CoreWeave (NASDAQ:CRWV) Shares Down 12.1% – Here’s Why

CoreWeave Inc. (NASDAQ:CRWV)’s stock price traded down 12.1% during mid-day trading on Tuesday . The company traded as low as $93.15 and last traded at $93.17. Approximately 36,996,724 shares changed hands during trading, an increase of 28% from the average session volume of 28,928,979 shares. The stock had previously closed at $106.00.

CoreWeave News Roundup

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: Bank of America said CoreWeave and Nebius are benefiting from stronger pricing dynamics, supporting the outlook for revenue growth and profitability as demand for AI compute remains strong. CoreWeave and Nebius take advantage of stronger pricing dynamics: BofA
• Positive Sentiment: CoreWeave’s rapid, consistent sequential revenue growth continues to compare favorably with the more mature and cyclical revenue profile of Apple, highlighting the company’s expansion potential. Apple vs. CoreWeave: Comparing Revenue Trends
• Positive Sentiment: David Tepper’s second-quarter filing showed a significant CoreWeave position, providing a high-profile institutional endorsement of the AI infrastructure opportunity. Separately, one analyst raised the stock’s price target to $159. David Tepper’s Latest AI Bet Is CoreWeave CoreWeave Price Target Raised to $159
• Neutral Sentiment: Comparisons with Amazon and Nvidia are intensifying debate over which companies will capture the economics of the AI buildout. CoreWeave offers faster growth, but the cloud giants have greater scale, balance-sheet strength and customer reach. CoreWeave Vs. Cloud Giants
• Neutral Sentiment: Recent 13F filings present mixed institutional signals: Tepper added or held a notable position, while Viking Global exited CoreWeave. These filings reflect past-quarter activity and do not establish a clear near-term consensus. Viking Global Bets Big on SpaceX While Ditching CoreWeave
• Negative Sentiment: Neocloud stocks are selling off as investors fear AI companies may be overspending on data centers and compute capacity. A sharp rise in long-term Treasury yields is adding pressure to high-growth companies whose valuations depend on future cash flows. Neocloud Stocks Plummet on Rising Overspend Fears
• Negative Sentiment: CoreWeave is particularly exposed to higher financing costs because of its heavy debt load. Analysts and investors remain concerned that aggressive expansion could require additional borrowing, potentially limiting future earnings and cash flow. CoreWeave Sinks as Rising Yields Test Its Leverage CoreWeave: The AI Debt Machine Starts Turning
• Negative Sentiment: Viking Global’s exit and a recent rating downgrade reinforce concerns about valuation, execution and debt financing, even though another analysis argued that those financing worries may be overstated. CoreWeave: Overblown Debt Financing Concerns

Wall Street Analysts Forecast Growth

CRWV has been the subject of several research reports. Citigroup lifted their price target on CoreWeave from $142.00 to $159.00 and gave the stock a “buy” rating in a report on Friday. BTIG Research assumed coverage on CoreWeave in a report on Wednesday, July 22nd. They issued a “buy” rating on the stock. Cantor Fitzgerald set a $176.00 price objective on CoreWeave and gave the stock an “overweight” rating in a research report on Wednesday, August 12th. BNP Paribas Exane initiated coverage on CoreWeave in a report on Tuesday, June 2nd. They set an “outperform” rating and a $192.00 target price for the company. Finally, Wells Fargo & Company boosted their target price on shares of CoreWeave from $155.00 to $160.00 and gave the company an “overweight” rating in a research report on Wednesday, August 12th. Twenty-two analysts have rated the stock with a Buy rating, eleven have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $138.72.

CoreWeave Stock Down 12.0%

The firm has a 50-day simple moving average of $90.57 and a 200 day simple moving average of $94.97. 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 capitalization of $42.82 billion, a P/E ratio of -25.57 and a beta of 7.45.

CoreWeave (NASDAQ:CRWV) last posted its earnings results on Tuesday, August 11th. The company reported ($1.14) EPS for the quarter, topping the consensus estimate of ($1.52) by $0.38. CoreWeave had a negative net margin of 25.41% and a negative return on equity of 47.95%. The business had revenue of $2.58 billion for the quarter. During the same quarter in the prior year, the business earned ($0.27) earnings per share. The firm’s quarterly revenue was up 112.5% on a year-over-year basis. On average, equities research analysts forecast that CoreWeave Inc. will post -5.69 EPS for the current year.

Insider Transactions at CoreWeave

In related news, major shareholder Magnetar Financial Llc sold 307,131 shares of the firm’s stock in a transaction on 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 completion of the transaction, the insider directly owned 220,810 shares of the company’s stock, valued at $24,013,087.50. This trade represents a 58.18% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Michael N. Intrator sold 278,560 shares of CoreWeave stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $97.43, for a total value of $27,140,100.80. Following the transaction, the chief executive officer directly owned 3,138,612 shares in the company, valued at $305,794,967.16. The trade was a 8.15% decrease in their ownership of the stock. 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. Over the last 90 days, insiders have sold 9,059,405 shares of company stock worth $894,991,384. Company insiders own 24.20% of the company’s stock.

Institutional Investors Weigh In On CoreWeave

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

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.