CoreWeave (NASDAQ:CRWV) Shares Gap Up - Should You Buy?

Key Points

• CoreWeave shares gapped up on Thursday, opening at $106.56 after closing at $101.28 and last trading around $105.32 on heavy volume.
• The company is showing rapid revenue growth, with quarterly revenue up 110.4% year over year to $1.57 billion, but it still posted a wider-than-expected loss of $0.89 per share and remains deeply unprofitable.
• Investor sentiment is mixed: CoreWeave is expanding into enterprise customers and launched a new infrastructure-backed loan facility, but insider sales, high leverage, and short-selling interest continue to weigh on the stock.

CoreWeave Inc. (NASDAQ:CRWV - Get Free Report) shares gapped up before the market opened on Thursday . The stock had previously closed at $101.28, but opened at $106.56. CoreWeave shares last traded at $105.3180, with a volume of 7,839,287 shares.

Key CoreWeave News

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: CoreWeave is expanding its enterprise business, with financial services emerging as an early customer segment. That suggests the company may be broadening revenue beyond pure AI infrastructure demand. CoreWeave Building Up Enterprise Business, Led By Financial Services
• Positive Sentiment: CoreWeave launched an HPC infrastructure-backed loan facility, which could improve financing flexibility as it continues to fund data center and GPU expansion. CoreWeave Launches Pioneering HPC Infrastructure-Backed Loan Facility
• Neutral Sentiment: Some market commentary still argues the stock may be undervalued, but that view is being offset by questions around leverage, capital intensity, and profitability. Why CoreWeave Still Looks Undervalued
• Neutral Sentiment: CoreWeave’s investor presentation at the J.P. Morgan technology conference keeps the company in focus as traders look for updates on demand trends, financing, and growth strategy. CoreWeave, Inc. (CRWV) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript
• Negative Sentiment: Insider Brian Venturo sold 375,000 shares in a pre-arranged plan, a headline that can weigh on sentiment even if it was not discretionary selling. Brian Venturo Sells 375,000 Shares of CoreWeave NASDAQ: CRWV Stock
• Negative Sentiment: Traders are betting against CoreWeave despite its rapid growth, reflecting skepticism that the company can sustain its momentum and justify its premium valuation. Traders bet against CoreWeave, Nebius, IREN stocks despite strong growth

Analysts Set New Price Targets

CRWV has been the subject of a number of analyst reports. DA Davidson restated a "neutral" rating and set a $100.00 price objective (down from $175.00) on shares of CoreWeave in a research report on Monday. Sanford C. Bernstein raised their price target on shares of CoreWeave from $56.00 to $67.00 and gave the company an "underperform" rating in a research report on Tuesday, April 14th. Wells Fargo & Company increased their price target on CoreWeave from $135.00 to $155.00 and gave the company an "overweight" rating in a research report on Friday, May 8th. Bank of America raised CoreWeave from a "neutral" rating to a "buy" rating and set a $100.00 price target for the company in a research report on Tuesday, March 24th. Finally, Truist Financial boosted their price objective on CoreWeave from $85.00 to $131.00 and gave the stock a "hold" rating in a research report on Friday, May 8th. Nineteen analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $129.63.

CoreWeave Price Performance

The business has a fifty day moving average of $99.10 and a 200-day moving average of $90.96. The firm has a market cap of $48.36 billion, a PE ratio of -34.60 and a beta of 7.84. 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 data on Thursday, February 26th. The company reported ($0.89) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.61) by ($0.28). The company had revenue of $1.57 billion for the quarter. CoreWeave had a negative return on equity of 43.07% and a negative net margin of 25.57%.The business's revenue was up 110.4% on a year-over-year basis. As a group, research analysts predict that CoreWeave Inc. will post -4.15 earnings per share for the current year.

Insider Buying and Selling at CoreWeave

In other CoreWeave news, CEO Michael N. Intrator sold 200,000 shares of the company's stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $105.67, for a total value of $21,134,000.00. Following the transaction, the chief executive officer directly owned 4,466,501 shares in the company, valued at $471,975,160.67. This represents a 4.29% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Magnetar Financial Llc sold 159,168 shares of the firm's stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $129.91, for a total value of $20,677,514.88. Following the transaction, the insider owned 674,490 shares in the company, valued at approximately $87,622,995.90. The trade was a 19.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 24,802,381 shares of company stock worth $2,783,296,673 in the last three months.

Hedge Funds Weigh In On CoreWeave

Several institutional investors and hedge funds have recently bought and sold shares of CRWV. Cornerstone Planning Group LLC grew its position in 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 during the last quarter. KERR FINANCIAL PLANNING Corp bought a new position in CoreWeave during the 3rd quarter worth approximately $27,000. Aspect Partners LLC bought a new position in CoreWeave during the 3rd quarter worth approximately $28,000. Cullen Frost Bankers Inc. lifted its holdings in CoreWeave by 45.8% in the 4th quarter. Cullen Frost Bankers Inc. now owns 385 shares of the company's stock worth $28,000 after buying an additional 121 shares during the period. Finally, Greenline Wealth Management LLC purchased a new stake in CoreWeave in the 4th quarter worth approximately $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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