CoreWeave (CRWV -11.58%) closed Friday at $71.88, down 11.4% for the session. The drop wiped out the artificial intelligence (AI) cloud provider's entire week and knocked down shares from levels above $86 at one point during the week, leaving shares below Monday's close of $73.06.
The timing is strange. Two days earlier, one of the biggest spenders in AI infrastructure said it wanted more of what CoreWeave sells. Alphabet lifted its 2026 capital spending outlook by $15 billion on Wednesday, to as much as $205 billion. On Alphabet's second-quarter earnings call, chief financial officer Anat Ashkenazi said the company would "expand the use of third-party capacity in Q3 as a bridging strategy."
CoreWeave shares rose in after-hours trading on that comment. But they gave it back Thursday, and more on Friday, alongside fellow neocloud Nebius Group, which fell 15% on Friday alone.
So, what gives? Friday's sell-off for these stocks arguably wasn't a verdict on demand. It was a verdict on what meeting that demand costs.
Here's a closer look.
Image source: The Motley Fool.
The demand story is the easy part CoreWeave's revenue climbed 112% year over year in the first quarter, to $2.08 billion, and its revenue backlog stood at $99.4 billion at the end of March. To be fair, few companies of any size can grow like that.
But the picture thins as you move down the income statement. Non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $1.16 billion for the quarter, a 56% margin -- down from 62% a year earlier. Adjusted operating income, which charges the quarter for depreciation on all those graphics processing units and data centers, fell year over year to $21 million from $163 million. On that line, the margin went from 17% to 1%. Management expects it to expand each quarter from here, into low double digits by the fourth quarter.
The spending is running years ahead of the revenue But here's the problem.
Management expects capital expenditures of $31 billion to $35 billion this year. CoreWeave's revenue over the past 12 months was about $6.2 billion. That gap may be part of what's spooking investors.
In other words, the company plans to spend about five times its past year's sales on capacity in 2026. Zoom out, and the step-up is steep: CoreWeave reported $14.9 billion in capital expenditures in all of 2025.
One quarter tells the same story. CoreWeave generated $2.98 billion of operating cash flow during the first quarter and spent $7.7 billion on property and equipment.
Debt helps fill that gap. And the interest on it is climbing fast.
Net interest expense was $264 million in the first quarter of 2025. It reached $388 million in the fourth quarter of 2025, then $536 million in the first quarter of 2026. Management guided for $650 million to $730 million in the second quarter.
At that midpoint, CoreWeave's first-half net interest expense this year would nearly match the $1.23 billion it recorded across all of 2025.
And the balance behind it keeps growing. Total debt stood near $24.9 billion at the end of March, up from $21.4 billion three months earlier.
The backlog, meanwhile, arrives slowly. CoreWeave counted $98.8 billion of it as unsatisfied remaining performance obligations (contracted work not yet delivered) at the end of March, and expects to recognize just 36% within 24 months. The rest stretches as far out as seven years.
"This revenue backlog is near-term weighted, with 36% expected to be recognized in the next 24 months and 75% in the next four years," chief financial officer Nitin Agrawal said on CoreWeave's first-quarter earnings call.
Today's Change
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Near-term weighted is one way to put it. The spending happens this year, the interest accrues every quarter, and about two-thirds of that revenue isn't due until after March 2028.
And competition is a concern, too. Bloomberg reported on July 1 that Meta Platforms is building a cloud business to sell surplus AI computing capacity to outside customers. Meta also committed $21 billion to CoreWeave earlier this year, so one of the company's biggest customers may be preparing to compete with it.
So does an 11% drop make the stock cheap? At about $39 billion, CoreWeave's market value is still about six times its trailing-12-month revenue -- too high, in my opinion, for a company as speculative as this one.
California Public Employees Retirement System purchased a new stake in CoreWeave Inc. (NASDAQ:CRWV – Free Report) during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 265,841 shares of the company’s stock, valued at approximately $20,595,000. California Public Employees Retirement System owned approximately 0.06% of CoreWeave at the end of the most recent reporting period.
A number of other institutional investors also recently bought and sold shares of the business. Azzad Asset Management Inc. ADV increased its holdings in shares of CoreWeave by 2.1% in the 1st quarter. Azzad Asset Management Inc. ADV now owns 5,020 shares of the company’s stock valued at $389,000 after acquiring an additional 104 shares during the last quarter. Hazlett Burt & Watson Inc. lifted its stake in CoreWeave by 34.7% during the fourth quarter. Hazlett Burt & Watson Inc. now owns 462 shares of the company’s stock worth $33,000 after purchasing an additional 119 shares during the last quarter. Cullen Frost Bankers Inc. boosted its holdings in CoreWeave by 45.8% in the fourth quarter. Cullen Frost Bankers Inc. now owns 385 shares of the company’s stock valued at $28,000 after purchasing an additional 121 shares in the last quarter. Parkside Financial Bank & Trust boosted its holdings in CoreWeave by 26.3% in the fourth quarter. Parkside Financial Bank & Trust now owns 600 shares of the company’s stock valued at $43,000 after purchasing an additional 125 shares in the last quarter. Finally, WPG Advisers LLC increased its stake in CoreWeave by 14.1% in the first quarter. WPG Advisers LLC now owns 1,159 shares of the company’s stock valued at $90,000 after purchasing an additional 143 shares during the last quarter.
CoreWeave Price Performance Shares of NASDAQ:CRWV opened at $82.64 on Thursday. CoreWeave Inc. has a one year low of $63.80 and a one year high of $153.20. The stock has a market capitalization of $36.99 billion, a price-to-earnings ratio of -26.57 and a beta of 7.17. The company has a 50-day simple moving average of $98.41 and a 200-day simple moving average of $95.46. The company has a debt-to-equity ratio of 3.68, a quick ratio of 0.31 and a current ratio of 0.31.
CoreWeave (NASDAQ:CRWV – Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported ($1.40) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.17) by ($0.23). CoreWeave had a negative net margin of 25.57% and a negative return on equity of 43.07%. The company had revenue of $2.08 billion during the quarter. During the same quarter in the previous year, the business earned ($0.60) EPS. The firm’s revenue for the quarter was up 111.6% compared to the same quarter last year. On average, analysts predict that CoreWeave Inc. will post -4.57 EPS for the current year.
Analysts Set New Price Targets A number of analysts have weighed in on CRWV shares. Wells Fargo & Company raised their price objective on shares of CoreWeave from $135.00 to $155.00 and gave the stock an “overweight” rating in a report on Friday, May 8th. Mizuho dropped their target price on shares of CoreWeave from $110.00 to $100.00 and set a “neutral” rating on the stock in a research report on Wednesday, July 15th. Sanford C. Bernstein initiated coverage on shares of CoreWeave in a research report on Wednesday. They issued an “outperform” rating on the stock. BTIG Research initiated coverage on shares of CoreWeave in a research note on Wednesday. They set a “buy” rating on the stock. Finally, Oppenheimer boosted their price target on shares of CoreWeave from $140.00 to $150.00 and gave the company an “outperform” rating in a research report on Wednesday, April 29th. Twenty-two research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, CoreWeave presently has an average rating of “Moderate Buy” and an average price target of $136.25.
