CoreWeave (NASDAQ:CRWV) Shares Gap Up - Here's What Happened

Key Points

• CoreWeave shares surged: The stock opened at $55.97 after closing at $48.73 and was last trading at $58.71, up about 23.5%.
• Results and outlook beat expectations: Revenue climbed 168% year over year to $3.66 billion, and the company raised its full-year revenue outlook to about $13.3 billion; its backlog stood at roughly $132.5 billion.
• Financing remains a major risk: CoreWeave warned quarterly interest costs could reach $1.15 billion, while its data-center expansion depends on continued financing amid high debt and borrowing costs.

Shares of CoreWeave Inc. (NASDAQ:CRWV - Get Free Report) gapped up before the market opened on Wednesday. The stock had previously closed at $48.73, but opened at $55.97. CoreWeave shares last traded at $58.71, with a volume of 40,296,310 shares traded.

CoreWeave News Roundup

Here's some of the latest news about CRWV:

• Positive Sentiment: Q3 results and guidance beat expectations: Revenue rose 168% year over year to $3.66 billion, and CoreWeave raised its full-year revenue outlook to about $13.3 billion. Its roughly $132.5 billion backlog signals significant demand ahead. Reuters earnings report
• Positive Sentiment: New product broadens its platform: CoreWeave launched a managed PostgreSQL database service within its cloud platform, giving AI customers another tool alongside GPU training and inference services. CoreWeave Database announcement
• Negative Sentiment: Debt and interest expense remain key risks: The company warned quarterly interest costs could reach $1.15 billion. Its capital-intensive data-center expansion depends on continued access to financing, leaving the stock exposed to high borrowing costs and tighter credit. Invezz financing report

Wall Street Analyst Weigh In

CRWV has been the subject of several research reports. BTIG Research started coverage on CoreWeave in a research report on Wednesday, July 22nd. They issued a "buy" rating for the company. Robert W. Baird upped their price target on CoreWeave from $100.00 to $130.00 and gave the company an "outperform" rating in a report on Wednesday, August 12th. Morgan Stanley cut their target price on CoreWeave from $99.00 to $70.00 and set an "equal weight" rating on the stock in a research report on Friday, October 23rd. BNP Paribas Exane reiterated an "outperform" rating and issued a $117.00 price target on shares of CoreWeave in a research report on Monday, October 19th. Finally, Jefferies Financial Group reaffirmed a "buy" rating on shares of CoreWeave in a research report on Thursday, October 15th. Twenty-seven analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat, CoreWeave currently has an average rating of "Moderate Buy" and an average target price of $118.67.

CoreWeave Trading Up 23.5%

The stock has a market cap of $27.62 billion, a PE ratio of -16.50 and a beta of 7.71. The company has a quick ratio of 0.46, a current ratio of 0.46 and a debt-to-equity ratio of 5.53. The business's fifty day moving average is $74.13 and its 200 day moving average is $89.44.

CoreWeave (NASDAQ:CRWV - Get Free Report) last posted its earnings results on Tuesday, August 11th. The company reported ($1.14) EPS for the quarter, topping analysts' consensus estimates of ($1.52) by $0.38. The company had revenue of $2.58 billion for the quarter. CoreWeave had a negative return on equity of 47.95% and a negative net margin of 25.41%. The firm's revenue for the quarter was up 112.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.27) earnings per share. As a group, analysts predict that CoreWeave Inc. will post -4.99 earnings per share for the current year.

Insider Activity

In other CoreWeave news, insider Jeff Baker sold 6,670 shares of the firm's stock in a transaction on Thursday, October 29th. The stock was sold at an average price of $61.16, for a total transaction of $407,937.20. Following the completion of the transaction, the insider owned 14,170 shares of the company's stock, valued at approximately $866,637.20. This trade represents a 32.01% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Jonathan Jones sold 21,569 shares of CoreWeave stock in a transaction dated Tuesday, October 13th. The stock was sold at an average price of $77.42, for a total value of $1,669,871.98. Following the sale, the executive owned 5,392 shares of the company's stock, valued at approximately $417,448.64. This represents a 80.00% decrease in their position. The SEC filing for this sale provides additional information. 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. Insiders have sold 3,727,018 shares of company stock worth $337,495,407 in the last quarter. 24.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On CoreWeave

Several institutional investors and hedge funds have recently bought and sold shares of CRWV. MassMutual Private Wealth & Trust FSB increased its position in CoreWeave by 241.1% during the 3rd quarter. MassMutual Private Wealth & Trust FSB now owns 307 shares of the company's stock worth $27,000 after purchasing an additional 217 shares in the last quarter. Essential Partners LLC acquired a new stake in shares of CoreWeave in the second quarter valued at about $30,000. Cassaday & Co Wealth Management LLC purchased a new stake in shares of CoreWeave during the 1st quarter valued at about $31,000. Burnham & Co LLC purchased a new stake in shares of CoreWeave during the 2nd quarter valued at about $32,000. Finally, Allied Private Wealth LLC acquired a new position in CoreWeave during the 2nd quarter worth approximately $40,000.

About CoreWeave

CoreWeave is a cloud computing company that provides infrastructure for artificial intelligence, machine learning, and other compute-intensive workloads. Its services include access to graphics processing units (GPUs), cloud storage and networking, and software tools for deploying and managing workloads. The company was founded in 2017 as a cryptocurrency mining business and later shifted its focus to cloud computing. CoreWeave is headquartered in Livingston, New Jersey, and operates data center infrastructure in the United States and Europe, serving customers that need large-scale computing resources.

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