CoreWeave (NASDAQ:CRWV) Stock Price Down 2.9% - Here's Why

Key Points

• CoreWeave shares fell 2.9% on Wednesday, trading as low as $95.10 after closing at $98.45 the prior day. Volume was below average, with about 17.3 million shares changing hands versus a daily average of 28.2 million.
• Investor sentiment is being shaped by a mix of strong AI demand and financing concerns. The company recently signed a $6 billion AI cloud deal with Jane Street, but reports that it may tap high-yield bond markets and continued insider selling are weighing on the stock.
• Despite recent weakness, analysts remain broadly positive, with 20 Buy ratings and a consensus Moderate Buy rating. CoreWeave also posted 111.6% year-over-year revenue growth last quarter, though it still missed earnings expectations and remains unprofitable.

Shares of CoreWeave Inc. (NASDAQ:CRWV - Get Free Report) dropped 2.9% on Wednesday . The stock traded as low as $95.10 and last traded at $95.61. Approximately 17,331,074 shares changed hands during mid-day trading, a decline of 38% from the average daily volume of 28,171,275 shares. The stock had previously closed at $98.45.

More CoreWeave News

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: CoreWeave’s recent $6 billion AI cloud agreement with Jane Street, which includes a $1 billion equity investment, reinforces demand for its GPU cloud infrastructure and supports the long-term growth narrative. CoreWeave Jane Street AI Cloud Pact Reframes Growth And Valuation Story
• Positive Sentiment: Analysts remain broadly constructive on CoreWeave, with many rating the stock a Buy and pointing to upside versus current levels, reflecting optimism around its AI infrastructure role. Why CoreWeave (CRWV) is a Strategically Important firm in AI Infrastructure?
• Neutral Sentiment: Despite the recent volatility, CoreWeave still has a large AI-related backlog and strong revenue growth, which helps support the bull case over the longer term. CoreWeave Stock Tumbles 34% in a Year: What Should Investors Do Now?
• Negative Sentiment: Reports that CoreWeave is exploring euro- and dollar-denominated high-yield bonds suggest the company may be leaning on debt markets to fund expansion, which can worry investors about leverage and future interest costs. CoreWeave Considers High Yield Bonds As Insider Sales And Volatility Mount
• Negative Sentiment: News that CoreWeave co-founders have sold roughly $2.3 billion of stock since the IPO is weighing on sentiment, as investors often view heavy insider selling as a lack of confidence at current prices. CoreWeave founders sold $2.3B in planned stock sales since IPO: report

Analysts Set New Price Targets

CRWV has been the subject of several recent research reports. Citizens Jmp restated a "market outperform" rating and issued a $180.00 price objective on shares of CoreWeave in a report on Friday, February 27th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $135.00 price objective on shares of CoreWeave in a report on Friday, May 8th. Citigroup lifted their price objective on CoreWeave from $155.00 to $158.00 and gave the company a "buy" rating in a report on Thursday, May 14th. BNP Paribas Exane started coverage on CoreWeave in a research note on Tuesday, June 2nd. They issued an "outperform" rating and a $192.00 target price on the stock. Finally, Wolfe Research started coverage on CoreWeave in a research note on Thursday, April 16th. They issued an "outperform" rating and a $150.00 target price on the stock. Twenty research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, CoreWeave presently has a consensus rating of "Moderate Buy" and an average target price of $131.52.

CoreWeave Price Performance

The firm has a market cap of $42.79 billion, a PE ratio of -30.74 and a beta of 7.14. The company has a quick ratio of 0.31, a current ratio of 0.31 and a debt-to-equity ratio of 3.68. The stock has a 50 day moving average price of $106.51 and a two-hundred day moving average price of $92.00.

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 analysts' consensus estimates 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 quarter last year, the firm earned ($0.60) EPS. The business's revenue was up 111.6% on a year-over-year basis. As a group, equities analysts expect that CoreWeave Inc. will post -4.57 earnings per share for the current year.

Insider Buying and Selling at CoreWeave

In other news, insider Brian M. Venturo sold 15,385 shares of the business's stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $112.51, for a total transaction of $1,730,966.35. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jack D. Cogen sold 271,153 shares of the business's stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $106.97, for a total value of $29,005,236.41. Following the sale, the director owned 8,769,676 shares in the company, valued at $938,092,241.72. The trade was a 3.00% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 27,161,017 shares of company stock valued at $3,069,845,030.

Institutional Investors Weigh In On CoreWeave

A number of large investors have recently bought and sold shares of the company. Parallel Advisors LLC boosted its position in CoreWeave by 4.0% in the first quarter. Parallel Advisors LLC now owns 2,340 shares of the company's stock valued at $181,000 after buying an additional 91 shares during the last quarter. Pathway Wealth Management LLC boosted its position in CoreWeave by 2.9% in the first quarter. Pathway Wealth Management LLC now owns 3,593 shares of the company's stock valued at $278,000 after buying an additional 100 shares during the last quarter. Azzad Asset Management Inc. ADV boosted its position in CoreWeave by 2.1% in the first quarter. Azzad Asset Management Inc. ADV now owns 5,020 shares of the company's stock valued at $389,000 after buying an additional 104 shares during the last quarter. Hazlett Burt & Watson Inc. boosted its position in CoreWeave by 34.7% in the fourth quarter. Hazlett Burt & Watson Inc. now owns 462 shares of the company's stock valued at $33,000 after buying an additional 119 shares during the last quarter. Finally, Cullen Frost Bankers Inc. boosted its position in CoreWeave by 45.8% in the fourth quarter. Cullen Frost Bankers Inc. now owns 385 shares of the company's stock valued at $28,000 after buying an additional 121 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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