CRWV Stock Breakout Pre-Q2 After 40% August Rally – CoreWeave’s Earnings Preview
CoreWeave’s explosive run since its March IPO has captivated markets, but investors are now turning their attention to whether rapid....
Quick overview
- CoreWeave's stock surged 250% post-IPO, reaching an all-time high of $184 before facing a pullback.
- Despite strong revenue growth, the company reported a significant loss in Q1, raising concerns about its path to profitability.
- Investors are eagerly awaiting Q2 earnings to assess whether CoreWeave can narrow its losses and demonstrate operational efficiency.
- The upcoming earnings report is critical, as it could either reignite the stock's rally or deepen valuation concerns.
CoreWeave’s explosive run since its March IPO has captivated markets, but investors are now turning their attention to whether rapid growth can translate into sustainable profits.
A Record-Breaking Post-IPO Rally
CoreWeave Inc. (NASDAQ: CRWV) has been one of the most eye-catching new listings of 2025. Debuting on the NASDAQ in late March at $40 per share, the cloud infrastructure startup surged to $131 by the end of May—a staggering 250% gain in just two months. After a brief pullback, bullish momentum returned, propelling the stock to an all-time high of $184 by June 20.
CRWV Chart Daily – Buyers Stopped at the 50 SMA
The rally lost steam afterward, with shares retreating steadily through July before finding support near $100, a level reinforced by the 20-week moving average on the charts. This technical base sparked a powerful rebound in August, with the price jumping 40% to $139, where it encountered resistance at the 50-week SMA, stalling further upside.
Momentum Meets Market Skepticism
While the company’s first quarterly results as a public firm in May fueled bullish enthusiasm, they also exposed cracks in the growth narrative. For Q1, CoreWeave posted a loss of $0.83 per share—far wider than the consensus estimate for a $0.16 loss. This miss of $0.67 per share tempered excitement, even as bookings growth significantly exceeded expectations.
The figures highlighted a central tension in the CoreWeave story: rapid expansion versus the path to profitability. Aggressive investments in infrastructure and capacity have powered market share gains, but the lack of positive earnings is now a focal point for long-term investors.
Eyes on Q2 Earnings
With Q2 results set for release this Thursday, markets are eager to see whether CoreWeave can narrow its losses and prove that its growth engine is moving toward sustainability. Traders will be scrutinizing margins, forward guidance, and any signs of improving operational efficiency. A strong report could re-ignite the stock’s rally, while disappointing numbers may deepen doubts about its current valuation—especially after a 450% climb from its IPO price.
Q2 Earnings Release Schedule
- Date & Time: Tuesday, August 12, 2025, after market close.
- Ticker: CoreWeave (NASDAQ: CRWV)
Consensus Estimates
- EPS: -$0.20 (no upward revisions, 12 downward revisions in the last 3 months).
- Revenue: $1.08 billion (11 upward revisions, 1 downward revision over the last 3 months).
- The mix of EPS downgrades and revenue upgrades suggests analysts expect strong top-line momentum but continued bottom-line weakness.
Q1 2025 Performance Recap
- Revenue: $981.6 million, a 420% year-over-year surge, fueled by rapid expansion in cloud infrastructure demand.
- Sales Backlog: $25.9 billion as of March 31, 2025, signaling strong contracted demand and multi-quarter visibility.
- Net Loss: $314 million, reflecting heavy investment in infrastructure, R&D, and scaling operations.
Key Factors to Watch for Q2
- Margins: Any sign of narrowing operating losses will be closely monitored given EPS downgrade trends.
- Bookings Growth: Investors will want confirmation that the sales backlog is continuing to expand.
- Capital Expenditure Trends: Whether spending growth is stabilizing after a heavy investment cycle.
- Guidance: Management commentary on profitability targets and cash flow outlook will be critical for sentiment.
Conclusion: CoreWeave enters its Q2 earnings release with sky-high expectations on revenue but growing scrutiny over profitability. The market will likely reward signs of operational efficiency and cost control, but another deep loss could reignite valuation concerns—especially after the stock’s extraordinary post-IPO surge. With revenue momentum still strong and a massive backlog in place, the earnings call could set the tone for whether CRWV’s rally regains momentum or takes a breather.
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