CoreWeave (NASDAQ:CRWV) Trading Down 3.5% on Analyst Downgrade

Key Points

• CoreWeave shares fell 3.5% after Mizuho cut its price target to $100 from $110 while keeping a neutral rating. The stock traded as low as $74.81 during the session.
• Analyst sentiment is mixed: several firms still have bullish views, and the broader consensus remains a Moderate Buy with an average price target of $136.42. However, recent target cuts and neutral ratings show growing caution.
• Investor concerns are also being fueled by heavy insider selling and broader worries about competition, margin pressure, and AI infrastructure/chip risks. CoreWeave’s recent earnings also missed estimates despite strong year-over-year revenue growth.

CoreWeave Inc. (NASDAQ:CRWV - Get Free Report) shares were down 3.5% on Wednesday after Mizuho lowered their price target on the stock from $110.00 to $100.00. Mizuho currently has a neutral rating on the stock. CoreWeave traded as low as $74.81 and last traded at $77.12. 23,978,476 shares were traded during mid-day trading, a decline of 15% from the average session volume of 28,361,281 shares. The stock had previously closed at $79.94.

A number of other equities analysts have also commented on the company. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $135.00 price objective on shares of CoreWeave in a research note on Friday, May 8th. Barclays raised their target price on CoreWeave from $106.00 to $120.00 and gave the company an "equal weight" rating in a report on Monday, May 11th. Truist Financial lifted their price target on CoreWeave from $85.00 to $131.00 and gave the stock a "hold" rating in a research report on Friday, May 8th. Oppenheimer upped their price target on CoreWeave from $140.00 to $150.00 and gave the stock an "outperform" rating in a report on Wednesday, April 29th. Finally, DA Davidson reissued a "neutral" rating and issued a $100.00 price objective (down from $175.00) on shares of CoreWeave in a research report on Monday, May 18th. Twenty-one 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's stock. Based on data from MarketBeat.com, CoreWeave has a consensus rating of "Moderate Buy" and an average price target of $136.42.

Insider Buying and Selling

In other news, insider Brian M. Venturo sold 76,912 shares of CoreWeave stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $86.99, for a total transaction of $6,690,574.88. Following the sale, the insider owned 283,985 shares of the company's stock, valued at approximately $24,703,855.15. This trade represents a 21.31% decrease in their position. The sale was disclosed in a document filed 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Michael N. Intrator sold 61,797 shares of the business's stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $86.94, for a total value of $5,372,631.18. Following the sale, the chief executive officer owned 2,876,815 shares in the company, valued at approximately $250,110,296.10. This represents a 2.10% 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. Insiders have sold a total of 24,130,539 shares of company stock valued at $2,824,785,086 over the last three months. 24.20% of the stock is owned by corporate insiders.

Key Stories Impacting CoreWeave

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: Some coverage remains constructive on CoreWeave’s growth potential, pointing to its expanding backlog, AI infrastructure demand, and cloud platform as reasons it could still offer upside versus larger rivals. CRWV vs. MSFT: Which AI Cloud Stock Has More Growth Potential?
• Positive Sentiment: Industry commentary suggests AI companies are increasingly willing to pay for scarce power infrastructure, which could support demand for CoreWeave’s data center capacity over time. Bitcoin Miners Cash In as AI Hits a Power Bottleneck
• Neutral Sentiment: CoreWeave is exploring derivatives to hedge memory-chip price risk, a sign the company is trying to manage input-cost volatility rather than a direct change to near-term fundamentals. AI cloud company CoreWeave explores Wall Street playbook to hedge memory-chip price risk
• Neutral Sentiment: There was also legal/newsflow around a shareholder lawsuit notice, but it appears more procedural than a fundamental business development at this stage. LONG TERM Investors in CoreWeave, Inc. NASDAQ: CRWV shares should contact the Shareholders Foundation in connection with Lawsuit
• Negative Sentiment: Mizuho lowered its price target on CoreWeave NASDAQ: CRWV to $100 from $110 and kept a neutral rating, reinforcing more cautious expectations for the stock. Benzinga report on Mizuho price target cut
• Negative Sentiment: Shares are also under pressure from growing competition and strategic uncertainty, including Meta’s new cloud AI offering and broader concerns about AI infrastructure demand and chip-related risks. CoreWeave (CRWV) Stock Faces Meta Compute Threat As Ark Invest Adds Shares
• Negative Sentiment: Recent reports also note the stock has been trending lower over the past week and month, reflecting investor concern that CoreWeave’s rapid growth story may face margin, competition, and execution challenges. CoreWeave Stock Trending Lower as Meta Cloud Threat, DeepSeek Chip Concerns Mount

Institutional Investors Weigh In On CoreWeave

A number of institutional investors have recently bought and sold shares of the business. Parallel Advisors LLC grew its holdings in CoreWeave by 4.0% during the 1st quarter. Parallel Advisors LLC now owns 2,340 shares of the company's stock worth $181,000 after acquiring an additional 91 shares during the last quarter. Pathway Wealth Management LLC raised its stake in shares of CoreWeave by 2.9% in the first quarter. Pathway Wealth Management LLC now owns 3,593 shares of the company's stock worth $278,000 after acquiring an additional 100 shares during the last quarter. Azzad Asset Management Inc. ADV lifted its position in shares of CoreWeave by 2.1% during the first quarter. Azzad Asset Management Inc. ADV now owns 5,020 shares of the company's stock worth $389,000 after purchasing an additional 104 shares in the last quarter. Hazlett Burt & Watson Inc. lifted its position in shares of CoreWeave by 34.7% during the fourth quarter. Hazlett Burt & Watson Inc. now owns 462 shares of the company's stock worth $33,000 after purchasing an additional 119 shares in the last quarter. Finally, Cullen Frost Bankers Inc. grew its stake in shares of CoreWeave by 45.8% during the fourth quarter. Cullen Frost Bankers Inc. now owns 385 shares of the company's stock valued at $28,000 after purchasing an additional 121 shares during the last quarter.

CoreWeave Trading Down 3.5%

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 firm has a market cap of $34.52 billion, a price-to-earnings ratio of -24.80 and a beta of 7.17. The business's fifty day moving average is $103.54 and its two-hundred day moving average is $95.38.

CoreWeave (NASDAQ:CRWV - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported ($1.40) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.17) by ($0.23). The firm had revenue of $2.08 billion during the quarter. CoreWeave had a negative net margin of 25.57% and a negative return on equity of 43.07%. The firm's revenue was up 111.6% compared to the same quarter last year. During the same quarter last year, the company posted ($0.60) EPS. Equities analysts anticipate that CoreWeave Inc. will post -4.57 earnings per share for the current fiscal year.

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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