CoreWeave (NASDAQ:CRWV) Shares Down 3.8% - Here's Why

Key Points

• CoreWeave shares fell 3.8% in Tuesday trading, briefly touching $94.82 before last trading near $99.81, on volume slightly above its recent average.
• The company recently closed a $3.1 billion delayed draw term loan, which should give it more funding to expand its AI cloud platform and support customer deployments.
• Despite strong revenue growth, CoreWeave’s latest earnings missed expectations: it reported a loss of $0.89 per share versus an expected loss of $0.61, while revenue rose 110.4% year over year to $1.57 billion.

CoreWeave Inc. (NASDAQ:CRWV - Get Free Report) shares dropped 3.8% during mid-day trading on Tuesday . The stock traded as low as $94.82 and last traded at $99.81. Approximately 29,546,190 shares were traded during trading, an increase of 5% from the average daily volume of 28,226,064 shares. The stock had previously closed at $103.77.

Trending Headlines about CoreWeave

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: CoreWeave closed a $3.1 billion delayed draw term loan facility, giving it more funding to expand its AI cloud platform and support committed customer deployments. The deal also broadens access to GPU-backed financing. CoreWeave Closes $3.1 Billion Loan Facility, Expanding Access to Public Markets for GPU-Backed Financing
• Positive Sentiment: Some commentary still argues CoreWeave looks undervalued, pointing to rapid revenue growth and a very large backlog that could support future expansion. Why CoreWeave Still Looks Undervalued

Analyst Upgrades and Downgrades

CRWV has been the topic of several research reports. Macquarie Infrastructure reissued a "neutral" rating and set a $115.00 target price on shares of CoreWeave in a research note on Tuesday, January 27th. Jefferies Financial Group increased their target price on CoreWeave from $120.00 to $160.00 and gave the stock a "buy" rating in a research note on Monday, May 4th. Bank of America raised CoreWeave from a "neutral" rating to a "buy" rating and set a $100.00 target price on the stock in a research note on Tuesday, March 24th. HC Wainwright reissued a "buy" rating and set a $180.00 target price on shares of CoreWeave in a research note on Monday, March 2nd. Finally, Weiss Ratings reissued a "sell (e+)" rating on shares of CoreWeave in a research note on Monday, May 4th. Nineteen analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, CoreWeave has an average rating of "Moderate Buy" and a consensus target price of $129.63.

CoreWeave Stock Down 3.8%

The firm has a 50 day moving average price of $98.02 and a 200-day moving average price of $91.45. The company has a current ratio of 0.31, a quick ratio of 0.31 and a debt-to-equity ratio of 3.68. The firm has a market cap of $44.67 billion, a PE ratio of -32.09 and a beta of 7.84.

CoreWeave (NASDAQ:CRWV - Get Free Report) last released its earnings results on Thursday, February 26th. The company reported ($0.89) earnings per share for the quarter, missing analysts' consensus estimates of ($0.61) by ($0.28). CoreWeave had a negative return on equity of 43.07% and a negative net margin of 25.57%.The firm had revenue of $1.57 billion for the quarter. The business's revenue for the quarter was up 110.4% compared to the same quarter last year. Research analysts forecast that CoreWeave Inc. will post -4.15 EPS for the current fiscal year.

Insider Activity

In related news, COO Sachin Jain sold 14,750 shares of the company's stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $118.61, for a total transaction of $1,749,497.50. Following the sale, the chief operating officer directly owned 123,058 shares in the company, valued at approximately $14,595,909.38. This represents a 10.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Michael N. Intrator sold 200,000 shares of the company's stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $105.67, for a total transaction of $21,134,000.00. Following the sale, the chief executive officer owned 4,466,501 shares in the company, valued at $471,975,160.67. The trade was a 4.29% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 24,708,631 shares of company stock valued at $2,771,929,486.

Institutional Trading of CoreWeave

Large investors have recently made changes to their positions in the company. Cornerstone Planning Group LLC raised its position in shares of CoreWeave by 272.8% during the 4th quarter. Cornerstone Planning Group LLC now owns 343 shares of the company's stock worth $25,000 after acquiring an additional 251 shares in the last quarter. KERR FINANCIAL PLANNING Corp acquired a new stake in shares of CoreWeave during the 3rd quarter worth about $27,000. Aspect Partners LLC acquired a new stake in shares of CoreWeave during the 3rd quarter worth about $28,000. Cullen Frost Bankers Inc. raised its position in shares of CoreWeave by 45.8% during the 4th quarter. Cullen Frost Bankers Inc. now owns 385 shares of the company's stock worth $28,000 after acquiring an additional 121 shares in the last quarter. Finally, Greenline Wealth Management LLC acquired a new stake in shares of CoreWeave during the 4th quarter worth about $28,000.

CoreWeave Company Profile

CoreWeave is a U.S.-based provider of GPU-accelerated cloud infrastructure designed to support compute-intensive workloads such as artificial intelligence, machine learning, visual effects rendering and other high-performance computing applications. The company supplies access to large fleets of modern GPUs and complementary infrastructure that enable customers to train and deploy large models, run inference at scale, and process graphics-heavy workloads with low latency and high throughput.

CoreWeave’s product offering includes on-demand and dedicated GPU instances, bare-metal servers, private clusters and managed services tailored for enterprise and developer use.

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