View Our Latest Report on CRWV
Insider Transactions at CoreWeave In other CoreWeave news, insider Brannin Mcbee sold 53,000 shares of the business’s stock in a transaction on Monday, July 6th. The shares were sold at an average price of $86.13, for a total value of $4,564,890.00. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael N. Intrator sold 61,797 shares of the company’s stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $86.94, for a total transaction of $5,372,631.18. Following the transaction, the chief executive officer owned 2,876,815 shares of the company’s stock, valued at approximately $250,110,296.10. The trade was a 2.10% 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. Insiders sold 17,072,869 shares of company stock worth $1,983,274,420 over the last 90 days. 24.20% of the stock is currently owned by insiders.
CoreWeave News Summary Here are the key news stories impacting CoreWeave this week:
Positive Sentiment: Truist upgraded CoreWeave to Buy, helping lift the stock as Wall Street continues to favor the company’s AI infrastructure growth story. CoreWeave upgraded to buy at Truist Positive Sentiment: Baird initiated coverage on CoreWeave with an Outperform rating, adding another vote of confidence in the company’s ability to benefit from AI demand and cloud expansion. CoreWeave, Nebius initiated with outperform ratings at Baird Positive Sentiment: Several pieces highlight the company’s strong revenue growth outlook and recent rebound, including commentary that CoreWeave is chasing 108% Q2 revenue growth with major power capacity expansion. CoreWeave (CRWV) Is Chasing 108% Q2 Revenue Growth With A Big Power Ramp Neutral Sentiment: The CFO sold about $5.5 million of company shares, which may raise some investor caution but is not necessarily a fundamental red flag on its own. CoreWeave’s CFO Sold Company Shares for $5.5 Million. What Does That Mean for Investors? Neutral Sentiment: Analyst target updates show mixed but still constructive sentiment: one report noted a $139.69 consensus price target, while Barclays cut its target to $90 and kept an equal-weight view. CoreWeave Inc. (NASDAQ:CRWV) Receives $139.69 Consensus PT from Brokerages Negative Sentiment: Broader concerns remain around CoreWeave’s heavy debt load, large capital spending needs, and pressure to quickly add power capacity, which could limit upside if execution slows. CoreWeave’s AI-Native Cloud Faces the Storm About CoreWeave (Free Report)
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.
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LIVINGSTON, N.J.--(BUSINESS WIRE)--CoreWeave, Inc. (Nasdaq: CRWV), The Essential Cloud for AI™, today announced Anam, the Interactive Avatar platform for adding a face to your agent, has selected CoreWeave Cloud to power the development of AI agents, combining photorealistic quality with sub-second response times and API-first deployment. Anam builds interactive avatars designed for face-to-face conversational experiences, where latency measured in milliseconds determines whether an interaction.
Nitin Agrawal, Chief Financial Officer of CoreWeave, Inc. (CRWV +5.80%), sold 65,055 shares of Class A Common Stock on July 13, 2026 according to the SEC Form 4 filing.
Transaction summaryMetricValueTransaction value~$5.5 millionShares sold (directly held)65,055Post-transaction shares (total)302,573Post-transaction shares (directly held)128,716Post-transaction shares (indirectly held)173,857Post-transaction value$25.21 millionTransaction value based on SEC Form 4 weighted average sale price ($84.74); post-transaction value based on July 13, 2026 market close ($83.31).
Key questionsWhat were the specific parameters of the execution and the price range?
The 65,055 shares were sold in multiple transactions at prices ranging from $82.80 to $88.79 per share. This activity was governed by a Rule 10b5-1 plan originally adopted on August 27, 2025, and subsequently modified on November 18, 2025, to facilitate structured divestment.How does this sale compare to the company's recent market performance?
CoreWeave shares were priced at $83.31 at the July 13, 2026 market close, while the company has posted a -34% total return over the 12 months ending on the transaction date. As of the July 14, 2026 market close, the stock was priced at $79.94.What is the insider's remaining financial interest in the company?
Following this transaction, Agrawal retains a total beneficial ownership of 302,573 shares, representing an insider ownership stake of 0.0555%. Of that total, about $174,000 were held indirectly through grantor retained annuity trusts (GRATs) and his spouse.Company OverviewMetricValueShare Price (as of market close 2026-07-14)$79.94Market Capitalization$43.6 billionRevenue (TTM)$6.2 billionNet Income (TTM)($1.6 billion)Company SnapshotCoreWeave operates a specialized cloud computing platform called a neocloud. It provides high-performance GPU and CPU compute resources, storage solutions, advanced networking capabilities, and fully managed services designed to support generative AI and intensive compute workloads for large enterprises.The company generates revenue through a cloud infrastructure-as-a-service model, offering flexible virtual servers and bare-metal compute options that enable clients to scale their computational resources according to demand.CoreWeave primarily serves large enterprises and organizations requiring substantial computational capacity for generative AI applications, machine learning workloads, and other compute-intensive operations.CoreWeave has established itself as a critical infrastructure provider in the generative AI ecosystem, with a market capitalization of $43.6 billion and TTM revenue of $6.2 billion. The company's specialized focus on GPU-accelerated computing and managed services positions it to capture significant demand from enterprises deploying large-scale AI applications.
Despite current net losses, CoreWeave's rapid revenue growth and strategic positioning in high-growth AI infrastructure markets underscore its competitive advantage in supporting the computational demands of the generative AI revolution.
What this transaction means for investorsThe July 13 sale of CoreWeave shares by CFO Nitin Agrawal was a non-discretionary transaction as part of a prearranged Rule 10b5-1 plan. Such plans allow insiders to sell shares at predetermined times to avoid concerns of trading on non-public information.
Even so, the hefty 34% reduction in direct holdings is not a comfort for investors, especially given the stock’s substantial decline from the 52-week high of $153.20 reached in 2025. CoreWeave shares sank due to the massive debt of over $25 billion on the balance sheet at the end of the first quarter. The company continues to add debt, such as its June 11 announcement to offer $3.5 billion in senior notes.
CoreWeave is piling on debt to fuel the expansion of its AI infrastructure business. It’s seeing strong sales growth thanks to the artificial intelligence boom. In the first quarter, its revenue exceeded $2 billion compared to $982 million in 2025. Agrawal’s remaining stake of 302,573 shares indicates he maintains a sizable equity stake in the company.
Robert Izquierdo has positions in CoreWeave. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
CoreWeave (NASDAQ: CRWV) stock’s latest recovery in an otherwise red month led to the equity’s first positive Wall Street rating since July 2.
Specifically, describing the former cryptocurrency miner as a ‘pioneer and leader’ in the sector focused on purpose-built artificial intelligence (AI) infrastructure, Baird’s Rob Oliver initiated coverage of the neocloud with a ‘Buy’ rating and a $100 price target, effectively forecasting CRWV shares would soar 25.66% from $79.58 at the latest close in the next 12 months.
Additionally, the analyst reflected on the ongoing concerns over the supply-side of building AI infrastructure – arguably a major reason for the 20.05% CoreWeave stock drop in June – by explaining it highlights ‘the importance of execution at a time when demand far outpaces supply.’
CoreWeave stock price one-month price chart. Source: Google Why CoreWeave stock crashed in July Indeed, recent months brought multiple developments leading many investors, observers, and institutional experts to begin wondering if the AI ‘boom’ not only turned into a ‘bubble,’ but is also already bursting.
Along with questions regarding how many of the Blackwells Nvidia (NASDAQ: NVDA) reported selling are actually in use amidst data center construction setbacks, pricing changes for GitHub Copilot led to a strong backlash and a flurry of adjustments from most prominent companies within the space.
