CoreWeave Stock (CRWV) Gains Into Earnings as Citi Expects Revenue Beat

CoreWeave's stock (NASDAQ: CRWV) has rallied strongly into today's earnings, with the after hours report coming off the back of a 7.9% gain yesterday, and 32% on the week leading in.

Analysts project that CoreWeave will report a loss of $0.20 per share against strong top-line performance, with average revenue estimates at $1.08 billion.

The general upward momentum comes amid a flurry of recent developments, including a strong Q1 earnings report, strategic partnerships, and a proposed acquisition, all contributing to a complex narrative for the company's future.

Citi analysts have reiterated a bullish stance on CoreWeave, anticipating another double-digit revenue beat in the upcoming Q2 earnings report, scheduled for release after market close today. Their optimism is fueled by the robust demand for AI infrastructure, where CoreWeave has positioned itself as a key provider. The firm maintains a “Buy” rating on CRWV with a price target of $160, suggesting further upside potential.

A key concern has been the impending expiration of CoreWeave's share lock-up period on August 15, 2025. This event will unlock approximately 83% of the company's Class A shares, potentially flooding the market and creating downward pressure on the stock price.

However, Citi believes that CoreWeave's strong underlying fundamentals and growth prospects will be sufficient to absorb this influx of shares.

CoreWeave's Q1 2025 earnings report, released in May, showcased impressive revenue growth, with a staggering 420% year-over-year increase, reaching $981.6 million and exceeding analyst estimates of $853 million. This revenue surge underscores the company's ability to capitalize on the rapidly expanding AI market.

Notably, CoreWeave's revenue backlog stands at a substantial $25.9 billion, further solidifying its future revenue stream. This backlog was significantly boosted by a strategic deal with OpenAI, adding $11.2 billion.

The agreement commits OpenAI to paying up to $4 billion to CoreWeave through April 2029, highlighting the strong demand for CoreWeave's AI infrastructure services and bolstering market confidence.

However, recent news regarding CoreWeave's proposed acquisition of Core Scientific, a data center operator, has injected uncertainty into the market. CoreWeave offered a $9 billion all-stock proposal, but the deal has faced opposition from at least one major Core Scientific shareholder, Two Seas Capital, which holds a 6.3% stake.

This shareholder publicly opposed the deal, arguing that it undervalues Core Scientific and exposes shareholders to undue risk, raising concerns among the markets, especially given the volatility of CoreWeave's stock.