CoreWeave, Inc. (CRWV) Down 5.1% — Should I Abandon the Position?
Key Points
CoreWeave, Inc. (CRWV) finished the latest session under clear pressure, retreating 5.10% and losing $4.33 to close at $80.50 from a prior finish of $84.83. The stock continues to slide after a sharp reversal from its earlier strength, now trading well below its 52-week peak of $187.00 set on June 20, 2025. At current levels, shares are down more than 55% from that high, underscoring how much ground the stock has surrendered in a relatively short time frame and highlighting the persistent headwinds facing recent buyers.
Trading activity also reflected waning enthusiasm. Volume came in at 9.6 million shares, well below the 90-day average of about 30.8 million, suggesting that this latest leg down occurred on lighter participation rather than heavy conviction buying to stem the decline. Within the broader software and cloud infrastructure group, several high-profile peers such as CrowdStrike (CRWD), Snowflake (SNOW), Cloudflare (NET), Datadog (DDOG), and Atlassian (TEAM) have also seen bouts of weakness in recent months, but CRWV’s retreat from its 52-week high has been particularly steep. Taken together, the price action points to a stock that remains under pressure, has been steadily losing ground, and is still struggling to regain sustained upside momentum after a pronounced slide from earlier highs.
Why CoreWeave, Inc. Price is Moving Lower
Weakness in CoreWeave, Inc. is being driven largely by growing skepticism that its rapid top-line expansion can translate into sustainable profitability. The stock’s violent swings — a nearly 20% spike on Dec. 19 tied to a high-profile U.S. Department of Energy partnership, followed by sharp pullbacks — highlight mounting concern that recent good news is being used as an exit point rather than a base for a durable uptrend. Despite triple-digit year-over-year revenue growth in Q3 2025 to $1.36 billion and a 12.4% sequential increase, the company remains firmly loss-making, with a negative profit margin of about 18% and EPS of -$2.64. That ongoing GAAP loss profile is weighing on sentiment, especially after a more than 60% drawdown from the June peak and an 8% plunge on Dec. 16 linked to sector-wide AI infrastructure selling pressure and CoreWeave’s own debt and convertible notes overhang.
Guidance and analyst actions are adding to the downside pressure. Management’s decision to trim its 2025 revenue outlook to around $5.05 billion–$5.15 billion, partly due to data center delays, has raised questions about execution at a time when expectations in AI and cloud infrastructure remain elevated. High leverage, insider selling, and a still-early path to margin expansion are prompting more cautious views, reflected in recent price target cuts such as Mizuho’s reduction to $92 (Neutral) and Davidson’s Sell rating with a $36 target. Even a sizable $55.6 billion backlog is not offsetting worries about timing, capital intensity, and the risk that execution missteps could further compress valuation.
What is the CoreWeave, Inc. Rating - Should I Sell?
Weiss Ratings assigns CRWV a D rating. Current recommendation is Sell. This D rating indicates an unfavorable risk/reward profile in our model, and was downgraded on 11/14/2025, reinforcing the view that conditions have worsened, not improved, for shareholders. While the company operates in a high-growth corner of Information Technology, our overall assessment is that the downside risks currently outweigh the potential rewards.
The most notable positive is the Good Growth Index, supported by extremely rapid revenue growth of 133.70%. However, this growth has not translated into sustainable profitability or shareholder value. The profit margin of -17.80% and a deeply negative forward P/E ratio of -32.08 signal that investors are paying a high price for earnings that are still firmly in the red. This disconnect between growth and earnings contributes directly to the Weak Total Return Index, indicating that strong top-line expansion has not protected investors from subpar performance.
Operationally, the Very Weak Efficiency Index is a serious concern. It points to poor use of capital and limited evidence that management is converting rapid growth into efficient operations or returns. The Fair Solvency Index provides only limited reassurance regarding the balance sheet, while the Weak Volatility Index signals a pattern of price swings that have tended to punish rather than reward investors.
Within Information Technology, CoreWeave, Inc. compares poorly even against several speculative peers. CrowdStrike Holdings, Inc. (CRWD, D+), Datadog, Inc. (DDOG, D+), and Snowflake Inc. (SNOW, D-) all sit in the same broad risk bucket, yet CRWV’s pure D rating and recent downgrade suggest comparatively weaker overall positioning and higher vulnerability if market sentiment turns further against unprofitable growth names.
About CoreWeave, Inc.
CoreWeave, Inc. is a NASDAQ-listed Information Technology company operating within the Software and Services industry, with a narrow focus on high-performance cloud infrastructure. The company positions itself as a specialized alternative to general-purpose hyperscale cloud providers, concentrating on GPU-accelerated workloads such as artificial intelligence, machine learning, visual effects rendering and other compute-intensive applications. Its platform is built around delivering access to large-scale clusters of graphics processing units and related infrastructure, marketed primarily to enterprise and developer clients that require significant parallel compute resources.
The company’s offering typically includes on-demand GPU instances, workload orchestration tools and infrastructure management services designed to support intensive data and model processing. CoreWeave emphasizes low-latency networking, scalable compute capacity and workload-optimized configurations, but it operates in a highly competitive segment dominated by better-capitalized cloud providers and emerging specialized rivals. The business model relies on maintaining access to advanced semiconductor hardware, complex data center deployments and a continuous pipeline of compute-heavy workloads, all of which carry structural cost and execution risks in the Software and Services space.
Investor Outlook
With CoreWeave, Inc. (CRWV) carrying a D (Sell) Weiss Rating, investors may want to exercise caution and closely monitor whether recent price action aligns with a sustainable turnaround or signals further downside risk. Watch for shifts in broader Information Technology trends and any changes in the company’s risk profile that could impact its overall rating trajectory. See full rankings of all D-rated Information Technology stocks inside the Weiss Stock Screener.
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