Additionally, the fact that Google’s (NASDAQ: GOOGL) claims that AI revenue and profits were limited by supply was followed by both SpaceX (NASDAQ: SPCX) and Meta Platforms (NASDAQ: META) having sufficient compute to begin renting it out made the situation even more curious.
Finally, the matter was further exacerbated by the apparent concentration of demand, with Anthropic being a buyer of Elon Musk’s capacity and in talks with Mark Zuckerberg’s firm over its data centers.
Still, Google also paying SpaceX for compute appears to confirm the constraint comments the firm made earlier in 2026.
Analysts predict CoreWeave stock price in the next 12 months Elsewhere, though investors were evidently troubled by developments in the AI industry given CoreWeave’s 20.05% July drop from $99.54 to $79.58, Wall Street appears to have remained confident.
Overall, CRWV stock is considered a ‘Moderate Buy’ and boasts 12 positive, 9 ‘Neutral,’ and 1 ‘Sell’ recommendation, per the data Finbold retrieved from TipRanks on July 22.
Wall Street sets CoreWeave stock price target for the next 12 months. Source: TipRanks Furthermore, institutional analysts appear to believe CoreWeave shares’ performance in the coming 12 months will shift substantially from the previous 52 weeks – a period in which they crashed 38.68% – considering the average forecast calls for a 64.89% rise to $131.22.
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Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
Considering buying CRWV stock? Here’s what analysts think:
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Nebius Group‘s (NASDAQ:NBIS | NBIS Price Prediction) stock is catapulting 16% higher Tuesday to $212 after NVIDIA (NASDAQ:NVDA) disclosed a 9.3% beneficial ownership stake in the AI cloud specialist. The move extends Nebius stock’s run to 155% year to date (YTD), a pace that has Wall Street debating whether the valuation has outrun the fundamentals.
CoreWeave (NASDAQ:CRWV) stock is following Nebius higher, up 8% to $79 versus a milder 10% YTD gain. Meanwhile, Oracle (NYSE:ORCL) stock is climbing 5% to $127, though Oracle shares remain down 35% YTD even after today’s bounce.
NVIDIA’s Stake Filing Ignites the Rally NVIDIA disclosed in a Schedule 13G filing that it beneficially owns 22,256,412 Class A shares of Nebius stock, or 9.3% of the class. Most of that stake comes from a pre-funded warrant tied to a $2 billion private placement Nebius completed in March, with the rest held outright.
Contractual restrictions bar NVIDIA from exercising the warrant or selling the underlying shares before September 11, and NVIDIA’s use of a 13G rather than a 13D signals it isn’t seeking control of Nebius. Nebius stock’s trailing 12-month (TTM) P/E ratio of 82.36x, along with a roughly $46 billion market value, shows just how much the company’s assumed growth is already priced in.
CoreWeave Catches a Sympathy Bid CoreWeave stock doesn’t have an obvious company-specific catalyst behind today’s 8% pop to $79. The move looks more like a sympathy trade off Nebius’s headline news, layered on top of the NASDAQ 100’s 1.9% advance today. That leaves CoreWeave stock’s 10% YTD gain lagging Nebius stock’s 155% climb by a wide margin, especially since CoreWeave carries no TTM P/E ratio while it remains unprofitable on a trailing twelve-month basis.
Traders adding CoreWeave stock here are largely betting on momentum continuing rather than on any fresh, company-specific data point. That makes CoreWeave’s move today more fragile than Nebius stock’s catalyst-driven surge, even though both stocks are moving in the same direction.
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Oracle’s Bulls and Bears Square Off Mizuho reiterated its Outperform rating and kept a $320 price target on Oracle stock, implying 164% upside from Monday’s close. The brokerage noted Oracle stock trades at just 14x projected 2027 non-GAAP earnings, a discount to peers, while Oracle stock’s TTM P/E ratio of 21.74x looks comparatively reasonable next to Nebius stock’s 82.36x multiple.
On the other hand, Oracle’s credit market signals point to rising unease. The cost of five-year credit default swaps on Oracle’s debt climbed to 2.03 percentage points this week, the highest level since records began in 2008. S&P Global Ratings recently cut Oracle to BBB-, just one notch above junk status, and Moody’s Ratings holds Oracle at Baa2 with a negative outlook.
A Diversified Play, and the Next Catalysts to Watch For investors who don’t want to pick a single winner among Nebius, CoreWeave, and Oracle stock, they may choose to get exposure via a cloud-focused ETF. In that vein, the First Trust Cloud Computing ETF (NASDAQ:SKYY) offers diversified exposure to the AI cloud theme. The ETF isn’t immune to sector risk, though, since its holdings stay concentrated in cloud and data-infrastructure names rather than spread across unrelated industries.
Nebius stock appears to be the most speculative of the trio given its rich multiple and reliance on NVIDIA’s stamp of approval, while CoreWeave’s sympathy rally could prove fragile without a catalyst of its own. Oracle stock’s comparatively modest TTM P/E ratio of 21.74x may make it the best value of the three, provided the widening credit spreads don’t point to deeper trouble ahead.
Considering how differently these three stocks are priced for risk, investors might choose to keep their position sizes modest across the group, especially in the richer-multiple names. Investors can watch for whether Oracle’s September 9 earnings report shows capacity monetization catching up with the AI-spending worries pressuring Oracle’s bonds, and whether Nebius stock holds above $210 throughout the week.
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CEO Michael Intrator says the global AI build-out requires capital on a scale rarely seen, but that he is on the “right side” of a generational change.
CoreWeave (NASDAQ:CRWV) has become the poster child for the AI infrastructure gold rush, and also its most polarizing bet. Capital expenditures are set to run $31 billion to $35 billion in 2026 alone, dwarfing revenue and lighting up both the bull and bear thesis. Our model sees meaningful upside from here.
Our 24/7 Wall St. price target on CRWV is $163.32 over the next 12 months, versus a current price of $73.06. That implies 123.54% upside and a buy recommendation. Confidence is moderate at 50%, reflecting the tension between a nearly $100 billion backlog and a balance sheet stretched by breakneck capex.
24/7 Wall St. Price Target Summary Metric Value Current Price $73.06 24/7 Wall St. Price Target $163.32 Upside 123.54% Recommendation BUY Confidence Level 50% A Brutal Month for a Booming Business CRWV has traded like a stock in crisis. Shares fell 38.06% over the past month and 40.61% over the past year, even as the business booked its strongest quarter yet.
Q1 2026 revenue hit $2.08 billion, up 111.7% year over year, while backlog reached $99.4 billion. A July Meta Compute announcement spooked investors about cannibalization. Debt has climbed to roughly $35 billion, net loss widened to $740 million, and interest expense doubled to $536 million.
The Case for $200 and Higher Bulls have real ammunition. New Q1 bookings exceeded $40 billion, and management guides to $12 billion to $13 billion in 2026 revenue with low-double-digit adjusted operating margin by Q4. CoreWeave surpassed 1 GW of active power and targets more than 8 GW by 2030.
Investment-grade financing on DDTL 4.0 at sub-6% implied cost is a structural win. Rosenblatt’s John McPeake carries the most aggressive Street call at $250, reiterated after the Meta scare. Our bull-case scenario points to $166.97, roughly 128.54% upside.
