- CoreWeave stock price continued its strong bullish trend this week.
- The company will publish its financial results later this week.
- Technical analysis suggests the stock will continue rising, potentially to its all-time high.
CoreWeave stock price continued to pump, reaching its highest point since October last year, continuing an uptrend that started earlier this year when it bottomed at $64. It will be in the spotlight this week, with its financial results to be released on Thursday.
CoreWeave Stock in Focus Ahead of Earnings
The CRWV stock price has continued rising as investors focus on its earnings. Analysts are optimistic that the ongoing AI boom will lead to strong results as the artificial intelligence (AI) boom continues.
Analysts estimate its revenue jumped 100% in the last quarter to over $1.96 billion. It will then provide guidance of $2.6 billion in the second quarter, up by 121% YoY.
Most notably, the annual revenue is expected to surge by 143% to $12.50 billion, followed by $23 billion next year. These numbers make it one of the fastest-growing companies in the US and a top beneficiary of the AI boom.
CoreWeave has become a duopoly with Nebius in the neocloud industry, as evidenced by the growing number of deals. It has already made major deals with the biggest companies in the AI industry, including popular names such as Anthropic, OpenAI, Microsoft, and Meta Platforms.
After announcing a $14 billion deal with Meta Platforms last year, the company extended it with $21 billion this year. It also expanded its deal with OpenAI to $22.5 billion. In total, the company is likely to reach a revenue backlog of over $100 billion this year.
CoreWeave’s main challenge is its high-cost business model, which has pushed its debt to over $15 billion. Its capital expenditure has also jumped to between $30 billion and $35 billion. This explains why the company has a short interest of over 15%.
Still, we believe that these fears are exaggerated, as we have seen with other companies. A good example of this is Tesla, a leading electric vehicle company that posted substantial losses and raised billions of dollars before becoming profitable.
Other companies like Meta Platforms and Google have gone through such periods when they focused on growth rather than profitability. This is the phase CoreWeave is in, as it focuses on growth without prioritizing profits for now.
CRWV Stock Price Technical Analysis
The three-day chart shows that the CRWV share price formed a double-bottom pattern at $64 and a neckline at $114.5. A double-bottom is one of the most popular bullish reversal patterns in technical analysis.
The stock has moved above the neckline and the descending trendline, which connects the highest swings since June last year. Top oscillators such as the Relative Strength Index (RSI) and the Percentage Price Oscillator have continued to rise.
Therefore, the most likely scenario is where the stock continues rising as bulls target the next key resistance at $152, its highest point in October this year. A move above that level will point to more gains, potentially to the all-time high.
READ MORE: vSonic, Unichain, Berachain, Scroll: How Promising Ethereum Rivals Collapsed
