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Is CoreWeave’s Rise a Fading Spark?

Jack KelloggAvatar
Written by Jack Kellogg
Updated 5/1/2025, 11:37 am ET 5/1/2025, 11:37 am ET | 5 min 5 min read

CoreWeave Inc.’s stocks have been trading up by 14.37 percent amid optimistic sentiment driven by significant cloud technology advancements.

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Live Update At 11:37:19 EST: On Thursday, May 01, 2025 CoreWeave Inc. stock [NASDAQ: CRWV] is trending up by 14.37%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

CoreWeave’s Earnings Snapshot

In the world of trading, making informed decisions is crucial. Beginner traders often find themselves overwhelmed by the constant fluctuations of the market. It’s vital to remember that risk management should always be a priority. As millionaire penny stock trader and teacher Tim Sykes says, “It’s better to go home at zero than to go home in the red.” Understanding this principle can save traders from catastrophic losses. Rather than recklessly chasing after profits, traders should adopt a strategy that prioritizes preserving their capital. Being willing to walk away without a loss underscores the importance of patience and discipline in trading. Only by embracing such a mindset can traders hope to achieve long-term success in the market.

CoreWeave Inc., a known player in the cloud and AI service field, recently took a giant step forward by utilizing Nvidia AI servers, touted as cutting-edge in computational power. This notable partnership got everyone’s attention. However, it wasn’t all smooth sailing. Microsoft’s surprising halt on data center initiatives raised eyebrows across the tech space, and the ripple effects could be substantial.

Their revenue stands tall at $1.92B, a hefty number indeed, but still befuddles many when one peeks at their struggles to convert these into tangible profits. Their negatively-tainted pretax profit margin of -3.9% showcases how CoreWeave is marching uphill, battling with costs and trying to carve out a profit amidst mounting debts.

Financial strength is another area where CoreWeave exhibits a precarious footing. The company’s leverage ratio has hit eyebrow-raising levels, pointing towards a significant reliance on borrowed wealth to drive its operations forward. More so, the working capital reports suggest liquidity issues with numbers sliding into the red.

Despite the storm, the company continues resisting by reinvesting in its infrastructure, pumping in capital to cement its stakes in the AI sector. This approach is bolstered by a cloud of uncertainty but fueled by the promise of future dominance in their niche.

Market Trades and Future Outlook

Like many stocks, CoreWeave displays a tumultuous relationship with the market. With a recent opening price at $47.025, a somewhat comforting climb was seen through the day, only to end slightly above at $47.235. Small fluctuations appear to suggest a bit of hesitance amidst optimistic trial runs. As millionaire penny stock trader and teacher Tim Sykes says, “Small gains add up over time; focus on building wealth gradually, not chasing jackpots.” This trading philosophy resonates with CoreWeave’s fluctuating prices and provides a strategy for navigating these peaks and troughs.

Behind these numbers, CoreWeave’s story intertwines with bigger tales from the industry that could tilt the scales their way. The uncertainty lodged by Microsoft’s data center halts shadows their growth potential temporarily. Yet, with good navigation and capitalizing on provided Nvidia technology, a bit of resurgence remains within reach.

Observing CoreWeave’s performance over time invites a mixed judgement playing out on the tableau of technology and innovation. While they’ve shown promising business relationships, the financial documentation urges careful attention to debt management (a cautious tale). This acts as a guide—a lighthouse—to traders waiting at the bay, eager yet discerning about setting sail into the CoreWeave ecosystem.

Through mindful management and keen alignment with tech developments, CoreWeave could potentially rise again, not just a spark but a blazing torch of success, crafting a novel chapter showcasing regained vitality.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

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Jack Kellogg

He teaches webinars on Tim Sykes’ Trading Challenge He became Tim’s youngest millionaire student in 2020. Now he’s second on the Trading Challenge leaderboard with $12.9 million in career earnings. He’s a master of the 7-Step Pennystocking Framework. Jack is one of a rare breed of traders to profitably trade the entire penny stock framework.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”