Yahoo Finance puts CoreWeave’s average price target at $141.39, implying about 63% upside from current levels. Q2 revenue rose 112% to $2.6 billion, but the AI-computing provider reported a $49 million operating loss and a loss per share of $1.14.
CoreWeave ended Q2 with a $104 billion revenue backlog and added more than $25 billion in the early weeks of Q3. The backlog rose 5% from the prior quarter and 246% year over year. Management said near-term capacity across current and previous generations of Nvidia GPUs was largely sold out. The company may not recognize all of the backlog as revenue soon, since some contracts extend long term.
The Motley Fool author identifies rising debt, reliance on a few customers for most revenue and recent share dilution as risks. The author considers CoreWeave a potential five-year buy-and-hold investment, but says slower revenue growth could weaken margins and deepen losses. The article puts the stock’s price-to-sales ratio at 5.9 and says that valuation may be reasonable given its growth.
