CoreWeave Stock (CRWV) Tests Support Ahead of Earnings – Moving Higher Today

CoreWeave Inc. (NASDAQ: CRWV), a major player in the AI infrastructure space, is trading at $109 in pre-market hours, up 4.70% from its previous close. This latest rise comes amidst a broader cooling off period for AI-related stocks, with CRWV shedding nearly 20% of its value in the last month. The stock has found support around the $100 mark, a psychologically important level for investors.

Markets are eagerly awaiting the company's earnings report, scheduled for release after market close today. Analyst projections for the upcoming earnings report for CRWV Stock estimate an average earnings per share (EPS) of -0.51. Revenue expectations are set at approximately 1.28 billion. These figures suggest continued financial challenges for the company amid its efforts to stabilize its performance.

CoreWeave has been on an expansion tear this year, marked by strategic acquisitions and partnerships. The most notable of these is the proposed $9 billion all-stock acquisition of Core Scientific (NASDAQ: CORZ), aimed at bolstering CoreWeave's data center capacity and reducing future lease obligations. The company has also significantly expanded its partnership with OpenAI, securing a total contract value of $22.4 billion to power the training of next-generation AI models.

Further diversifying its portfolio, CoreWeave launched CoreWeave Ventures to invest in AI startups and acquired OpenPipe Inc., a developer platform specializing in reinforcement learning. These moves underscore CoreWeave's ambition to be a comprehensive AI infrastructure provider. The company has also announced plans to enter the U.S. federal market, seeking to provide secure AI cloud services to government agencies.

Recently, in Q2 2025, CoreWeave reported revenue of $1.213 billion, a 207% year-over-year increase. The company's backlog surged to $30.1 billion, driven by expansions with existing hyperscaler and AI clients. However, CoreWeave carries $11 billion in debt, with interest expenses totaling $530 million in the first half of 2025.

Cantor Fitzgerald currently rates CoreWeave as “Overweight” with a price target of $116.00, indicating confidence in the company's long-term potential. Melius Research also upgraded CoreWeave's outlook from ‘Hold' to ‘Buy' in September.

While the market seems focused on CoreWeave's debt and losses, perhaps it's overlooking the strategic brilliance of its financial maneuvering. The company is essentially leveraging debt to build an irreplaceable moat in the AI infrastructure space. The massive contracts with OpenAI and other hyperscalers act as collateral, justifying the debt and providing a predictable revenue stream.

In this light, the debt isn't a liability, but a calculated investment in future dominance. While other players tiptoe into the market, CoreWeave is aggressively building scale, making it increasingly difficult for competitors to catch up. The short-term pain of high interest payments could be a small price to pay for long-term market control.

Investors should pay close attention to the upcoming earnings report, focusing on revenue growth, profitability, and any updates on the Core Scientific acquisition. The company's ability to manage its debt and demonstrate a clear path to profitability will be crucial in determining its future stock performance.