What Could Go Wrong The bear case starts with capex arithmetic. Q1 2026 free cash flow ran negative $4.71 billion, and 2026 capex guidance of up to $35 billion means CoreWeave will keep leaning on capital markets. Total liabilities sit above $50 billion.
A securities fraud class action alleging concealed data center delays adds legal overhang. Customer concentration is real: Meta and OpenAI alone represent tens of billions in commitments.
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Management pushed back that gross margin compression to 68% is “predominantly timing-based, not economic” as new deployments ramp. Our bear-case target lands at $131.55, well above today’s price.
How CoreWeave Compares to Nebius and IREN Nebius Group (NASDAQ:NBIS | NBIS Price Prediction) competes for the same hyperscaler and AI-lab dollars. It achieved positive adjusted EBITDA of $129.5 million and carries a market cap of roughly $40 billion, similar to CRWV’s $39.9 billion. Yet Nebius’s 2026 revenue guide of $3 billion to $3.4 billion is a fraction of CoreWeave’s $12 billion to $13 billion. On a price-to-sales basis, CRWV at 6.41x trailing looks reasonable.
IREN (NASDAQ:IREN) is the smaller, faster-mover comparable. IREN targets $3.7 billion in ARR by end of 2026 with 5 gigawatts of secured power globally and a $3.4 billion NVIDIA cloud contract. At a market cap of roughly $14 billion, IREN trades cheaper on power secured, but CoreWeave has the contracted revenue lead. The peer set makes our $163.32 target reasonable, not aggressive.
CoreWeave Price Prediction 2026-2030 The setup on CRWV looks constructive. The 24/7 Wall St. price target of $163.32 reflects a company whose backlog and power pipeline justify a re-rate once operating margin inflects in the second half of 2026.
Confidence is moderate at 50% because debt and litigation are genuine tail risks. Watch for adjusted operating margin exiting Q4 in the low double digits as guided. The setup weakens if capex creeps above $35 billion without matching backlog conversion.
Year 24/7 Wall St. Price Target 2026 $101 2027 $163 2028 $260 2029 $420 2030 $560 These projections assume CoreWeave converts backlog on schedule and reaches its 8 GW power target by 2030. Meaningful upside or downside could come from Nvidia GPU pricing, litigation outcomes, or hyperscaler in-sourcing shifts.
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Amova Asset Management Americas Inc. increased its position in shares of CoreWeave Inc. (NASDAQ:CRWV – Free Report) by 28.2% during the first quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 1,123,843 shares of the company’s stock after acquiring an additional 247,470 shares during the period. CoreWeave comprises about 1.2% of Amova Asset Management Americas Inc.’s portfolio, making the stock its 27th biggest position. Amova Asset Management Americas Inc. owned about 0.25% of CoreWeave worth $86,997,000 at the end of the most recent reporting period.
A number of other institutional investors and hedge funds have also bought and sold shares of the company. Vanguard Group Inc. increased its holdings in shares of CoreWeave by 275.6% in the fourth quarter. Vanguard Group Inc. now owns 27,920,979 shares of the company’s stock worth $1,999,421,000 after purchasing an additional 20,487,478 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank increased its stake in CoreWeave by 6,022.0% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 112,768 shares of the company’s stock worth $8,075,000 after acquiring an additional 110,926 shares during the last quarter. Legal & General Group Plc raised its holdings in shares of CoreWeave by 8,455.6% in the 4th quarter. Legal & General Group Plc now owns 611,301 shares of the company’s stock valued at $43,775,000 after acquiring an additional 604,156 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. raised its holdings in shares of CoreWeave by 67.2% in the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 66,947 shares of the company’s stock valued at $4,794,000 after acquiring an additional 26,907 shares in the last quarter. Finally, Broad Peak Investment Advisers Pte Ltd bought a new stake in shares of CoreWeave during the 4th quarter valued at about $15,539,000.
Insider Transactions at CoreWeave In other news, major shareholder Magnetar Financial Llc sold 1,284,876 shares of the stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $119.91, for a total transaction of $154,069,481.16. Following the completion of the sale, the insider directly owned 264,061 shares in the company, valued at approximately $31,663,554.51. This represents a 82.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Jack D. Cogen sold 986,540 shares of the business’s stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $107.80, for a total value of $106,349,012.00. The SEC filing for this sale provides additional information. Insiders sold 19,885,161 shares of company stock worth $2,326,801,573 in the last 90 days. Corporate insiders own 24.20% of the company’s stock.
CoreWeave Trading Down 0.2% Shares of CRWV stock opened at $73.06 on Tuesday. The business has a 50-day moving average of $99.55 and a 200 day moving average of $95.33. The company has a debt-to-equity ratio of 3.68, a current ratio of 0.31 and a quick ratio of 0.31. CoreWeave Inc. has a 1-year low of $63.80 and a 1-year high of $153.20. The stock has a market capitalization of $32.70 billion, a PE ratio of -23.49 and a beta of 7.17.
CoreWeave (NASDAQ:CRWV – Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($1.40) earnings per share for the quarter, missing the consensus estimate of ($1.17) by ($0.23). CoreWeave had a negative net margin of 25.57% and a negative return on equity of 43.07%. The company had revenue of $2.08 billion during the quarter. During the same period in the prior year, the firm earned ($0.60) EPS. The business’s revenue was up 111.6% on a year-over-year basis. As a group, sell-side analysts anticipate that CoreWeave Inc. will post -4.57 earnings per share for the current year.
Analysts Set New Price Targets A number of brokerages recently weighed in on CRWV. DA Davidson reaffirmed a “neutral” rating and issued a $100.00 target price (down from $175.00) on shares of CoreWeave in a research note on Monday, May 18th. Truist Financial raised their price objective on shares of CoreWeave from $85.00 to $131.00 and gave the company a “hold” rating in a research report on Friday, May 8th. Jefferies Financial Group lifted their price objective on shares of CoreWeave from $120.00 to $160.00 and gave the stock a “buy” rating in a report on Monday, May 4th. Weiss Ratings upgraded shares of CoreWeave from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, June 24th. Finally, Barclays increased their target price on CoreWeave from $106.00 to $120.00 and gave the company an “equal weight” rating in a research note on Monday, May 11th. Twenty equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $138.87.
View Our Latest Stock Report on CoreWeave
CoreWeave Profile (Free Report)
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.
Featured Articles Five stocks we like better than CoreWeave The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story Want to see what other hedge funds are holding CRWV? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for CoreWeave Inc. (NASDAQ:CRWV – Free Report).
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CoreWeave (NASDAQ:CRWV) heads into its 2Q26 earnings report in early August with investors watching execution more than demand. Demand for GPU capacity is...
CoreWeave (NASDAQ:CRWV) heads into its 2Q26 earnings report in early August with investors watching execution more than demand.
Demand for GPU capacity is still strong and customer commitments keep growing, but the real story now is whether the company can build out and activate power fast enough to keep up, according to analysts at Bank of America.
Data center execution is the number to watch. CoreWeave currently has about 1GW of active power and is targeting 1.7GW by year end, which means a big chunk of new capacity needs to come online over the next couple of quarters.
Bank of America analysts expect more of that buildout to land in the second half of the year rather than the first, and that's driving some steep revenue growth forecasts: 108% year over year in 2Q26, climbing to 150% in 3Q26 and 186% in 4Q26.
