Morgan Stanley Issues Pessimistic Forecast for CoreWeave (NASDAQ:CRWV) Stock Price

Key Points

• Morgan Stanley cut CoreWeave’s price target from $99 to $70 while maintaining an “equal weight” rating, citing a target that still implies roughly 25.9% upside from the reported $55.60 share price.
• Analyst sentiment is divided: CoreWeave has a “Moderate Buy” consensus and a $130.31 average target, but ratings range from HSBC’s $39 “reduce” view to Citigroup’s $159 “buy” target.
• Financing and leverage remain major risks. The stock has fallen sharply, carries a 5.53 debt-to-equity ratio, and insiders have sold more than 5.35 million shares worth about $471.8 million over the past 90 days, despite revenue growing 112.5% year over year in the latest quarter.

CoreWeave (NASDAQ:CRWV - Get Free Report) had its price target dropped by research analysts at Morgan Stanley from $99.00 to $70.00 in a note issued to investors on Friday, Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Morgan Stanley's price target indicates a potential upside of 25.90% from the stock's current price.

Several other brokerages also recently commented on CRWV. Mizuho dropped their target price on shares of CoreWeave from $115.00 to $88.00 and set a "neutral" rating on the stock in a report on Thursday, October 15th. Citigroup upped their price target on shares of CoreWeave from $142.00 to $159.00 and gave the company a "buy" rating in a report on Friday, August 14th. Robert W. Baird raised their price target on CoreWeave from $100.00 to $130.00 and gave the company an "outperform" rating in a research report on Wednesday, August 12th. HSBC reiterated a "reduce" rating and issued a $39.00 price objective on shares of CoreWeave in a research note on Tuesday. Finally, The Goldman Sachs Group raised CoreWeave from a "neutral" rating to a "buy" rating and set a $106.00 price objective for the company in a research report on Monday. Twenty-five research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat, CoreWeave has an average rating of "Moderate Buy" and a consensus price target of $130.31.

CoreWeave Trading Down 10.1%

Shares of CRWV stock opened at $55.60 on Friday. CoreWeave has a 12 month low of $53.50 and a 12 month high of $141.79. The company has a quick ratio of 0.46, a current ratio of 0.46 and a debt-to-equity ratio of 5.53. The business's 50 day moving average is $83.97 and its two-hundred day moving average is $94.04. The company has a market cap of $25.51 billion, a PE ratio of -15.23 and a beta of 7.36.

CoreWeave (NASDAQ:CRWV - Get Free Report) last issued its quarterly earnings data on Tuesday, August 11th. The company reported ($1.14) earnings per share for the quarter, topping analysts' consensus estimates 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%. CoreWeave's quarterly revenue was up 112.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.27) earnings per share. Equities analysts predict that CoreWeave will post -4.95 EPS for the current year.

Insider Activity

In other news, major shareholder Magnetar Financial Llc sold 307,131 shares of the business's stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $108.75, for a total transaction of $33,400,496.25. Following the transaction, the insider owned 220,810 shares in the company, valued at approximately $24,013,087.50. The trade was a 58.18% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Michael N. Intrator sold 200,000 shares of the company's stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $66.62, for a total transaction of $13,324,000.00. Following the transaction, the chief executive officer directly owned 2,276,815 shares of the company's stock, valued at $151,681,415.30. This represents a 8.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 5,352,578 shares of company stock worth $471,777,344. Insiders own 24.20% of the company's stock.

Hedge Funds Weigh In On CoreWeave

Several large investors have recently added to or reduced their stakes in CRWV. Public Employees Retirement System of Ohio bought a new stake in shares of CoreWeave during the second quarter valued at approximately $15,543,000. California State Teachers Retirement System raised its stake in shares of CoreWeave by 25.5% in the first quarter. California State Teachers Retirement System now owns 320,011 shares of the company's stock valued at $24,791,000 after purchasing an additional 64,960 shares in the last quarter. Bank of New York Mellon Corp lifted its position in CoreWeave by 12.6% in the first quarter. Bank of New York Mellon Corp now owns 353,702 shares of the company's stock worth $27,401,000 after purchasing an additional 39,599 shares during the period. Ardmore Road Asset Management LP lifted its position in CoreWeave by 3,410.0% in the first quarter. Ardmore Road Asset Management LP now owns 351,000 shares of the company's stock worth $27,192,000 after purchasing an additional 341,000 shares during the period. Finally, TD Waterhouse Canada Inc. lifted its position in CoreWeave by 30.6% in the second quarter. TD Waterhouse Canada Inc. now owns 73,470 shares of the company's stock worth $7,313,000 after purchasing an additional 17,196 shares during the period.

CoreWeave News Roundup

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: Strong AI demand and capacity growth support the long-term outlook. Bank of America maintained a Buy rating and $140 price target, forecasting a 168% year-over-year increase in third-quarter revenue as new data-center capacity comes online. CoreWeave also introduced its Zero Trust AI Framework and Physical AI Launchables, products intended to attract enterprise, robotics, and autonomous-vehicle customers. Bank of America capacity expansion article
• Positive Sentiment: Supportive industry comments and analyst views offer a counterpoint. Nvidia CEO Jensen Huang and SpaceX executives have highlighted strong demand for AI computing, while Blackstone’s Jon Gray said CoreWeave can work through its financing challenges. Some analysts and market commentators also argue that the selloff is excessive. Blackstone CoreWeave financing article
• Neutral Sentiment: Analyst opinions are diverging. Goldman Sachs reportedly sent a more favorable signal, while Bernstein downgraded the stock and cut its price target. This disagreement is increasing volatility ahead of CoreWeave’s expected early-November third-quarter results.
• Negative Sentiment: Financing risk is weighing most heavily on CRWV. Bernstein estimated CoreWeave may face a $76 billion funding gap, while Bank of America said financing needs remain a key question. The company’s bonds have traded at distressed yields, and credit-default swap spreads reportedly exceeded 1,000 basis points. High leverage, rising borrowing costs, and uncertainty over when AI infrastructure investments will generate cash flow are driving concerns about shareholder dilution or default risk. CoreWeave downgrade and financing worries article
• Negative Sentiment: Broader market conditions are adding pressure. Higher interest rates, elevated oil prices, concerns about an AI spending bubble, potential excess computing capacity, and customer-concentration risks are making investors less willing to pay for highly leveraged growth companies. CoreWeave’s debt-to-equity ratio of 5.53 further magnifies the risk.

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.

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