What Is Happening With CoreWeave Stock?
Despite steady revenue and margins, CoreWeave (CRWV)’s stock plunged 44%, surprising many. Behind this tumble lie a mix of strong earnings, looming lock-up expiries, cautious guidance, and shifting analyst sentiment—all stirring the market more than the numbers alone reveal.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 6062025 | 12032025 | Change | |
|---|---|---|---|
| Stock Price ($) | 140.2 | 78.5 | -44.0% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | � | � | � |
| Net Income Margin (%) | � | � | � |
| P/E Multiple | � | � | � |
| Shares Outstanding (Mil) | 403.7 | 403.7 | 0.0% |
| Cumulative Contribution | � |
So what is happening here? The stock price slid 44%, yet revenue, net margin, and P/E multiple all held steady with no shifts. Let’s dive into what’s driving this drop beyond the numbers.
Here Is Why CoreWeave Stock Moved
- Strong Q2 Earnings: Q2 2025 revenue hit $1.21B, beating estimates, with a backlog of $30.1B, signaling strong AI demand.
- IPO Lock-Up Expiry: Post-IPO lock-up expiry, substantial insider selling occurred, with over $3.9B in sales in 90 days.
- Q3 Earnings & Meta Deal: Q3 2025 revenue was $1.36B, beating estimates, and a $14.2B deal with Meta boosted backlog to $55.6B.
- Revenue Guidance Cut: CoreWeave lowered 2025 revenue forecast due to data center delays, causing a 19% stock drop.
- Analyst Price Target Cuts: Following the guidance cut, several analysts reduced their price targets, adding downward pressure.
Our Current Assesment Of CRWV Stock
Risk: To get a real sense of CRWV’s risk, check how much it’s fallen in past market sell-offs. During the Dot-Com crash, it dipped 55%, slid 50% in the 2008 Financial Crisis, and fell 45% in 2020’s Covid turmoil. Even smaller pullbacks, like in 2018, wiped off around 20%. Sure, CRWV has solid fundamentals, but these drops show that no stock is immune when panic hits broad markets. It’s a reminder to factor in potential downside, even with strong setups.
Think this decline in CRWV stock is a buying opportunity? Maybe it is, but single-stock investments can be quite risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.