Capital spending is climbing too. The FY26 capex estimate has been raised to $34 billion, up from $29 billion, reflecting how fast the market is moving and the cost of key hardware components.
Operating margin is expected to come in around 2.4% in 2Q26, just below the Street's 2.8% estimate, but the outlook calls for steady improvement each quarter after that.
By the end of 4Q26, Bank of America expects operating margin could reach 14.6%, a big jump from just 1% in 1Q26.
Analysts believe competition, particularly from SpaceX and Meta, has weighed on the stock lately. But the view from Bank of America is that the compute market is not structurally competitive. Demand for AI compute is still outpacing supply by a wide margin, so the bigger constraint for customers is simply getting access to capacity, not choosing between providers.
Bank of America reiterated its Buy rating and $140 price objective on the stock.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of CRWV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
CoreWeave: Consistent Revenue ExpansionCoreWeave (CRWV +0.60%) operates a specialized cloud computing environment that provides bare-metal virtual servers, storage solutions, and advanced networking resources for enterprise clients.
It recently faced a class action lawsuit regarding customer demand statements, and it reported a -36% net income margin for the quarter ended March 31, 2026.
Applied Digital: Managing Data Center OperationsApplied Digital (APLD 2.46%) designs, develops, and manages digital infrastructure and data center solutions for high-performance computing industries and specialized hosting customers across North America.
It completed the separation of its cloud business into a new entity on May 5, 2026, while recording a -78% net income margin for the quarter ended Feb. 28, 2026.
Why Revenue Matters for Retail InvestorsRevenue shows the total money a business brings in during a specific period before any expenses are deducted, helping investors gauge the overall size and scale of operations.
Quarterly Revenue for CoreWeave and Applied DigitalQuarter (Period End)CoreWeave RevenueApplied Digital RevenueQ2 2024$395.4 million (period ended June 2024)$14.7 million (period ended May 2024)Q3 2024$583.9 million (period ended Sept. 2024)$60.7 million (period ended Aug. 2024)Q4 2024$747.4 million (period ended Dec. 2024)$63.9 million (period ended Nov. 2024)Q1 2025$981.6 million (period ended March 2025)$52.9 million (period ended Feb. 2025)Q2 2025$1.2 billion (period ended June 2025)$38.0 million (period ended May 2025)Q3 2025$1.4 billion (period ended Sept. 2025)$64.2 million (period ended Aug. 2025)Q4 2025$1.6 billion (period ended Dec. 2025)$126.6 million (period ended Nov. 2025)Q1 2026$2.1 billion (period ended March 2026)$126.6 million (period ended Feb. 2026)Data source: Company filings. Data as of July 16, 2026.
Foolish TakeCoreWeave and Applied Digital share a symbiotic relationship. Applied Digital rents out its data centers to CoreWeave. That adds an interesting twist to the revenue comparison between the two, since CoreWeave sales are soaring while Applied Digital is showing a more modest pace of growth, an indication of the differences in their business models.
CoreWeave’s focus on renting out computing power to artificial intelligence customers is driving its spectacular sales expansion. In the first quarter, revenue surpassed $2 billion, and the company announced a backlog of business worth nearly $100 billion. This bodes well for a continuation of its sales growth trend. However, supplying the equipment needed to support AI is expensive, and the company has amassed about $25 billion in debt at the end of Q1.
As a data center landlord, Applied Digital enjoyed a 139% year-over-year increase in revenue to $126.6 million for its fiscal third quarter ended Feb. 28. But like CoreWeave, it had to take on debt to continue building data centers with about $2.6 billion on its fiscal Q3 balance sheet.
The high debt load for each has turned off Wall Street investors, leading to a drop in share price for both companies. But of the two, CoreWeave’s price-to-sales ratio of six is around a low point for the past year, while Applied Digital is far more expensive with a sales multiple of 21.
It wasn't a great week for tech stocks, but CoreWeave (CRWV +0.60%) severely underperformed the tech-heavy Nasdaq Composite index. Shares of the artificial intelligence (AI) infrastructure provider plunged 18% for the week, according to data provided by S&P Global Market Intelligence.
Volatility is common in stocks like CoreWeave, which are in heavy growth mode. Revenue is soaring, but the company is still losing money. But a report this week may have spooked investors, too.
Image source: The Motley Fool.
Focus on what you know CoreWeave leases GPU computing power for the development and execution of AI models. It has been spending heavily to grow the volume of compute capacity it has available. That spending has included long-term supply agreements with chip manufacturers.
Demand is so high, though, that memory chip prices have gone through the roof. That's why investors have sent the stocks of names like Micron Technology and Sandisk soaring this year. The memory sector has historically been cyclical. As suppliers increase capacity while demand is high, a supply glut could follow, sharply dropping prices.
That's why CoreWeave may be looking to hedge against a future drop in memory chip prices, according to reports. The company's supply contracts could leave it exposed if competitors can pay lower prices after a downturn in the memory market.
The possibilities considered include put options -- which are contracts granting the owner the right, though not the obligation, to sell an underlying asset at a specified price in the future -- and possibly other derivative instruments.
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Owning CoreWeave stock means accepting the volatility that inevitably comes with it. But investors typically don't like companies straying from their core competencies. That may help explain the outsize drop in CoreWeave stock this week.
Howard Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.
CoreWeave (CRWV +0.60%) closed Thursday at $72.91, down 52% from its 52-week high of $153.20. The main reason the stock keeps falling is the cost of its growth: The artificial intelligence (AI) cloud provider borrows heavily to build data centers, and the bill for that debt is growing about as fast as the business itself.
The first quarter showed both sides. Revenue rose 112% year over year to $2.1 billion. But interest expense more than doubled to $536 million, up from $264 million in the year-ago quarter, and the company's net loss widened to $740 million from $315 million. When CoreWeave reported those results in May, the stock sank about 10% as its revenue forecast disappointed investors and its spending forecast grew again.
Image source: The Motley Fool.
This week brought fresh pressure, with shares falling 3.5% on Wednesday and dropping again Thursday as AI infrastructure stocks sold off broadly.
Insiders haven't helped the mood. CEO Michael Intrator sold about 369,000 shares for roughly $31 million in early July, then about 308,000 more for roughly $25 million on July 14, though the sales came under a prearranged trading plan adopted last year.
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And then there's Meta Platforms. Bloomberg reported on July 1 that the social media giant is planning a cloud business, known internally as Meta Compute, that would sell surplus AI computing capacity to enterprise customers. Renting out AI computing capacity is exactly CoreWeave's business. Making matters more complicated, Meta is also one of CoreWeave's largest customers. The two expanded their relationship in April with an agreement worth about $21 billion through 2032.
Demand, notably, is not the problem. CoreWeave's revenue backlog reached $99.4 billion as of March 31, in what management called the strongest bookings quarter in the company's history. Active power topped 1 gigawatt in the first quarter, and management believes the company is on its way to more than 8 gigawatts by 2030.
What would it take to stop the slide? Most likely, interest costs would need to grow far more slowly than they have been, showing the debt-heavy model can scale toward profitability. And investors would need evidence that the nearly $100 billion backlog can convert into revenue at healthy margins, even with a major customer like Meta potentially competing for the same business.
Until then, the pattern of the past month could persist: strong demand headlines, followed by reminders of what that demand costs to serve. The business keeps growing quickly. The stock's problem is the price of funding that growth -- and, for now, the market keeps marking that price down.
