CoreWeave (NASDAQ:CRWV) Stock Price Down 10.1% – Here’s Why

Shares of CoreWeave Inc. (NASDAQ:CRWV) traded down 10.1% during mid-day trading on Thursday. The company traded as low as $53.50 and last traded at $55.60. Approximately 80,328,445 shares were traded during trading, an increase of 161% from the average daily volume of 30,794,932 shares. The stock had previously closed at $61.82.

Key CoreWeave News

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: CoreWeave’s long-term growth case remains substantial. The company reportedly has approximately $104 billion in contracted revenue, has implemented a 25% price increase and is bringing additional data-center capacity online. Bank of America maintained a Buy rating and cited the potential for a 168% year-over-year increase in third-quarter revenue. CoreWeave capacity expansion to drive revenue growth, Bank of America says
• Positive Sentiment: New enterprise products, including a Zero Trust AI Framework and Physical AI Launchables, could broaden CoreWeave’s customer base by addressing security and deployment concerns in robotics, autonomous vehicles and other advanced workloads. Does CoreWeave Change The Enterprise AI Case With New Security Tools?
• Neutral Sentiment: Some analysts and industry executives argue that the AI selloff is overdone and that demand fundamentals remain strong. However, investors are waiting for upcoming third-quarter results to determine whether revenue growth is translating into cash flow and sustainable profits. The AI Rout: Sorting CAPEX Fact From Fiction
• Negative Sentiment: Higher Treasury yields are reducing the appeal of speculative growth stocks and increasing CoreWeave’s borrowing costs. Its balance sheet is highly leveraged, with a debt-to-equity ratio above 5, while its bonds and credit-default swaps have shown signs of investor stress. Analysts have highlighted a potential $76 billion funding gap to support planned expansion. Bernstein puts CoreWeave’s funding gap at $76 billion
• Negative Sentiment: Analyst sentiment has deteriorated. Morgan Stanley reduced its price target from $99 to $70 and assigned an Equal Weight rating, while other analysts have also cut targets amid financing concerns. The downgrades are reinforcing the view that strong AI demand may not offset near-term capital and liquidity risks. Morgan Stanley lowers CoreWeave price target
• Negative Sentiment: Short sellers have profited from the selloff in AI data-center stocks, and concerns about expensive debt, large capital expenditures and uncertain returns could continue to pressure CRWV until the company demonstrates stronger free cash flow. Short Sellers Just Made $6 Billion Betting Against AI Data Center Stocks

Analysts Set New Price Targets

CRWV has been the subject of several analyst reports. Raymond James Financial lowered CoreWeave from a “moderate buy” rating to a “hold” rating in a research note on Wednesday, July 22nd. Citigroup boosted their target price on CoreWeave from $142.00 to $159.00 and gave the company a “buy” rating in a research report on Friday, August 14th. Jefferies Financial Group reissued a “buy” rating on shares of CoreWeave in a research report on Thursday, October 15th. William Blair started coverage on CoreWeave in a report on Wednesday, September 30th. They set an “outperform” rating on the stock. Finally, Wolfe Research restated an “outperform” rating on shares of CoreWeave in a research report on Monday, July 6th. Twenty-five investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $130.31.

CoreWeave Price Performance

The company has a current ratio of 0.46, a quick ratio of 0.46 and a debt-to-equity ratio of 5.53. The company has a market capitalization of $24.89 billion, a PE ratio of -14.86 and a beta of 7.36. The stock’s 50-day moving average is $82.95 and its two-hundred day moving average is $93.76.

CoreWeave (NASDAQ:CRWV) last announced its quarterly earnings data on Tuesday, August 11th. The company reported ($1.14) earnings per share (EPS) for the quarter, topping the consensus estimate of ($1.52) by $0.38. The business had revenue of $2.58 billion during the quarter. CoreWeave had a negative net margin of 25.41% and a negative return on equity of 47.95%. The firm’s revenue for the quarter was up 112.5% on a year-over-year basis. During the same period in the previous year, the business earned ($0.27) EPS. On average, equities analysts predict that CoreWeave Inc. will post -4.96 EPS for the current year.

Insider Activity

In other CoreWeave news, CFO Nitin Agrawal sold 22,579 shares of the company’s stock in a transaction on Monday, October 12th. The stock was sold at an average price of $80.13, for a total value of $1,809,255.27. Following the transaction, the chief financial officer owned 110,017 shares of the company’s stock, valued at $8,815,662.21. This represents a 17.03% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Jonathan Jones sold 21,569 shares of the stock in a transaction on Tuesday, October 13th. The stock was sold at an average price of $77.42, for a total value of $1,669,871.98. Following the completion of the sale, the executive owned 5,392 shares in the company, valued at approximately $417,448.64. The trade was a 80.00% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 5,352,578 shares of company stock worth $471,777,344 in the last three months. Corporate insiders own 24.20% of the company’s stock.

Institutional Trading of CoreWeave

A number of large investors have recently made changes to their positions in CRWV. MassMutual Private Wealth & Trust FSB increased its stake in CoreWeave by 241.1% in the 3rd quarter. MassMutual Private Wealth & Trust FSB now owns 307 shares of the company’s stock worth $27,000 after buying an additional 217 shares during the period. Essential Partners LLC bought a new stake in CoreWeave during the 2nd quarter valued at about $30,000. Peterson Wealth Services lifted its holdings in CoreWeave by 153.1% during the 1st quarter. Peterson Wealth Services now owns 405 shares of the company’s stock valued at $31,000 after buying an additional 245 shares in the last quarter. Cassaday & Co Wealth Management LLC bought a new stake in CoreWeave during the 1st quarter valued at about $31,000. Finally, Burnham & Co LLC purchased a new stake in CoreWeave in the 2nd quarter valued at about $32,000.

CoreWeave Company Profile

CoreWeave, Inc is a specialized cloud computing company that provides infrastructure designed for artificial intelligence (AI), machine learning, and other high-performance computing workloads. Its platform gives customers access to accelerated computing resources, including graphics processing units (GPUs), along with the networking, storage, and software tools needed to develop, train, and deploy demanding applications.

The company offers cloud services for AI model training and inference, visual effects and rendering, scientific computing, and other data-intensive workloads.