CoreWeave’s stock (CRWV) has staged a sharp recovery in recent days, bouncing over 50% from its July 29 low of $60 to trade near $90.6 as investors rotated back into artificial intelligence plays. This rally faces a pivotal moment when the company reports second-quarter earnings after Tuesday’s closing bell.
Once a Bitcoin mining operation that counts Nvidia as its largest shareholder with a 9% stake, CoreWeave has transformed into a fast-growing AI cloud provider. Its revenue skyrocketed from $16 million in 2022 to more than $5.1 billion last year, with analysts forecasting another 111% jump to $2.6 billion in Q2 2026. That would extend a streak of triple-digit growth and push the annual run rate toward an estimated $12.6 billion.
However, concerns loom over the cost of building data centers. Capital expenditures for the quarter are guided as high as $9 billion, up from $2.4 billion a year earlier. The company already carries $25 billion in debt on its balance sheet, though it has secured up to $14 billion in additional financing, including a $1 billion equity investment from hedge fund Jane Street. Depreciation and interest expenses ate up 81% of first-quarter revenue, and an adjusted pre-tax loss of $491 million is projected to widen, with analysts modeling a loss per share of -$1.18 for Q2. Operating margins are expected to plunge 82% year-over-year.
On the bullish side, the revenue backlog is projected to swell 246% to $104.4 billion, largely from AI cloud contracts with Microsoft, Meta, and OpenAI. Analyst price targets range from $100 (Mizuho) to $167 (Cantor Fitzgerald), with Citigroup and Jefferies setting targets of $142 and $150, respectively.
Competition is heating up. SpaceX has begun renting computing capacity to Anthropic and Google, while Meta Platforms is considering a push into the data center infrastructure market. Other former Bitcoin mining firms have also poured money into the sector.
Technically, CRWV has formed a triple-bottom pattern around $66.26 and an inverted head-and-shoulders pattern, moving above the 50-day EMA. The next key target is $100, aligning with the Major S/R pivot point, while a failure could see a drop to the $75 Murrey Math Lines support level.
Insider selling adds a note of caution: CEO Michael Intrator sold over 307,000 shares last week at an average of $91.80. Since insiders were allowed to sell roughly a year ago, the stock has fallen 10% while the S&P 500 gained 20%.
