Why CoreWeave Stock Is Plunging in After-Hours Trading
Key Points
CoreWeave reported Q4 2025 financial results after the bell rang this afternoon.
The company exceeded analysts' top-line estimates, but it reported a steeper net loss than analysts had anticipated.
For those with low tolerance for risk, there are other AI stocks to consider besides CoreWeave.
- 10 stocks we like better than CoreWeave ›
After dipping 0.4% during regular trading hours today, CoreWeave (NASDAQ: CRWV) stock is heading sharply lower during after-hours trading. The company reported fourth-quarter 2025 financial results, and while the company exceeded expectations on the top-line, the results weren't strong enough to outshine the blemishes investors found in the earnings report.
As of 5:02 p.m. ET, shares of the cloud provider are down 7.9% from closing at $97.63 at the end of regular trading hours today.
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Forget revenue growth; investors are more concerned with profitability
Beating analysts' expectations that it would post sales of $1.53 billion, CoreWeave reported Q4 2025 sales of $1.57 billion. The top-line beat wasn't enough to placate investors, who had lofty ambitions for the company, a provider of cloud services catering to artificial intelligence (AI) computing. What investors found at the bottom of the income statement provided even more concern.
Instead of meeting analysts' Q4 2025 diluted earnings per share (EPS) estimate of negative $0.68, CoreWeave booked diluted EPS of negative $0.89. But that wasn't the only concerning figure regarding CoreWeave's lagging profitability.
The company's Q4 2025 net loss of $452 million represented a net loss margin of 29% -- notably steeper than the 7% net loss margin that it reported during the same period last year.
Is CoreWeave stock a buy on the pullback?
Unsurprisingly, CoreWeave stock is dipping following the company's Q4 2025 financial results. The market has lofty expectations for this AI stock, and even strong revenue growth can't distract investors from the fact that it posted a sharper net loss in Q4 2025 than in the same period in 2024.
While the company's steep net loss isn't a red flag, those with lower risk tolerances may want to see it achieve a narrower net loss before considering a position. On the other hand, those less interested in high-risk stocks will find that there are plenty of other AI stocks to consider at the moment.
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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.
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