CoreWeave Inc. (NASDAQ:CRWV – Get Free Report) rose 5.6% during mid-day trading on Monday. The stock traded as high as $50.10 and last traded at $48.98. 47,663,333 shares were traded during trading, an increase of 48% from the average session volume of 32,202,916 shares. The stock had previously closed at $46.40.
CoreWeave News Summary
Here are the key news stories impacting CoreWeave this week:
- Positive Sentiment: CoreWeave signed a multi-year agreement to provide Wayve with cloud-computing capacity and Blackwell AI infrastructure for autonomous-driving development. The deal adds a “physical AI” customer and could support demand for its computing services. CoreWeave lands multi-year deal to provide Wayve with cloud computing power
- Neutral Sentiment: Investors are awaiting CoreWeave’s Q3 report, with coverage highlighting strong expected revenue growth but also substantial interest expense. Results and management’s outlook may clarify whether growth can offset the costs of financing its expansion. CoreWeave Q3 earnings: 159% revenue growth vs $900M quarterly interest on Tuesday
- Negative Sentiment: Credit risk is weighing on the outlook: reports say yields on CoreWeave bonds have risen above 15% and, in some cases, 16%–17%. That signals lenders are demanding a high return and raises concern about the cost and availability of funding for the company’s capital-intensive expansion. CoreWeave confronts ‘doom cycle’ narrative as neocloud credit risk overshadows growth
- Negative Sentiment: Texas data-center politics are another risk. CoreWeave has reached out to the governor-elect on community concerns, but coverage suggests that unresolved questions around infrastructure and local impacts could affect project development. CoreWeave left one thing out of its friendly letter to Texas
- Negative Sentiment: Rosenblatt and Wells Fargo cut their price targets, to $160 and $115 respectively, although both retained bullish ratings. The cuts temper the positive signal from those recommendations. Wells Fargo analyst recommendations
Analysts Set New Price Targets
Several analysts have commented on the stock. BNP Paribas Exane restated an “outperform” rating and issued a $117.00 price objective on shares of CoreWeave in a report on Monday, October 19th. BTIG Research initiated coverage on CoreWeave in a report on Wednesday, July 22nd. They set a “buy” rating on the stock. Morgan Stanley decreased their target price on CoreWeave from $99.00 to $70.00 and set an “equal weight” rating for the company in a research report on Friday, October 23rd. Rosenblatt Securities decreased their target price on CoreWeave from $250.00 to $160.00 and set a “buy” rating for the company in a research report on Monday. Finally, UBS Group lowered their target price on CoreWeave from $120.00 to $105.00 and set a “buy” rating for the company in a research note on Friday, October 23rd. Twenty-seven analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $125.76.
Read Our Latest Stock Analysis on CRWV
CoreWeave Stock Performance
The company has a debt-to-equity ratio of 5.53, a quick ratio of 0.46 and a current ratio of 0.46. The stock has a market capitalization of $22.48 billion, a P/E ratio of -13.42 and a beta of 7.71. The business has a 50-day moving average price of $75.56 and a 200 day moving average price of $89.88.
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, beating analysts’ consensus estimates of ($1.52) by $0.38. The company had revenue of $2.58 billion during the quarter. CoreWeave had a negative return on equity of 47.95% and a negative net margin of 25.41%. The firm’s quarterly revenue was up 112.5% on a year-over-year basis. During the same period last year, the business earned ($0.27) EPS. As a group, sell-side analysts forecast that CoreWeave Inc. will post -4.97 EPS for the current fiscal year.
Insider Activity
In other news, insider Brian Venturo sold 65,616 shares of the stock in a transaction that occurred on Wednesday, September 30th. The shares were sold at an average price of $87.69, for a total transaction of $5,753,867.04. Following the sale, the insider owned 302,526 shares in the company, valued at $26,528,504.94. This represents a 17.82% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 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 the firm’s stock in a transaction that occurred on Tuesday, October 13th. The shares were sold at an average price of $77.42, for a total transaction of $1,669,871.98. Following the sale, the executive directly owned 5,392 shares of the company’s stock, valued at $417,448.64. This trade represents a 80.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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 quarter, insiders have sold 4,021,100 shares of company stock valued at $364,306,253. Company insiders own 24.20% of the company’s stock.
Institutional Trading of CoreWeave
A number of institutional investors and hedge funds have recently modified their holdings of CRWV. Alyeska Investment Group L.P. raised its stake in shares of CoreWeave by 55.7% in the second quarter. Alyeska Investment Group L.P. now owns 10,891,267 shares of the company’s stock worth $1,084,117,000 after purchasing an additional 3,897,741 shares during the last quarter. State Street Corp lifted its holdings in shares of CoreWeave by 139.7% during the second quarter. State Street Corp now owns 7,058,846 shares of the company’s stock valued at $702,638,000 after purchasing an additional 4,113,873 shares in the last quarter. Bank of America Corp DE boosted its position in shares of CoreWeave by 13.1% during the first quarter. Bank of America Corp DE now owns 5,652,129 shares of the company’s stock valued at $437,870,000 after buying an additional 653,398 shares during the last quarter. Amundi boosted its position in shares of CoreWeave by 266.2% during the first quarter. Amundi now owns 3,284,121 shares of the company’s stock valued at $254,421,000 after buying an additional 2,387,337 shares during the last quarter. Finally, Sumitomo Mitsui Trust Group Inc. boosted its position in shares of CoreWeave by 32.0% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,288,909 shares of the company’s stock valued at $199,410,000 after buying an additional 555,128 shares during the last quarter.
CoreWeave Company Profile
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.
Co-founder Michael Intrator serves as CoreWeave’s chief executive officer.
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