CoreWeave (NASDAQ:CRWV) Shares Gap Up – Still a Buy?

CoreWeave Inc. (NASDAQ:CRWV) shares gapped up before the market opened on Thursday . The stock had previously closed at $60.82, but opened at $68.30. CoreWeave shares last traded at $73.2380, with a volume of 10,551,180 shares trading hands.

CoreWeave News Summary

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: Leidos defense partnership expands addressable market: CoreWeave is collaborating with Leidos (NYSE: LDOS) to provide secure, sovereign AI-cloud infrastructure for U.S. defense, national security and intelligence agencies. The agreement could create additional demand for CoreWeave’s GPU capacity and strengthen its position in government AI workloads. Leidos and CoreWeave collaboration
• Positive Sentiment: Revenue expectations remain favorable: Oppenheimer expects second-quarter revenue near the high end of CoreWeave’s $2.45 billion-$2.60 billion guidance range. The outlook supports the company’s rapid AI-cloud expansion story ahead of its next earnings report. CoreWeave revenue outlook
• Neutral Sentiment: Large customer commitments offer visibility but add concentration risk: Meta Platforms (NASDAQ: META) could spend more than $62 billion with CoreWeave and Nebius, including agreements worth up to $35.2 billion for CoreWeave. However, Meta may eventually develop competing cloud services, creating a longer-term competitive risk. Meta spending and competition
• Negative Sentiment: Insider selling is weighing on sentiment: CEO Michael Intrator sold a combined 307,692 shares for roughly $20.5 million, while Jeff Baker sold 6,455 shares to cover tax withholding. The CEO’s sales were made under a pre-arranged Rule 10b5-1 plan, reducing their value as a direct signal, but the size and timing of the transactions have increased selling pressure. CoreWeave insider filing
• Negative Sentiment: Debt and profitability risks remain significant: Reports point to heavy GPU-related borrowing, high capital expenditures and negative earnings. Elevated credit-default-swap pricing has raised concerns about refinancing and a possible debt spiral, particularly given CoreWeave’s debt-to-equity ratio of 3.68 and weak liquidity ratios. CoreWeave credit concerns

Wall Street Analysts Forecast Growth

CRWV has been the subject of several recent analyst reports. Wells Fargo & Company boosted their price target on CoreWeave from $135.00 to $155.00 and gave the stock an “overweight” rating in a research note on Friday, May 8th. Oppenheimer lifted their price objective on CoreWeave from $140.00 to $150.00 and gave the stock an “outperform” rating in a report on Wednesday, April 29th. Barclays reduced their price objective on CoreWeave from $120.00 to $90.00 and set an “equal weight” rating for the company in a report on Tuesday, July 21st. Roth Capital reissued a “buy” rating and issued a $150.00 target price on shares of CoreWeave in a research report on Friday, May 8th. Finally, Mizuho lowered their target price on shares of CoreWeave from $110.00 to $100.00 and set a “neutral” rating on the stock in a research note on Wednesday, July 15th. One analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, fourteen have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $136.25.

CoreWeave Stock Performance

The business’s 50 day simple moving average is $93.58 and its two-hundred day simple moving average is $95.00. The firm has a market capitalization of $32.12 billion, a PE ratio of -23.08 and a beta of 7.17. The company has a current ratio of 0.31, a quick ratio of 0.31 and a debt-to-equity ratio of 3.68.

CoreWeave (NASDAQ:CRWV) last released its quarterly earnings results on Thursday, May 7th. The company reported ($1.40) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($1.17) by ($0.23). CoreWeave had a negative return on equity of 43.07% and a negative net margin of 25.57%.The firm had revenue of $2.08 billion during the quarter. During the same quarter in the prior year, the business posted ($0.60) EPS. CoreWeave’s revenue was up 111.6% on a year-over-year basis. Research analysts expect that CoreWeave Inc. will post -4.57 earnings per share for the current fiscal year.

Insider Buying and Selling at CoreWeave

In other news, insider Brian M. Venturo sold 375,000 shares of the company’s stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $126.78, for a total transaction of $47,542,500.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Magnetar Financial Llc sold 1,202,656 shares of the company’s stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $136.73, for a total transaction of $164,439,154.88. Following the sale, the insider directly owned 245,545 shares of the company’s stock, valued at $33,573,367.85. The trade was a 83.04% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 15,586,735 shares of company stock valued at $1,764,560,965. 24.20% of the stock is owned by company insiders.

Institutional Trading of CoreWeave

Large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its position in shares of 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 acquiring an additional 20,487,478 shares during the period. Proficio Capital Partners LLC increased its stake in shares of CoreWeave by 446,194.0% in 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 in the last quarter. Bank of America Corp DE raised its holdings in CoreWeave by 13.1% in 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 period. Clear Street Group Inc. raised its holdings in 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. lifted its position in CoreWeave by 300.0% during the fourth 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 in the last quarter.

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.