Why CoreWeave (CRWV) Is Down 16.4% After Major AI Partnerships and Q3 Earnings Miss

• CoreWeave reported third-quarter 2025 earnings, posting US$1.36 billion in sales and a net loss of US$110.12 million, alongside announcements of major new commercial agreements with CrowdStrike and VAST Data to strengthen its AI cloud capabilities.

• These developments highlight CoreWeave’s rapid progress in broadening its partnerships and solidifying its position in the expanding AI infrastructure market.

• We’ll explore how CoreWeave’s partnership momentum and revenue growth shape its investment narrative, especially as enterprise AI demand accelerates.

Find companies with promising cash flow potential yet trading below their fair value.

To be a CoreWeave shareholder right now, you have to believe in the company’s ability to rapidly capture an outsized share of the booming AI cloud market, despite its ongoing losses and recent share price volatility. The recent earnings report, showing both robust sales growth and a narrowing net loss, supports the narrative that demand for cloud-based AI infrastructure remains strong. New, high-value partnerships with CrowdStrike and VAST Data could help CoreWeave address short-term catalysts: expanding cloud capacity, enhancing data security, and growing its enterprise footprint. These agreements also sharpen the company’s edge as federal market expansion and large client contracts (like Meta and OpenAI) play out. However, the business remains exposed to risks around high debt levels, unprofitability, legal uncertainties, and a heavy dependence on a handful of major customers. While these latest deals strengthen the bull case for revenue and scale, they likely don’t eliminate concerns around volatility, insider selling, or the company’s shorter cash runway. On the other hand, heavy reliance on major clients and recent insider selling present risks you should be aware of.

Despite retreating, CoreWeave’s shares might still be trading above their fair value and there could be some more downside. Discover how much.

The Simply Wall St Community shared 87 fair value estimates for CoreWeave, with opinions spanning from as low as US$6.10 up to US$424.10 per share. Such a spread, many suggesting extreme undervaluation, highlights just how differently individual investors view CoreWeave’s growth story. Keep in mind that while enthusiasm around large AI partnerships grows, concentration risk and fresh legal issues may weigh on future sentiment.

Explore 87 other fair value estimates on CoreWeave – why the stock might be worth less than half the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include CRWV.

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