CoreWeave (NASDAQ:CRWV) Shares Down 4.6% - Should You Sell?

Key Points

• CoreWeave shares fell 4.6% on the day, with heavy trading volume but continued volatility as investors weighed the company’s sharp run-up against concerns about valuation, leverage, and execution risk.
• The company continues to win new AI infrastructure business, including a five-year $335 million storage deal with Backblaze and a new co-location agreement with Conapto to expand AI cloud capacity in Sweden.
• Despite strong revenue growth of 111.6% year over year, CoreWeave recently posted a wider-than-expected loss, and insiders have sold a large amount of stock over the past 90 days, adding to investor caution.

CoreWeave Inc. (NASDAQ:CRWV - Get Free Report)'s stock price was down 4.6% on Wednesday . The stock traded as low as $98.25 and last traded at $100.8670. 21,195,553 shares changed hands during trading, a decline of 26% from the average daily volume of 28,500,840 shares. The stock had previously closed at $105.72.

Key CoreWeave News

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: CoreWeave announced a new co-location agreement with Conapto to expand AI cloud capacity in Stockholm, giving it two campuses in Sweden powered by renewable energy and adding more European reach for its AI infrastructure platform. CoreWeave Partners With Conapto to Expand AI Cloud Capacity in Sweden Powered by Renewable Energy
• Positive Sentiment: Backblaze disclosed a five-year, $335 million storage agreement with CoreWeave, highlighting continued customer demand and validating CoreWeave’s growth in AI-related infrastructure spending. Backblaze Announces Five-Year Multi-Exabyte Data Storage Agreement with CoreWeave
• Positive Sentiment: CoreWeave was highlighted as a stock to watch in the “Vera Rubin” chip cycle, with articles pointing to its AI cloud growth, large backlog, and NVIDIA ties as reasons investors may see further upside. CoreWeave vs. Nebius: Which AI Infrastructure Stock Has More Upside?
• Positive Sentiment: Jim Cramer said he remains a believer in CoreWeave, adding another supportive bullish commentary for the stock. Jim Cramer Shares Why He’s A Believer In CoreWeave (CRWV)
• Neutral Sentiment: CoreWeave was mentioned in coverage about joining the Nasdaq-100, which can create passive buying demand, but the article provided limited direct company-specific details. SpaceX’s $20B Bond, Trump’s Quantum Executive Order, CRWV and NBIS Join the Nasdaq 100
• Negative Sentiment: Despite the positive deal flow, recent commentary noted CoreWeave stock has been falling and remains volatile, likely reflecting investor concern about valuation, leverage, and execution risk. CoreWeave stock is falling Tuesday: What's driving the action?
• Negative Sentiment: Investors may also be reacting to CoreWeave’s weak balance sheet and recent earnings miss, with the company still posting losses and carrying elevated debt compared with its current assets.

Analyst Ratings Changes

A number of analysts recently issued reports on CRWV shares. Needham & Company LLC reissued a "hold" rating on shares of CoreWeave in a research note on Friday, February 27th. JPMorgan Chase & Co. lifted their price target on shares of CoreWeave from $90.00 to $105.00 and gave the company a "neutral" rating in a research note on Friday, May 8th. Oppenheimer upped their price target on shares of CoreWeave from $140.00 to $150.00 and gave the company an "outperform" rating in a report on Wednesday, April 29th. Roth Mkm reissued a "buy" rating and set a $150.00 price objective on shares of CoreWeave in a research report on Friday, May 8th. Finally, Bank of America upgraded shares of CoreWeave from a "neutral" rating to a "buy" rating and set a $100.00 price objective on the stock in a report on Tuesday, March 24th. Twenty equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $131.52.

CoreWeave Price Performance

The stock has a market cap of $45.15 billion, a P/E ratio of -32.43 and a beta of 7.14. The company has a 50 day simple moving average of $111.42 and a 200 day simple moving average of $94.42. The company has a current ratio of 0.31, a quick ratio of 0.31 and a debt-to-equity ratio of 3.68.

CoreWeave (NASDAQ:CRWV - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported ($1.40) earnings per share for the quarter, missing the consensus estimate of ($1.17) by ($0.23). CoreWeave had a negative return on equity of 43.07% and a negative net margin of 25.57%.The business had revenue of $2.08 billion for the quarter. During the same period in the prior year, the company earned ($0.60) earnings per share. The firm's quarterly revenue was up 111.6% on a year-over-year basis. Sell-side analysts forecast that CoreWeave Inc. will post -4.57 earnings per share for the current fiscal year.

Insider Activity at CoreWeave

In other news, Director Jack D. Cogen sold 986,540 shares of the stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $107.80, for a total transaction of $106,349,012.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, major shareholder Magnetar Financial Llc sold 1,404,667 shares of the firm's stock in a transaction dated Thursday, April 16th. The shares were sold at an average price of $118.30, for a total value of $166,172,106.10. Following the completion of the transaction, the insider owned 282,570 shares of the company's stock, valued at $33,428,031. The trade was a 83.25% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 27,822,618 shares of company stock valued at $3,156,634,374.

Institutional Trading of CoreWeave

Institutional investors and hedge funds have recently bought and sold shares of the stock. Western Wealth Management LLC bought a new position in CoreWeave in the first quarter valued at approximately $300,000. Empowered Funds LLC raised its stake in shares of CoreWeave by 4.1% during the 1st quarter. Empowered Funds LLC now owns 7,251 shares of the company's stock worth $562,000 after purchasing an additional 288 shares in the last quarter. NewEdge Advisors LLC boosted its holdings in shares of CoreWeave by 22.2% in the 1st quarter. NewEdge Advisors LLC now owns 59,155 shares of the company's stock valued at $4,583,000 after buying an additional 10,731 shares during the last quarter. CTC Alternative Strategies Ltd. bought a new position in shares of CoreWeave in the first quarter valued at $852,000. Finally, Liontrust Investment Partners LLP increased its holdings in CoreWeave by 24.1% during the first quarter. Liontrust Investment Partners LLP now owns 127,752 shares of the company's stock worth $9,897,000 after buying an additional 24,843 shares during the last quarter.

About CoreWeave

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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