• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

CoreWeave stock price analysis: to get worse before it gets better

by July 11, 2025
by July 11, 2025

CoreWeave stock price has plunged in the past few days, even as NVIDIA soared to a record high and hit a $4 trillion market capitalization. CRWV stock has plunged to a low of $153, down from the all-time high of nearly $190. It remains 354% above its all-time low. 

This article explains why the CoreWeave share price may crash soon, before rebounding, potentially ahead of earnings.

Why CoreWeave stock price has crashed

CoreWeave is one of the fastest-growing companies in the United States. It is slowly becoming the biggest player in the artificial intelligence (AI) industry, where it offers data center solutions.

The company builds large data centers and then offers its services to companies working on large AI projects. Some of its top clients are companies like Microsoft and OpenAI. 

CoreWeave has a relatively simple business model. It simply buys a lot of NVIDIA GPUs and other products and then sells their solutions to these AI modellers. Just recently, it became the first company to offer the most advanced NVIDIA GPUs. 

The challenge, however, is that its business is highly capital-intensive since it has to lease spaces and buy these GPUs. As a result, it expects to spend between $20 billion and $23 billion in capital expenditure this year. 

One of its approaches to grow its business is through acquisitions. It recently announced that it would acquire Core Scientific, a company in the data center and Bitcoin mining operations in a deal valuing the latter at $9 billion. 

CoreWeave hopes that the deal will help it to scale its operations and also reduce costs over time. This buyout is one of the top reasons why the CRWV stock has crashed. 

Read more: CoreWeave stock is firing on all cylinders: get out before the engine overheats

Valuation concerns remain

One of the biggest concerns about CoreWeave stock is that analysts believe that its business is highly overvalued since its market capitalization has jumped to over $72 billion. They are also concerned about its profitability and valuation. 

Proponents justify the valuation in that it is one of the fastest-growing companies in Wall Street. Its first-quarter revenue rose by 420% to over $982 million. 

Analysts and the company anticipate that its growth will accelerate as the As demand continues. For example, the management guided its revenue to come in at between $1.06 billion and $1.1 billion, much higher than the $395 million it achieved in the last quarter. 

The annual revenue guidance is that its revenue will be between $4.95 billion and $5 billion, higher than last year’s $1.95 billion. Therefore, to some extent, it is easy to justify this valuation based on its revenue growth and the fact that it has a big market share in the industry.

Additionally, the company has room to become highly profitable by slowing its capital expenditure. In this, it will continue generating revenue while having low expenses. For now, it has to spend all this money to grow its market share and scale. 

Keep in mind that some companies have maintained their overvaluation status for years as long as they are able to demonstrate strong growth. A good example of this is NVIDIA. 

CoreWeave share price analysis

CRWV stock chart by TradingView

The two-hour chart shows that the CRWV stock price has pulled back in the past few days, moving from a high of $185 to the current $153. It has formed a head-and-shoulders pattern, a popular bearish reversal sign.

The stock has moved to the 23.6% retracement level and the 50-period moving average. Therefore, the most likely scenario is where it will drop to the 50% retracement level and then resume its uptrend, potentially after its earnings in August. 

The post CoreWeave stock price analysis: to get worse before it gets better appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Vrt stock crashes 11% today: why investors are concerned about Vertiv’s future
next post
Deporting Millions Won’t Boost the Economy — and Chaos is Costly

Related Posts

Top Nifty 50 Index gainers and losers of...

August 25, 2025

Here’s why the Orsted share price is crashing...

August 25, 2025

Foxconn recalls more Chinese engineers from India in...

August 24, 2025

Bank of America identifies 5 stocks with strong...

August 24, 2025

Cracker Barrel stock: why going back to the...

August 24, 2025

Top 3 stocks to buy with strong cash...

August 24, 2025

Here’s the only FTSE 100 stock in Warren...

August 24, 2025

US government’s investment in Intel may not be...

August 24, 2025

Top 4 Nasdaq 100 Index and QQQ ETF...

August 24, 2025

Hang Seng Index: bubble warnings ahead of Alibaba,...

August 24, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • How to Invest in Internet of Things (IoT) Companies

    August 25, 2025
  • CrossFit Reminds Us Who’s Really Running Your Life

    August 25, 2025
  • Why Americans Should Fear Washington in Intel’s Boardroom

    August 25, 2025
  • Trump Plays for All the Federal Reserve Marbles

    August 25, 2025
  • Top Nifty 50 Index gainers and losers of 2025 revealed

    August 25, 2025
  • Here’s why the Orsted share price is crashing today

    August 25, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 6

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 7

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025

Categories

  • Economy (2,309)
  • Editor's Pick (218)
  • Investing (185)
  • Stock (1,563)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Avoid the QQQ ETF, buy this Nasdaq...

February 26, 2025

William Blair is all praise for Tesla-Samsung...

July 29, 2025

PepeX presale raises $1 million as AI...

April 30, 2025