CoreWeave Stock (CRWV) Drops, Downgraded Following Earnings Report

CoreWeave Inc. (NASDAQ: CRWV) witnessed a decline in its stock price following the release of its third-quarter 2025 earnings and a subsequent analyst downgrade, reflecting market concerns over supply chain challenges despite strong revenue growth. The stock is trading 8.63% lower in pre-market at $96.50, showing the immediate impact of the news.

The AI cloud infrastructure provider's stock experienced downward pressure after missed earnings, and then JPMorgan downgraded the rating from Overweight to Neutral, with a reduced price target of $110, down from $135. This adjustment followed the company’s Q3 report, where robust bookings were overshadowed by supply chain disruptions. Before the downgrade CoreWeave's stock had risen 164% YTD, showing a significant correction.

CoreWeave's Q3 2025 results revealed a revenue of $1.36 billion, a 134% increase year-over-year, exceeding analyst expectations of $1.29 billion. The company's revenue backlog nearly doubled to $55.6 billion, fueled by substantial contracts with major clients such as Meta and OpenAI. Despite these positive indicators, CoreWeave reported a net loss of $110 million for the quarter, an improvement from the $360 million loss in Q3 2024. Operating expenses rose to $1.31 billion, including a $144 million stock-based compensation expense.

The primary concern highlighted by JPMorgan and other analysts revolves around delays stemming from a third-party data center developer. These delays are impacting CoreWeave's ability to meet immediate demand, leading to a revision of the full-year 2025 revenue guidance. The company now anticipates revenue between $5.05 billion and $5.15 billion, slightly below the previous forecast of $5.15 billion to $5.35 billion. The affected customer agreed to adjust the delivery schedule, preserving the total contract value.

Price Targets

Despite the short-term headwinds, CoreWeave continues to solidify its position in the AI infrastructure market through strategic partnerships. The company expanded its collaboration with OpenAI through a new contract worth up to $6.5 billion, bringing the total value of their collaboration to $22.4 billion. This partnership supports OpenAI's ambitious “Stargate” infrastructure project, aiming for 10 gigawatts of computational capacity.

The analyst downgrade reflects a difficulty in forecasting CoreWeave's future performance due to the ongoing supply chain uncertainties. While the company's longer-term opportunity remains unchanged, the near-term challenges have introduced caution into market sentiment.