‘Growing Pains’: Top Investor Not Scared Off By Falling CoreWeave Stock

According to company management, CoreWeave (NASDAQ:CRWV) had good news to share when it reported its Q4 and full-year fiscal news. The market just didn’t see it that way.

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CRWV’s share price has been tanking since it revealed its numbers, and has lost 20% in the days following last Thursday’s earnings report. Management’s assertion of “robust demand,” “focused execution,” and “strong results” clearly didn’t have the desired effect.

Indeed, the market elected not to focus on the company’s full-year revenue of $5.1 billion (up 168% year-over-year) or its revenue backlog of $66.8 billion (a sequential increase of $11.2 billion, and a not-so-incremental jump of more than $50 billion year-over-year).

Rather, investors were fixated on the company’s growing net losses (-$452 million in Q4 2025 versus -$51 million in Q4 2024), increasing interest expenses (-$388 million in Q4 2025 versus -$149 million in Q4 2024), and an EPS miss of $0.21.

To one top investor known as Stone Fox Capital, this totally misses the mark.

“Focus on prospects, not growing pains,” emphasizes the 5-star investor, who is among the top 4% of stock pros covered by TipRanks.

While Stone Fox acknowledges that CoreWeave’s margin miss isn’t exactly welcome news, the investor doesn’t see it as a huge red flag. After all, CoreWeave is a nascent company working to service a massive backlog, not a mature company that’s running into pricing issues.

Furthermore, Stone Fox points out that the costs of getting a data center up and running aren’t exactly minuscule. CoreWeave brought on close to 260 MW of new power last quarter, which the investor notes is equivalent to roughly 44% of the company’s Q3 2025 total capacity of 590 MW.

“Any company with this type of growth just isn’t going to have perfect margins,” explains Stone Fox.

What does excite the investor are the company forecasts of $30 billion in ARR by the end of 2027. The investor also cites the company’s target long-term adjusted operating income margin of 25%-30%.

“The key investor takeaway is that the market is irrationally reacting to the CoreWeave margin story during a major ramp-up phase,” concludes Stone Fox, who remains ultra bullish on CRWV, maintaining a Strong Buy rating. (To watch Stone Fox Capital’s track record, click here)

Wall Street is sticking around as well. With 11 Buys and 8 Sells, CRWV enjoys a Moderate Buy consensus rating. Its 12-month average price target of $114.18 points to an upside approaching 50%. (See CRWV stock forecast)

Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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