CoreWeave (NASDAQ:CRWV) Stock Price Down 4.8% - Should You Sell?

Key Points

• CoreWeave shares fell 4.8% in mid-day trading, with the stock briefly dropping as low as $101.96 before last trading around $106.00. Trading volume was lighter than usual, coming in below the company’s average session volume.
• Despite the pullback, the article highlights several bullish catalysts, including CoreWeave’s recent addition to the Nasdaq-100, a new $335 million storage deal with Backblaze, and continued optimism around its AI cloud infrastructure business.
• Analysts remain broadly constructive, with 20 Buy ratings versus 12 Holds and 2 Sells, and a consensus price target of $131.52. However, the stock also faces concerns from a recent earnings miss, insider selling, and signs of short-term “sell-the-news” volatility.

CoreWeave Inc. (NASDAQ:CRWV - Get Free Report) shares fell 4.8% during mid-day trading on Tuesday . The stock traded as low as $101.96 and last traded at $106.00. 25,020,696 shares were traded during mid-day trading, a decline of 12% from the average session volume of 28,541,010 shares. The stock had previously closed at $111.29.

More CoreWeave News

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: CoreWeave’s addition to the Nasdaq-100 is expected to keep driving mechanical buying from index funds and other passive investors, which can support the stock. Nebius and CoreWeave Join the Nasdaq-100, Triggering Index-Fund Buying in AI-Cloud Names
• Positive Sentiment: Backblaze’s new five-year, $335 million storage deal with CoreWeave highlights strong demand for CoreWeave’s AI cloud ecosystem and large-scale infrastructure needs. Backblaze Announces Five-Year Multi-Exabyte Data Storage Agreement with CoreWeave
• Positive Sentiment: Articles highlighting CoreWeave’s massive backlog, rapid revenue growth, and NVIDIA ties reinforce the bullish case that the company remains a major AI infrastructure beneficiary. CoreWeave vs. Nebius: Which AI Infrastructure Stock Has More Upside?
• Positive Sentiment: Jim Cramer’s bullish comments may add near-term sentiment support by keeping CoreWeave in front of retail investors as a favored AI stock. Jim Cramer Shares Why He’s A Believer In CoreWeave (CRWV)
• Neutral Sentiment: CoreWeave also announced a sponsorship deal with BattleBots, which boosts brand visibility but is unlikely to materially affect near-term financial results. CoreWeave Named Official AI Cloud Partner of BattleBots
• Negative Sentiment: Some recent trading showed “sell-the-news” behavior after the Nasdaq-100 debut, suggesting short-term volatility and profit-taking may weigh on shares even amid bullish fundamentals. CoreWeave Sinks 5%, Nebius Dips as AI Cloud Stocks Sell the News on Their NASDAQ 100 Debut

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the stock. Mizuho lifted their price target on shares of CoreWeave from $105.00 to $110.00 and gave the company a "neutral" rating in a research note on Friday, May 8th. Jefferies Financial Group boosted their price objective on shares of CoreWeave from $120.00 to $160.00 and gave the company a "buy" rating in a research report on Monday, May 4th. HC Wainwright reaffirmed a "buy" rating and issued a $180.00 target price on shares of CoreWeave in a research note on Monday, March 2nd. JPMorgan Chase & Co. increased their target price on CoreWeave from $90.00 to $105.00 and gave the stock a "neutral" rating in a report on Friday, May 8th. Finally, BNP Paribas Exane initiated coverage on CoreWeave in a research note on Tuesday, June 2nd. They issued an "outperform" rating and a $192.00 price target on the stock. Twenty analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $131.52.

CoreWeave Trading Down 4.8%

The company has a debt-to-equity ratio of 3.68, a current ratio of 0.31 and a quick ratio of 0.31. The business's 50-day moving average is $111.34 and its two-hundred day moving average is $94.23. The firm has a market cap of $47.44 billion, a P/E ratio of -34.08 and a beta of 7.14.

CoreWeave (NASDAQ:CRWV - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported ($1.40) EPS 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 quarter in the previous year, the business earned ($0.60) earnings per share. CoreWeave's quarterly revenue was up 111.6% on a year-over-year basis. As a group, analysts predict that CoreWeave Inc. will post -4.57 earnings per share for the current fiscal year.

Insider Buying and Selling at CoreWeave

In related news, insider Brian M. Venturo sold 76,924 shares of the stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $118.48, for a total transaction of $9,113,955.52. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Brannin Mcbee sold 52,500 shares of the firm's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $107.30, for a total value of $5,633,250.00. 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. Insiders have sold a total of 27,905,074 shares of company stock valued at $3,163,836,081 in the last ninety days.

Hedge Funds Weigh In On CoreWeave

A number of institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its position in shares of CoreWeave by 275.6% in the 4th quarter. Vanguard Group Inc. now owns 27,920,979 shares of the company's stock valued at $1,999,421,000 after acquiring an additional 20,487,478 shares during the period. Proficio Capital Partners LLC raised its holdings in shares of CoreWeave by 446,194.0% in the 3rd quarter. Proficio Capital Partners LLC now owns 17,851,760 shares of the company's stock valued at $2,443,013,000 after purchasing an additional 17,847,760 shares during the period. Bank of America Corp DE raised its holdings in shares of CoreWeave by 13.1% in the 1st quarter. Bank of America Corp DE now owns 5,652,129 shares of the company's stock valued at $437,870,000 after purchasing an additional 653,398 shares during the period. Clear Street Group Inc. lifted its stake in CoreWeave by 57.2% in the 4th quarter. Clear Street Group Inc. now owns 4,653,815 shares of the company's stock valued at $333,260,000 after purchasing an additional 1,692,916 shares during the last quarter. Finally, Alyeska Investment Group L.P. grew its holdings in CoreWeave by 300.0% during the fourth quarter. Alyeska Investment Group L.P. now owns 4,000,000 shares of the company's stock worth $286,440,000 after purchasing an additional 3,000,000 shares during the period.

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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