Watch Out for Cava, Circle, and CoreWeave

Aug 13, 2025 - 14:00
Watch Out for Cava, Circle, and CoreWeave

Inflation, tariffs, and weakening consumer sentiment will hurt some restaurant chains. CAVA Group (CAVA) posted second-quarter results after markets closed on Tuesday. Shares fell by 22%.

The firm reported a 20.2% Y/Y rise in revenue, to $278.25 million. It added 16 restaurants, up by 16.7%. The diminishing growth rate is a concern. CAVA stock traded at a 70.5 times price-to-earnings ratio before the firm posted results.

Circle (CRCL) is under selling pressure after the company launched a public offering. After markets closed on Tuesday, Circle said it would sell 10 million shares. Most of these shares are not in circulation.

Circle’s business momentum is in question. It increased USDC circulation by three percent in the quarter. However, the company is guiding for a 40% compounded annual growth rate. This forecast appears too optimistic. Competitors are offering stablecoins, which lowers its attractiveness.

After CoreWeave posted Q2 results, CRWV stock fell by 10% in after-hours trade. It lost $0.60 in EPS as revenue grew by 210.3% Y/Y to $1.21 billion. Beware of the 90-day lockup, which ends this Thursday afternoon. Investors who missed the run-up might get CRWV stock at sharply lower prices.

CoreWeave shares traded in a range of $33.51 to as high as $187. It closed at $148.75.