CoreWeave (NASDAQ:CRWV) Shares Gap Up on Better-Than-Expected Earnings

CoreWeave Inc. (NASDAQ:CRWV) shares gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $48.73, but opened at $55.97. CoreWeave shares last traded at $58.71, with a volume of 40,296,310 shares.

The company reported ($0.95) earnings per share (EPS) for the quarter, topping the consensus estimate of ($1.45) by $0.50. The company had revenue of $3.66 billion during the quarter, compared to analysts’ expectations of $3.54 billion. CoreWeave had a negative return on equity of 59.42% and a negative net margin of 25.56%. The company’s revenue for the quarter was up 168.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.22) earnings per share.

Key CoreWeave News

Investors following CRWV have been watching these news items:

• Positive Sentiment: A Seeking Alpha contributor upgraded the stock from Sell to Buy, citing earnings above expectations, clearer financing plans, customer prepayments and a lower weighted average cost of debt. CoreWeave: The Debt Crisis That Wasn’t
• Negative Sentiment: Microsoft is reportedly reassessing contracts with neocloud providers as it prioritizes its own data centers. Its custom AI accelerator, expected to ramp up in 2027, could also reduce reliance on outside capacity over time. Microsoft’s neocloud contracts
• Negative Sentiment: Despite financing improvements, CoreWeave’s substantial debt and interest burden remain risks, with potential dilution also weighing on investor confidence.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the stock. Deutsche Bank reiterated a “buy” rating and issued a $150.00 price objective (up from $135.00) on shares of CoreWeave in a report on Friday, August 7th. William Blair initiated coverage on CoreWeave in a report on Wednesday, September 30th. They set an “outperform” rating on the stock. Wells Fargo & Company cut their target price on CoreWeave from $160.00 to $115.00 and set an “overweight” rating for the company in a research report on Monday. Cantor Fitzgerald lowered their price target on CoreWeave from $176.00 to $100.00 and set an “overweight” rating on the stock in a research report on Wednesday. Finally, Citigroup boosted their price objective on CoreWeave from $128.00 to $149.00 and gave the stock a “buy” rating in a research note on Wednesday. Twenty-six research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $116.66.

Insider Buying and Selling at CoreWeave

In other news, CEO Michael N. Intrator sold 200,000 shares of the stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $95.72, for a total transaction of $19,144,000.00. Following the completion of the sale, the chief executive officer owned 1,676,815 shares in the company, valued at approximately $160,504,731.80. This represents a 10.66% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Brannin Mcbee sold 144,000 shares of the stock in a transaction on Monday, August 17th. The shares were sold at an average price of $106.08, for a total value of $15,275,520.00. Following the sale, the insider owned 323,263 shares of the company’s stock, valued at $34,291,739.04. This trade represents a 30.82% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 3,419,887 shares of company stock valued at $304,094,910. Corporate insiders own 24.20% of the company’s stock.

Institutional Investors Weigh In On CoreWeave

Several hedge funds have recently modified their holdings of CRWV. Alyeska Investment Group L.P. increased its stake in CoreWeave by 55.7% in the 2nd 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 in the last quarter. State Street Corp lifted its stake in CoreWeave by 9.6% during the third quarter. State Street Corp now owns 7,739,510 shares of the company’s stock valued at $674,266,000 after buying an additional 680,664 shares in the last quarter. Bank of America Corp DE lifted its stake in 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 in the last quarter. First Trust Advisors LP boosted its holdings in shares of CoreWeave by 27.2% in the third quarter. First Trust Advisors LP now owns 3,470,404 shares of the company’s stock worth $302,342,000 after buying an additional 741,620 shares during the period. Finally, Amundi boosted its holdings in shares of CoreWeave by 266.2% in the first quarter. Amundi now owns 3,284,121 shares of the company’s stock worth $254,421,000 after buying an additional 2,387,337 shares during the period.

CoreWeave Stock Performance

The firm’s 50-day moving average price is $73.22 and its two-hundred day moving average price is $89.07. 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 firm has a market capitalization of $25.97 billion, a PE ratio of -12.04 and a beta of 7.71.

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.