Few stocks capture the AI infrastructure boom -- and its risks -- quite like CoreWeave (CRWV 3.58%). The company rents out the high-end computing power that trains and runs AI models, and demand for it has been ferocious. Yet as of this writing, shares sit near $77 -- about 49% below the 52-week high of $153.20.
The latest leg down has a specific cause. Earlier this month, reports surfaced that Meta Platforms plans to build its own AI cloud business and sell excess capacity to outside customers. Meta happens to be one of CoreWeave's largest customers, so the news raised an uncomfortable possibility: one of the company's biggest buyers may be about to become a competitor.
Shares have fallen for four straight sessions since. For dip buyers, a decline like this is tempting. But a lower price only helps if the business underneath it can support the stock. So, which is this, a bargain or a value trap?
Image source: The Motley Fool.
Staggering growth The top line leaves no doubt about demand. In the first quarter of 2026, CoreWeave's revenue more than doubled, rising 112% year over year to $2.1 billion. That followed 168% growth for full-year 2025, so even as the rate cools, the company is still expanding at a pace almost no business its size can match.
The backlog is just as eye-catching. CoreWeave signed more than $40 billion of new contracts during the quarter, lifting its revenue backlog to $99.4 billion. That figure dwarfs the roughly $12.5 billion in revenue it expects to generate this year, and on paper it offers years of visibility.
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Management still guides for $12 billion to $13 billion in revenue this year, with the exit rate climbing toward $18 billion to $19 billion annualized. Few companies grow into their promises this fast.
The physical footprint is scaling to match. The company now holds more than 3.5 gigawatts of contracted power and recently surpassed 1 gigawatt of actual capacity, a milestone only a handful of cloud operators have ever reached.
The trouble is what all of this costs. CoreWeave is borrowing heavily to buy graphics processing units, lease data centers, and secure power, and the bills are climbing faster than sales.
Its first-quarter net loss more than doubled to $740 million, from $315 million a year earlier, and it widened from a $452 million loss in the prior quarter. Net interest expense alone more than doubled year over year, to $536 million, as the debt load grew.
The spending, meanwhile, is only accelerating. Management expects capital expenditures of $31 billion to $35 billion this year, against that same roughly $12.5 billion in revenue. The demand is not in doubt. The economics are.
The Meta problem and the price The Meta news sharpens the risk considerably. CoreWeave holds a roughly $21 billion agreement with Meta that runs through 2032, so one of its largest customers is reportedly building the very capability CoreWeave sells.
To be fair, that agreement still binds Meta as a paying customer for now, which limits the near-term damage. CoreWeave's customer base is broadening, too, with recent deals signed alongside AI labs such as Anthropic and Cohere.
But those customers share a trait -- they are deep-pocketed enough to build their own capacity over time, exactly as Meta is now doing. When one of your biggest buyers decides it can do the job itself, the long-term pricing power of the whole industry arguably starts to look shakier.
Then there's the valuation. CoreWeave isn't profitable, so there's no price-to-earnings ratio to lean on. Measured against sales, its roughly $42 billion market capitalization works out to about 3.3 times this year's expected revenue.
That might look reasonable for a fast-growing software company. But CoreWeave isn't software. It's a capital-intensive, heavily indebted infrastructure business with no profits in sight and a customer list that now includes its newest rival.
So is the sell-off an opportunity or a warning? To me, it's a warning. CoreWeave is executing an ambitious plan in a booming market, and its top-line growth is hard to fault. But the road to durable profits runs through tens of billions in spending, a mountain of debt, and pricing power that its own customers are working to erode. That is more uncertainty than I want to underwrite. I'd stay on the sidelines and look for AI exposure where the path to profitability is clearer.
Power is a major constraint in the artificial intelligence (AI) build-out, and CoreWeave (CRWV 3.58%) is positioned at the center of it. The company has more than 1 gigawatt of active power and is aiming for more than 8 gigawatts by 2030.
Gigawatts have become highly lucrative, with tech giants eager to sign long-term deals for this type of AI infrastructure. Just as AI chips and memory chips produced trillion-dollar stocks in the blink of an eye, power constraints can do the same, and CoreWeave is well-positioned for that scenario.
However, a $1 trillion valuation would require CoreWeave to more than 20x from current levels. How realistic is that, actually? Here's what investors should know when assessing whether CoreWeave can become a $1 trillion company.
Image source: Getty Images.
Dissecting the 8-gigawatt target If CoreWeave can reach its 8-gigawatt target by 2030, it has a real shot at becoming a $1 trillion company. However, that's a major "if," and it also assumes CoreWeave increasingly shifts away from renting data center space and owns a higher percentage of its gigawatts.
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Here's the good part about the math: Since it costs $60 billion to build a 1-gigawatt data center, having 8 gigawatts of data center capacity translates into $480 billion in value. That doesn't include property appreciation or hyperscaler deals.
CoreWeave already has a 3.5-gigawatt pipeline, so it's feasible for the company to expand this pipeline to 8 gigawatts by 2030. CoreWeave has had no issue with signing new deals with hyperscalers. The company signed new long-term deals with Meta Platforms, including a $21 billion expanded AI infrastructure agreement that stretches through December 2032. The total number of megawatts involved in the deal was not disclosed.
The financial realities of building a multi-gigawatt portfolio There is enough demand for an 8-gigawatt portfolio to build a $1 trillion company if all those gigawatts had multiyear contracts and were ready to go. However, CoreWeave may be strained significantly by financial realities on the path to its 8-gigawatt target.
The first financial reality is that it costs $60 billion to build a 1-gigawatt AI data center. How will CoreWeave raise enough money to build the necessary data centers to close its 4.5-gigawatt gap? Financing, tax incentives, and energy deals can help. CoreWeave also needs to fully power its remaining pipeline and reach a deal with hyperscalers for it.
The second financial reality is that CoreWeave will face higher costs from its landlords, which could further hurt margins. The company is already burning through cash, and while competitors like Nebius and Iren can substantially improve margins in the future by owning the land, power, and other resources, CoreWeave's business model does not provide that flexibility.
Landlords will raise prices on CoreWeave, especially as it locks in lucrative long-term deals with tech giants. CoreWeave more than doubled its revenue year over year in Q1 2026, but its net losses also more than doubled in that time frame. That type of business is not sustainable, especially as costs are set to increase significantly.
Look for the pivot to owned power CoreWeave is in the right industry at the right time, but there are better trades for investors who want to multiply their money. Nebius and Iren have much better chances of reaching $1 trillion valuations because they own the power, data centers, and other resources.
CoreWeave's business model is very similar to WeWork, a company that filed for bankruptcy a few years after reaching a $47 billion valuation. WeWork aggressively committed to long-term leases for office space and rented it to various companies, hoping to profit under an arbitrage model. CoreWeave has the same business model, except its business revolves around AI data center capacity rather than office space.
CoreWeave isn't likely to suffer the same fate. Demand for commercial office space collapsed during the pandemic and never truly recovered, which crushed WeWork's business model. CoreWeave is at the center of an industry with insatiable demand.
While a collapse is unlikely, CoreWeave is guaranteed to face margin pressure if it relies heavily on renting AI data center capacity and selling it to customers. CoreWeave owns its AI chips, which helps a little.
Investors should monitor any developments around CoreWeave shifting to own its AI data centers in the future instead of signing leases. If the company can get debt financing on good terms and continue to sign good deals, it could reach a $1 trillion valuation. However, you might get more from your money with other neocloud stocks.
HomeIndustriesInternet/Online ServicesTech StocksTech StocksHigher interest rates may be a problem for the AI-native cloud provider given its ‘unusually high exposure to debt financing,’ analyst saysJuly 15, 2026, 5:08 p.m. ET
Wall Street has long been wary of CoreWeave’s investment-grade worthiness and financing strategies for the artificial-intelligence buildout, but recently the AI-native cloud provider may be facing a new set of pressures: fears over interest rates and memory prices.
CoreWeave’s stock CRWV sank 3.5% on Wednesday to extend its losing streak to five sessions. It has dropped 14.3% during that stretch.
AI cloud computing company CoreWeave is exploring the use of financial derivatives as a potential hedge against a future drop in memory and storage chip prices, according to a person familiar with the matter.
, /PRNewswire/ -- The Shareholders Foundation, Inc. announces that a lawsuit is pending for certain investors in CoreWeave, Inc. (NASDAQ: CRWV) shares.
Investors who purchased shares of CoreWeave, Inc. (NASDAQ: CRWV) prior to March 28, 2025 and continue to hold any of thoseNASDAQ: CRWV shares have also certain options and should contact the Shareholders Foundation at [email protected] or call +1(858) 779 - 1554.
On January 12, 2026, aNASDAQ: CRWV investor filed a lawsuit over alleged securities laws violations by CoreWeave, Inc. The plaintiff alleged that the defendants made false and/or misleading statements and/or failed to disclose that, the defendants had overstated CoreWeave's ability to meet customer demand for its service, that the defendants materially understated the scope and severity of the risk that CoreWeave's reliance on a single third-party data center supplier presented for CoreWeave's ability to meet customer demand for its services, that the foregoing was reasonably likely to have a material negative impact on the Company's revenue, and that as a result, the Company's public statements were materially false and misleading at all relevant times.
Those who purchased shares of CoreWeave, Inc. (NASDAQ: CRWV) should contact the Shareholders Foundation, Inc.
CONTACT:
Shareholders Foundation, Inc.
Michael Daniels
+1 (858) 779-1554
[email protected]
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. Any referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is only provided as a public service. It is not intended as legal advice and should not be relied upon.
Cathie Wood, founder and CEO of Ark Invest, is loading up on an AI stock that the market has been dumping in recent weeks, CoreWeave (CRWV 0.87%).
Ark's largest exchange-traded fund (ETF), the ARK Innovation ETF (ARKK 1.58%), has added more than 100,000 shares of CoreWeave in recent weeks. On July 8, Wood bought $811,600 worth of shares. That followed a $2 million purchase on July 7. Wood also purchased $6.5 million worth of shares on June 29, according to Cathie's Ark.
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ARKK now owns 1.6 million shares of CoreWeave, a roughly $146 million stake. It is the ETF's 17th-largest holding, making up 2.2% of the $6.5 billion portfolio.
Wood is going against the tide, as CoreWeave stock had been in a freefall. Since June 18, when CoreWeave was trading at $118 per share, the stock has plummeted 23% to around $90 per share. There are several reasons why the stock has dropped so sharply.
Image source: Getty Images.
Explosive growth CoreWeave is a cloud computing specialist that builds AI data centers. It rents out computing power to other companies to use to handle their cloud computing needs.
CoreWeave has enjoyed explosive growth, with revenue up 114% year over year in the first quarter to $2.1 billion. Demand remains high, as CoreWeave reached nearly $100 billion in backlog in Q1.
Its outlook calls for revenue of $2.45 billion to $2.6 billion and adjusted operating income of $30 million to $90 million in the second quarter. For the full year, revenue is targeted at $12 billion to $13 billion, with adjusted operating income at $900 million to $1.1 billion.
While the growth is staggering, the concern is high expenses and debt. This is an asset-heavy business that requires massive infrastructure investments. Capital expenditures (capex) were $6.8 billion in Q1, and the company guided for between $7 billion and $9 billion in the second quarter. It also raised its full-year capex forecast to $31 billion to $35 billion on higher component pricing. Previously, the guidance called for $30 billion in capex.
CEO Michael Intrator said on the fourth-quarter 2025 earnings call that it was due to "the extraordinary amount of contracted demand in front of us."
Debt and other concerns The company has accumulated a huge amount of debt -- about $35 billion, up from roughly $2 billion in 2023.
CoreWeave is also unprofitable, reporting a net loss of $740 million in the quarter, up from $315 million in Q1 2025.
Another recent concern is the news that Meta Platforms (META +5.97%), CoreWeave's largest customer, is looking to sell its excess computing power. While nothing is concrete at this point, it raises concerns that Meta's foray into cloud could essentially turn Meta into a competitor, not a partner. CoreWeave stock tanked 14% on the news.
Wood bought these CoreWeave shares after the news broke, so she's buying low and perhaps doesn't view this as a long-term threat. That gamble may work for her, but the average investor without her resources should view CoreWeave cautiously.
SummaryCoreWeave's $3.1 billion HPC-backed financing attracted approximately $19 billion of demand, reinforcing institutional confidence in AI infrastructure financing.First-quarter operating cash flow reached $3.0 billion despite $6.8 billion of CapEx, supported by 71.7% gross margins and a $99.4 billion backlog.Meta Compute triggered a 14% selloff, but CoreWeave's $21 billion take-or-pay agreement protects contracted revenue through 2032.CoreWeave trades near 6.5x forward EV/Sales, well below Nebius and IREN despite stronger revenue visibility and significantly larger contracted demand. Wavebreak/iStock via Getty Images
Although the recent pullback has enhanced the risk/reward profile of CoreWeave (CRWV), the fundamental situation is not fundamentally different. Given my reassessment of the recent events, I think that the market was overreacting to the
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of CRWV, NBIS, IREN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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SummaryCoreWeave is the leading neocloud operator, trading at a discounted 11.9x forward EV/EBITDA versus the sector median of 15x.CRWV's $99.4B backlog is 98% under five-year take-or-pay contracts with major hyperscalers, supporting robust forward revenue visibility.Backlog risk is real; however, thanks to heavy CapEx, CRWV provides quality and dominance for their clients. Realization of contracts is key.I estimate significant, 250%+ upside from current price levels until the end of 2027 based on margin expansion and backlog conversion, as well as improvement.Erik Isakson/DigitalVision via Getty Images
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of CRWV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Michael N. Intrator, CEO and President of CoreWeave, Inc. (CRWV 0.04%), reported a sale of 369,489 shares of Class A Common Stock on July 7, 2026 and July 8, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueShares sold (total)369,489Shares sold (directly held)261,797Shares sold (indirectly held)107,692Transaction value$30.8 millionPost-transaction shares (directly held)2,876,815Post-transaction value$258.9 millionTransaction value based on SEC Form 4 weighted average sale price ($83.37); post-transaction value based on July 08, 2026 market close ($90.00).
Key questionsWhat was the structural nature of this transaction?
Part of the transaction was a conversion-for-sale event involving the conversion of 107,692 Class B shares into Class A. The remainder were from directly-held stock.What is the insider's remaining equity footprint?
