Why CoreWeave Stock Is Plummeting Today

Key Points

• CoreWeave reported Q2 2025 financial results after the market closed yesterday.

• Investors had lofty expectations for the company's recent performance.

• Today's pullback provides a good opportunity for AI-focused investors to start a position.

• 10 stocks we like better than CoreWeave ›

Before the market opened today, CoreWeave (NASDAQ: CRWV) had ripped 30% higher since the start of August. Today, however, investors are sending the artificial intelligence (AI) stock in the other direction.

AI investors are unhappy with the second-quarter 2025 financial results that the company released yesterday after the market closed and are clicking the sell button today. As of 9:45 a.m. ET, shares of CoreWeave were down 13.8%.

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Investors had sky-high expectations for this AI cloud stock

After combing through CoreWeave's Q2 2025 financial results, investors would be hard-pressed to find areas in which the company stumbled. CoreWeave posted revenue of $1.21 billion, beating analyst expectations that it would report sales of $1.08 billion.

With respect to profitability, CoreWeave reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $753.2 million, a notable increase over the adjusted EBITDA of $249.8 million it reported during the same period last year, and $606.1 million in adjusted EBITDA it reported during Q1 2025.

Another source of encouragement was the company's strong backlog growth. At the end of Q2 2025, CoreWeave had a $30.1 billion backlog, a 30.1% year-over-year increase.

This impressive growth helped motivate management to upwardly revise 2025 guidance. Whereas CoreWeave had projected 2025 revenue of $4.9 billion to $5.1 billion initially, it now expects to report $5.15 billion to $5.35 billion on the top line.

Does today's sell-off provide a solid buying opportunity?

Although there was a lot to celebrate regarding CoreWeave's Q2 2025 performance, it wasn't enough to placate investors who had lofty expectations. Fortunately for those who had been sitting on the sidelines, today's pullback in CoreWeave stock provides a great opportunity to start -- or add to -- a position.

It wouldn't be surprising if this pullback doesn't last and shares start to resume their upward trajectory in the very near future. Appetite for AI exposure remains robust, and CoreWeave's position as a leading AI hyperscaler has made CoreWeave stock highly desirable for AI-focused investors.

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.