CoreWeave Stock Looks Like a Risky Bet

Artificial intelligence (AI) infrastructure provider CoreWeave (NASDAQ: CRWV) is tapping into incredible demand for AI computing capacity. The company leases its infrastructure to hyperscalers, AI labs and enterprises, a model that is driving rapid-fire revenue growth. CoreWeave reported revenue of $1.21 billion in the second quarter of 2025, up from less than $400 million in the prior-year period.CoreWeave is profitable on an operating basis, but just barely. The company squeaked out an operating income of $19.2 million in the second quarter, a big drop from the same period last year. Net income is deep in the red thanks to interest payments on CoreWeave's massive debt load, and cash flow is in negative territory as well. While CoreWeave is growing fast, profitability is a real problem.CoreWeave reported a net loss of $290.5 million, and an adjusted net loss of $130.8 million, in the second quarter. Interest payments consumed $267 million, putting the company on pace to shell out more than $1 billion in interest over the next year. CoreWeave has racked up more than $11 billion in debt, and it's paying high rates to service that debt. The company recently raised $2 billion by selling unsecured notes that carry an interest rate of 9.25%.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool