Morgan Stanley Issues Pessimistic Forecast for CoreWeave (NASDAQ:CRWV) Stock Price

CoreWeave (NASDAQ:CRWV) had its price target cut by stock analysts at Morgan Stanley from $99.00 to $70.00 in a report issued on Friday, Benzinga reports. The brokerage currently has an “equal weight” rating on the stock. Morgan Stanley‘s target price indicates a potential upside of 25.90% from the stock’s current price.

Several other equities analysts also recently commented on the company. Roth Capital set a $145.00 target price on CoreWeave in a research report on Thursday, August 13th. TD Cowen upgraded CoreWeave to a “buy” rating in a research report on Wednesday, July 22nd. HSBC reiterated a “reduce” rating and set a $39.00 price objective on shares of CoreWeave in a research note on Tuesday. Wells Fargo & Company increased their price objective on CoreWeave from $155.00 to $160.00 and gave the stock an “overweight” rating in a research note on Wednesday, August 12th. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $150.00 price objective on shares of CoreWeave in a report on Friday, August 7th. Twenty-five research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, CoreWeave presently has an average rating of “Moderate Buy” and a consensus target price of $130.31.

CoreWeave Stock Performance

NASDAQ:CRWV opened at $55.60 on Friday. The firm has a market capitalization of $25.51 billion, a PE ratio of -15.23 and a beta of 7.36. The company has a quick ratio of 0.46, a current ratio of 0.46 and a debt-to-equity ratio of 5.53. CoreWeave has a 12-month low of $53.50 and a 12-month high of $141.79. The firm has a 50-day moving average price of $83.97 and a 200 day moving average price of $94.04.

CoreWeave (NASDAQ:CRWV) last released 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. CoreWeave had a negative return on equity of 47.95% and a negative net margin of 25.41%. The company had revenue of $2.58 billion for the quarter. During the same period in the previous year, the firm posted ($0.27) earnings per share. The firm’s revenue for the quarter was up 112.5% compared to the same quarter last year. Research analysts anticipate that CoreWeave will post -4.95 earnings per share for the current fiscal year.

Insider Activity

In other CoreWeave news, CRO Jonathan Jones sold 21,569 shares of the business’s stock in a transaction on Tuesday, October 13th. The stock was sold at an average price of $77.42, for a total value of $1,669,871.98. Following the transaction, the executive owned 5,392 shares of the company’s stock, valued at approximately $417,448.64. The trade was a 80.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 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. Also, insider Brian M. Venturo sold 65,616 shares of the stock in a transaction on Wednesday, September 30th. The stock was sold at an average price of $87.69, for a total value of $5,753,867.04. Following the sale, the insider owned 302,526 shares in the company, valued at $26,528,504.94. The trade was a 17.82% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 5,352,578 shares of company stock worth $471,777,344. 24.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in CRWV. MassMutual Private Wealth & Trust FSB raised its stake in shares of CoreWeave by 241.1% in the third quarter. MassMutual Private Wealth & Trust FSB now owns 307 shares of the company’s stock worth $27,000 after acquiring an additional 217 shares during the last quarter. Essential Partners LLC bought a new stake in shares of CoreWeave during the second quarter valued at approximately $30,000. Peterson Wealth Services grew its stake in shares of CoreWeave by 153.1% during the first quarter. Peterson Wealth Services now owns 405 shares of the company’s stock valued at $31,000 after purchasing an additional 245 shares during the last quarter. Cassaday & Co Wealth Management LLC bought a new stake in shares of CoreWeave during the first quarter valued at approximately $31,000. Finally, Burnham & Co LLC acquired a new stake in shares of CoreWeave in the second quarter valued at approximately $32,000.

CoreWeave News Roundup

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: Strong AI demand and capacity growth support the long-term outlook. Bank of America maintained a Buy rating and $140 price target, forecasting a 168% year-over-year increase in third-quarter revenue as new data-center capacity comes online. CoreWeave also introduced its Zero Trust AI Framework and Physical AI Launchables, products intended to attract enterprise, robotics, and autonomous-vehicle customers. Bank of America capacity expansion article
• Positive Sentiment: Supportive industry comments and analyst views offer a counterpoint. Nvidia CEO Jensen Huang and SpaceX executives have highlighted strong demand for AI computing, while Blackstone’s Jon Gray said CoreWeave can work through its financing challenges. Some analysts and market commentators also argue that the selloff is excessive. Blackstone CoreWeave financing article
• Neutral Sentiment: Analyst opinions are diverging. Goldman Sachs reportedly sent a more favorable signal, while Bernstein downgraded the stock and cut its price target. This disagreement is increasing volatility ahead of CoreWeave’s expected early-November third-quarter results.
• Negative Sentiment: Financing risk is weighing most heavily on CRWV. Bernstein estimated CoreWeave may face a $76 billion funding gap, while Bank of America said financing needs remain a key question. The company’s bonds have traded at distressed yields, and credit-default swap spreads reportedly exceeded 1,000 basis points. High leverage, rising borrowing costs, and uncertainty over when AI infrastructure investments will generate cash flow are driving concerns about shareholder dilution or default risk. CoreWeave downgrade and financing worries article
• Negative Sentiment: Broader market conditions are adding pressure. Higher interest rates, elevated oil prices, concerns about an AI spending bubble, potential excess computing capacity, and customer-concentration risks are making investors less willing to pay for highly leveraged growth companies. CoreWeave’s debt-to-equity ratio of 5.53 further magnifies the risk.

About CoreWeave

CoreWeave, Inc is a specialized cloud computing company that provides infrastructure designed for artificial intelligence (AI), machine learning, and other high-performance computing workloads. Its platform gives customers access to accelerated computing resources, including graphics processing units (GPUs), along with the networking, storage, and software tools needed to develop, train, and deploy demanding applications.

The company offers cloud services for AI model training and inference, visual effects and rendering, scientific computing, and other data-intensive workloads.