CoreWeave (NASDAQ:CRWV) Shares Up 2.1% - Time to Buy?

Key Points

• CoreWeave shares rose 2.1% to $88.04, while quarterly revenue surged 112.5% year over year to $2.58 billion and the company’s adjusted loss beat analyst expectations.
• Demand prospects remain strong, supported by expanded partnerships with Rescale and Hudson River Trading, as well as multibillion-dollar AI contracts. Analysts maintain a consensus “Moderate Buy” rating with a $141.90 price target.
• Risks remain significant: CoreWeave has a 5.53 debt-to-equity ratio, negative profitability, high interest costs and a 0.46 current ratio; competition, rising bond yields, energy regulations and heavy insider selling could further pressure the stock.

CoreWeave Inc. (NASDAQ:CRWV - Get Free Report) shares rose 2.1% on Tuesday . The stock traded as high as $90.25 and last traded at $88.04. 13,214,021 shares changed hands during trading, a decline of 54% from the average daily volume of 28,679,664 shares. The stock had previously closed at $86.25.

Key CoreWeave News

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: CoreWeave expanded its partnership with Rescale, enabling customers in aerospace, automotive, energy, life sciences and manufacturing to run demanding AI and engineering simulations on CoreWeave Cloud. The agreement broadens CoreWeave’s customer reach beyond major technology companies. Rescale Expands Cloud Ecosystem with CoreWeave for Engineering and AI Workloads
• Positive Sentiment: Reports highlighted a new multibillion-dollar AI deal and CoreWeave’s multiyear agreement with quantitative trading firm Hudson River Trading, which will use GPU capacity for AI models and trading systems. The contracts support confidence in demand from financial-services customers. CoreWeave just landed a multibillion-dollar AI deal CoreWeave Lands AI Cloud Deal As Data Center Rules Tighten
• Positive Sentiment: CoreWeave’s inclusion in coverage of a newly created “neocloud” investment theme increases visibility for specialized AI-compute providers and reinforces the broader investor appetite for companies that rent GPU infrastructure.
• Positive Sentiment: Truist reportedly sees substantial upside for CRWV despite rising chip costs, while recent earnings showed revenue growth of more than 100% year over year and an earnings-per-share loss narrower than expected. CoreWeave shares are set to nearly double even as chip costs rise, Truist says
• Neutral Sentiment: Rumble’s CEO named CoreWeave and Nebius as competitive targets, signaling that more companies may seek to challenge established AI-cloud providers. Increased competition could expand the market but pressure pricing and customer retention.
• Negative Sentiment: Analysts continue to flag CoreWeave’s heavy debt load, negative profitability and high interest expense. Its debt-to-equity ratio is 5.53, and critics argue interest costs could outpace operating income, limiting the benefit of strong revenue growth.
• Negative Sentiment: Rising global bond yields are pressuring high-growth technology valuations and increasing CoreWeave’s financing burden. New state-level data-center energy and transparency rules could also slow expansion or raise costs.
• Negative Sentiment: One bearish analysis argues that NVIDIA’s financing initiatives could make GPU access cheaper and more direct for customers, potentially commoditizing part of CoreWeave’s competitive advantage.

Wall Street Analyst Weigh In

Several analysts recently weighed in on the company. DA Davidson reaffirmed a "neutral" rating and issued a $100.00 price objective (down from $175.00) on shares of CoreWeave in a research note on Monday, May 18th. TD Cowen raised shares of CoreWeave to a "buy" rating in a report on Wednesday, July 22nd. Raymond James Financial downgraded shares of CoreWeave from a "moderate buy" rating to a "hold" rating in a research note on Wednesday, July 22nd. BTIG Research began coverage on shares of CoreWeave in a research report on Wednesday, July 22nd. They set a "buy" rating for the company. Finally, Roth Capital set a $145.00 price objective on shares of CoreWeave in a research note on Thursday, August 13th. Twenty-one equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $141.90.

CoreWeave Trading Up 2.1%

The company has a debt-to-equity ratio of 5.53, a current ratio of 0.46 and a quick ratio of 0.46. The stock has a market cap of $40.40 billion, a P/E ratio of -24.12 and a beta of 7.45. The firm's fifty day moving average price is $89.59 and its two-hundred day moving average price is $94.76.

CoreWeave (NASDAQ:CRWV - Get Free Report) last posted its quarterly earnings data on Tuesday, August 11th. The company reported ($1.14) earnings per share for the quarter, topping the consensus estimate of ($1.52) by $0.38. The company had revenue of $2.58 billion for the quarter. CoreWeave had a negative net margin of 25.41% and a negative return on equity of 47.95%. The firm's revenue for the quarter was up 112.5% on a year-over-year basis. During the same quarter last year, the company posted ($0.27) earnings per share. As a group, equities research analysts forecast that CoreWeave Inc. will post -5.17 EPS for the current year.

Insider Activity at CoreWeave

In other CoreWeave news, major shareholder Magnetar Financial Llc sold 307,131 shares of the firm's stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $108.75, for a total transaction of $33,400,496.25. Following the sale, the insider owned 220,810 shares in the company, valued at $24,013,087.50. This trade represents a 58.18% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Jack D. Cogen sold 642,307 shares of the company's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $106.32, for a total value of $68,290,080.24. Following the completion of the transaction, the director owned 9,040,829 shares of the company's stock, valued at $961,220,939.28. The trade was a 6.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 8,235,201 shares of company stock valued at $802,446,933 over the last 90 days. 24.20% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. raised its stake in CoreWeave by 275.6% during the 4th quarter. Vanguard Group Inc. now owns 27,920,979 shares of the company's stock valued at $1,999,421,000 after buying an additional 20,487,478 shares during the last quarter. Legal & General Group Plc lifted its holdings in CoreWeave by 8,455.6% in the fourth quarter. Legal & General Group Plc now owns 611,301 shares of the company's stock valued at $43,775,000 after acquiring an additional 604,156 shares during the period. Bank of New York Mellon Corp boosted its position in CoreWeave by 12.6% in the first quarter. Bank of New York Mellon Corp now owns 353,702 shares of the company's stock worth $27,401,000 after purchasing an additional 39,599 shares during the last quarter. California State Teachers Retirement System boosted its position in CoreWeave by 25.5% in the first quarter. California State Teachers Retirement System now owns 320,011 shares of the company's stock worth $24,791,000 after purchasing an additional 64,960 shares during the last quarter. Finally, Ardmore Road Asset Management LP grew its stake in shares of CoreWeave by 3,410.0% during the 1st quarter. Ardmore Road Asset Management LP now owns 351,000 shares of the company's stock valued at $27,192,000 after purchasing an additional 341,000 shares during the period.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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