CoreWeave (NASDAQ:CRWV) Shares Down 18.5% on Disappointing Earnings

CoreWeave Inc. (NASDAQ:CRWV)’s stock price traded down 18.5% during mid-day trading on Friday following a dissappointing earnings announcement. The stock traded as low as $75.66 and last traded at $79.56. 67,500,459 shares traded hands during mid-day trading, an increase of 142% from the average session volume of 27,922,311 shares. The stock had previously closed at $97.63.

The company reported ($0.89) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.61) by ($0.28). The business had revenue of $1.57 billion during the quarter. The business’s revenue for the quarter was up 110.4% compared to the same quarter last year.

Trending Headlines about CoreWeave

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: Strong top‑line results and backlog — Q4 revenue beat and CoreWeave said its order backlog surged (nearly $67B), supporting large future revenue expectations. CoreWeave beats revenue projections as backlog swells to nearly $67 billion
• Positive Sentiment: Strategic capital support — reporting and coverage note continued backing from Nvidia and moves to syndicate large financing tied to long‑term contracts, which can fund builds and limit short‑term dilution. CoreWeave Balances Multi Billion AI Deals With Mounting Legal Challenges
• Neutral Sentiment: Analyst reaction is mixed — some firms raised or reaffirmed price targets (DA Davidson, Cantor Fitzgerald, Citizens Jmp) while others trimmed outlooks; overall coverage remains bullish but cautious on near‑term execution.
• Neutral Sentiment: Management defense — CEO publicly defended accelerating infrastructure buildouts and the spending plan, arguing it’s needed to capture demand; that may reassure some investors but hasn’t quelled margin worries. CoreWeave CEO defends spending plans, tries to combat debt narrative as stock plummets nearly 20%
• Negative Sentiment: Profitability and EPS miss — CoreWeave reported a wider‑than‑expected adjusted loss (EPS miss) and rising interest expense, which pressured the stock despite the revenue beat. CoreWeave slumps after mixed Q4, analysts mull investor concerns over margins
• Negative Sentiment: Surging capex and margin risk — the company signaled it will roughly double capital expenditures to bring capacity online; investors worry margin dilution and slower payback on the large buildouts. CoreWeave shares slump as doubling capital expenditure sparks margin concerns
• Negative Sentiment: Legal overhang — multiple securities‑class actions were filed alleging the company misled investors about infrastructure delays and capacity risks; that increases execution and litigation uncertainty. CoreWeave, Inc. (CRWV) Slapped With Securities Class Action Amid Questions Over Denton Data Center Completion Transparency, $14 Billion Market Cap Loss – Hagens Berman

Analyst Ratings Changes

CRWV has been the topic of several recent analyst reports. JPMorgan Chase & Co. reiterated a “neutral” rating and issued a $110.00 target price on shares of CoreWeave in a report on Tuesday, November 11th. Jefferies Financial Group decreased their target price on shares of CoreWeave from $155.00 to $120.00 and set a “buy” rating on the stock in a research report on Monday, January 5th. Truist Financial lifted their price target on shares of CoreWeave from $84.00 to $85.00 and gave the company a “hold” rating in a research report on Friday. Melius Research set a $140.00 price objective on shares of CoreWeave in a report on Tuesday, November 11th. Finally, Macquarie Infrastructure reaffirmed a “neutral” rating and set a $115.00 price objective on shares of CoreWeave in a research report on Tuesday, January 27th. Seventeen equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $124.34.

Insider Buying and Selling at CoreWeave

In other CoreWeave news, CFO Nitin Agrawal sold 5,383 shares of the stock in a transaction that occurred on Friday, February 20th. The shares were sold at an average price of $90.84, for a total transaction of $488,991.72. Following the sale, the chief financial officer directly owned 173,105 shares in the company, valued at $15,724,858.20. This represents a 3.02% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Kristen J. Mcveety sold 1,677 shares of the firm’s stock in a transaction that occurred on Friday, February 20th. The shares were sold at an average price of $90.83, for a total transaction of $152,321.91. Following the completion of the transaction, the insider directly owned 122,750 shares of the company’s stock, valued at $11,149,382.50. This represents a 1.35% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 4,565,769 shares of company stock valued at $388,715,556.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Family Legacy Financial Solutions LLC raised its position in CoreWeave by 166.7% in the 3rd quarter. Family Legacy Financial Solutions LLC now owns 200 shares of the company’s stock valued at $27,000 after purchasing an additional 125 shares in the last quarter. HighMark Wealth Management LLC purchased a new stake in shares of CoreWeave during the third quarter worth approximately $27,000. OLD Second National Bank of Aurora purchased a new stake in shares of CoreWeave during the third quarter worth approximately $27,000. KERR FINANCIAL PLANNING Corp acquired a new stake in CoreWeave in the third quarter valued at approximately $27,000. Finally, Aspect Partners LLC acquired a new stake in CoreWeave in the third quarter valued at approximately $28,000.

CoreWeave Stock Down 18.5%

The company has a debt-to-equity ratio of 2.66, a current ratio of 0.49 and a quick ratio of 0.49. The company has a market cap of $30.74 billion and a PE ratio of -54.87. The business’s 50 day moving average is $88.95 and its 200-day moving average is $100.37.

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.