CoreWeave (NASDAQ:CRWV) Shares Down 15.5% – Here’s Why

Shares of CoreWeave Inc. (NASDAQ:CRWV) fell 15.5% during mid-day trading on Wednesday. The stock traded as low as $64.41 and last traded at $65.78. 107,460,905 shares were traded during trading, an increase of 273% from the average daily volume of 28,776,119 shares. The stock had previously closed at $77.81.

Trending Headlines about CoreWeave

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: CoreWeave’s reported $104 billion revenue backlog and continued demand for AI computing support the company’s long-term growth case. Some analysts argue that contracted demand could drive substantial upside if CoreWeave can build capacity and convert the backlog into profitable revenue. CoreWeave: Asymmetric Risk-Reward As $104 Billion Backlog Underpins Growth
• Positive Sentiment: Optimistic coverage highlighted rapid backlog growth, including roughly $25 billion of additions in six weeks, while a recent $4.2 billion convertible-bond financing could lower interest costs. The potential trade-off is future shareholder dilution. CoreWeave: A Number Hiding In Its Bond Paperwork Faces A Big Test By March 2027
• Neutral Sentiment: IREN’s AI data-center expansion, Microsoft and NVIDIA contracts, and reported backlog illustrate strong industry demand, but also increase competition for customers, power and capital among “neocloud” providers. IREN Limited’s AI Pivot Gains Traction—But Can Its Data Centers Deliver?
• Negative Sentiment: CoreWeave’s unsecured bond yield approached 15%, intensifying concerns about its ability to finance chips and data-center construction. The company’s high leverage—reported debt of about $51.6 billion versus $5.5 billion of cash—makes higher borrowing costs particularly damaging. Elon Musk’s “Yikes” response to the bond-market move amplified the negative attention. CoreWeave Shares Tumble as Bond Yields Near 15%
• Negative Sentiment: Options traders increased purchases of bearish “bubble puts,” indicating expectations for additional downside across AI infrastructure stocks. Traders Pile Into “Bubble Puts” on CoreWeave
• Negative Sentiment: D.A. Davidson analyst Gil Luria warned that CoreWeave’s equity could theoretically be wiped out if the AI spending boom weakens, despite the backlog. The warning underscores concerns about negative earnings, substantial debt and dependence on continued customer and capital-market demand. CoreWeave Stock Could Go to Zero if AI Boom Falters

Analyst Upgrades and Downgrades

Several brokerages have recently commented on CRWV. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $150.00 price objective on shares of CoreWeave in a research report on Friday, August 7th. Jefferies Financial Group lowered CoreWeave from a “buy” rating to a “hold” rating in a research note on Wednesday, July 22nd. William Blair began coverage on shares of CoreWeave in a research report on Wednesday, September 30th. They set an “outperform” rating on the stock. Robert W. Baird lifted their price target on shares of CoreWeave from $100.00 to $130.00 and gave the stock an “outperform” rating in a research note on Wednesday, August 12th. Finally, Truist Financial lifted their price target on shares of CoreWeave from $155.00 to $165.00 and gave the stock a “buy” rating in a research note on Monday, August 24th. Twenty-three analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $140.64.

CoreWeave Stock Performance

The company has a quick ratio of 0.46, a current ratio of 0.46 and a debt-to-equity ratio of 5.53. The company has a fifty day moving average price of $88.39 and a 200 day moving average price of $94.79. The stock has a market cap of $30.18 billion, a PE ratio of -18.02 and a beta of 7.36.

CoreWeave (NASDAQ:CRWV) last issued its earnings results on Tuesday, August 11th. The company reported ($1.14) earnings per share for the quarter, beating the consensus estimate 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 during the quarter. During the same quarter in the prior year, the company earned ($0.27) earnings per share. The company’s revenue was up 112.5% compared to the same quarter last year. Analysts expect that CoreWeave Inc. will post -5.19 earnings per share for the current year.

Insider Buying and Selling

In other news, insider Brian M. Venturo sold 65,616 shares of the firm’s stock in a transaction that occurred on Wednesday, September 30th. The shares were sold at an average price of $87.69, for a total value of $5,753,867.04. Following the transaction, the insider owned 302,526 shares in the company, valued at approximately $26,528,504.94. This trade represents a 17.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Brannin Mcbee sold 56,531 shares of the company’s stock in a transaction on Wednesday, September 30th. The shares were sold at an average price of $87.69, for a total transaction of $4,957,203.39. Following the sale, the insider owned 392,279 shares of the company’s stock, valued at $34,398,945.51. This represents a 12.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 5,850,311 shares of company stock worth $509,880,890. Company insiders own 24.20% of the company’s stock.

Institutional Trading of CoreWeave

Several large investors have recently modified their holdings of CRWV. State Street Corp raised 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 acquiring an additional 4,113,873 shares in the last quarter. Alyeska Investment Group L.P. lifted its stake in 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 acquiring an additional 3,897,741 shares during the period. Altimeter Capital Management LP purchased a new stake in CoreWeave in the fourth quarter worth $230,099,000. Amundi boosted its holdings in CoreWeave by 266.2% in the first quarter. Amundi now owns 3,284,121 shares of the company’s stock valued at $254,421,000 after acquiring an additional 2,387,337 shares in the last quarter. Finally, Altshuler Shaham Ltd boosted its holdings in CoreWeave by 9,369.1% in the fourth quarter. Altshuler Shaham Ltd now owns 2,010,676 shares of the company’s stock valued at $143,985,000 after acquiring an additional 1,989,442 shares in the last quarter.

About CoreWeave

CoreWeave, Inc is a specialized cloud computing provider focused on infrastructure for artificial intelligence, machine learning and other data-intensive workloads. The company offers access to accelerated computing resources, including graphics processing units (GPUs), alongside central processing units, high-performance storage, networking and data center capacity.

Its platform supports AI model training, fine-tuning and inference, as well as visual effects, rendering, scientific computing and other demanding applications.