A December 15, 2025 analysis highlights significant volatility in CoreWeave (CRWV) stock. Since its March IPO, the stock is up over 125%. However, it has fallen about 50% from the all-time high set in June.
The bull case centers on CoreWeave's massive $55.6 billion revenue backlog. Major AI clients, including OpenAI and Microsoft, account for this demand. The company expects 40% of the backlog to materialize over the next two years.
Conversely, the bear case focuses on deep unprofitability. Over the past year, CoreWeave's capital expenditures have doubled its revenue. This spending pattern drives significant cash burn.
Investors must determine if the substantial backlog and market position can lead to near-future profitability. The company continues to spend heavily on hardware and infrastructure.