Following this sale, Intrator maintains significant exposure to the company through 2,876,815 shares held directly. Furthermore, the insider retains substantial derivative holdings, including ~21.9 million derivative securities held directly and ~30.7 million held indirectly through various family trusts.Which indirect entities were involved in the disposition?
The indirect portion of the sale, totaling 107,692 shares, was executed by Omnadora Capital LLC. While this liquidated the direct Class A position for that entity, other family-related entities, including the PMI 2024 F&F GRAT and the Intrator Family Trust, continue to hold significant derivative positions.How does this sale align with recent stock performance?
The shares were sold at a weighted average price of $83.37 as the company faced a one-year return of -41% as of the July 7, 2026 transaction date. Despite the recent price performance, the insider's remaining beneficial ownership represents approximately 0.53% of the company's $49.1 billion market capitalization.Company OverviewMetricValueShare Price (as of market close 2026-07-08)$90.00Market Capitalization$49.1 billionRevenue (TTM)$6.2 billionNet Income (TTM)-$1.6 billionCompany SnapshotCoreWeave operates a specialized cloud computing platform that delivers high-performance GPU and CPU compute resources, storage solutions, advanced networking capabilities, and fully managed services designed to support generative AI and intensive compute workloads for enterprise clients.The company generates revenue through a flexible consumption-based model, offering customers the choice between virtual server instances and bare-metal infrastructure solutions tailored to their specific computational requirements.CoreWeave primarily serves large enterprises and organizations requiring substantial computational resources for generative AI applications, machine learning workloads, and data-intensive processing operations.CoreWeave operates as a specialized infrastructure provider in the rapidly expanding generative AI compute market, with a market capitalization of $49.1 billion and TTM revenues of $6.2 billion. The company differentiates itself through purpose-built infrastructure optimized for AI workloads, providing enterprises with flexible, scalable alternatives to traditional cloud providers.
As a growth-stage infrastructure company, CoreWeave is positioned to capture significant market share in the emerging AI compute infrastructure segment, though the company is currently operating at a net loss as it invests in capacity expansion and market penetration.
What this transaction means for investorsCoreWeave CEO Michael Intrator’s July 7 and July 8 sale of company stock came at a time when shares were well below the 52-week high of $153.20 reached in 2025. While involving almost 370,000 shares, the disposition does not appear to be a red flag for investors.
Intrator’s sale represented only a small portion of the millions of shares he maintained post-transaction. In addition, the sale was executed as part of a pre-established Rule 10b5-1 plan, making this a non-discretionary transaction. Such plans allow insiders to sell shares at predetermined times to avoid concerns of trading on non-public information.
CoreWeave is seeing strong sales growth thanks to the artificial intelligence boom. In the first quarter, it generated $2.1 billion in revenue compared to $982 million in 2025. The stock is down, however, because the company is not profitable and is burdened with over $25 billion in debt as it seeks to expand its footprint of data centers to house AI systems.
Robert Izquierdo has positions in CoreWeave. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Shares of Meta Platforms (NASDAQ:META | META Price Prediction) are up 6% in Friday morning trading, changing hands at $670 after Thursday’s close of $631.48. The move extends a hot stretch for Meta Platforms stock, which have climbed 15% over the past week.
The catalyst is a rethink of what Meta Platforms is building. A Reuters-reported internal memo and a fresh Bank of America note are reframing Meta Platforms’ AI infrastructure spend as far more capital-efficient than the Street had modeled.
By comparison, some of Meta Platforms’ peers are barely moving. Amazon (NASDAQ:AMZN) shares are down less than 1% at $245.74, while CoreWeave (NASDAQ:CRWV) shares are up less than 1% at $90.40.
Cheaper Gigawatts Fuel the Rally Reportedly, Meta Platforms is building AI capacity at close to $22 billion per gigawatt, versus Bank of America’s prior estimate near $45 billion. Bank of America analyst Justin Post reiterated a Buy rating with an $835 price target on Meta Platforms stock.
The scale is what matters. Meta Platforms is targeting about 14 GW across 2026 and 2027, which lines up with the raised 2026 capex plan of $125 to $145 billion. CEO Mark Zuckerberg has floated the idea of renting out AI compute, with possible offerings likened to Amazon Web Services’ Bedrock (hosted models) and to CoreWeave (raw compute rental).
Meta Platforms also plans a custom chip, Iris, entering manufacturing this fall with Broadcom (NASDAQ:AVGO) and Taiwan Semiconductor (NYSE:TSM). Bank of America notes that Iris is not the source of 2026 cost savings, so the chip is a 2027-plus story for later.
A Direct Shot at AWS and the Neoclouds If Meta Platforms can build capacity at half the cost previously modeled, the economics of an in-house AI cloud become credible. That matters for Amazon, whose AWS unit posted $37.59 billion in Q1 2026 revenue, up 28% year over year, its fastest growth in 15 quarters. It also matters for CoreWeave, which sits between the models and the silicon as a pure-play neocloud.
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The irony is that Meta Platforms is currently CoreWeave’s biggest customer. CoreWeave’s $99.4 billion revenue backlog includes a $35.2 billion total commitment from Meta. Ultimately, Meta Platforms becoming a compute landlord would flip that relationship over time.
The Bear Case Landed the Same Day The European Commission issued preliminary findings Friday that Instagram and Facebook breached the Digital Services Act through addictive design, with a potential fine up to 6% of global turnover, reported to exceed $12 billion. That’s a material overhang for Bank of America that the markets are shrugging off for now, but it doesn’t disappear.
The prediction markets are still leaning hard bullish. Polymarket is pricing a 98% probability of an up day for Meta Platforms stock on July 10, with an 82% probability of hitting $680 by end of July. META stock still trades at a forward P/E ratio of 20x.
What to Watch Next The next catalyst is Meta Platforms’ Q2 2026 report, where guidance sits at $58 to $61 billion in revenue. Investors can watch for whether management formalizes an AI compute rental offering on the call, and whether the EU fine number firms up. Position sizing should reflect the twin realities here: a genuinely improved capex story and a real regulatory tail.
Traders may keep META stock active into the close given the volume of catalysts hitting on the same tape. The bull case just got cheaper to underwrite, but the bear case just got more expensive to ignore.
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LIVINGSTON, N.J.--(BUSINESS WIRE)--CoreWeave, Inc. (Nasdaq: CRWV), The Essential Cloud for AI™, today announced that Gartner named it a Visionary in the 2026 Gartner® Magic Quadrant™ for Cloud AI Infrastructure. From training the largest foundation models to inference, the gap between infrastructure built for AI and infrastructure retrofitted for AI has become the defining constraint for the teams pushing the frontier. The demands of the industry expose every layer of the stack – training runs.
Key Takeaways CoreWeave sees rising AI demand driving record backlog and deeper customer commitments.CRWV topped 1 GW of active power and targets more than 1.7 GW by the end of 2026.CoreWeave added over 400 MW of contracted power, lifting total capacity above 3.5 GW. As organizations race to build and deploy increasingly sophisticated AI models, the need for massive computing power seems to compound. This growing demand has created an emerging opportunity for AI-focused cloud infrastructure providers, like CoreWeave, Inc. (CRWV - Free Report) .
Management highlighted four key themes –rising AI demand across hyperscalers and enterprises, a broader platform supporting training, inference, agentic AI workloads, rapid infrastructure expansion with more than 3.5 GW of contracted power and stronger financing that has secured more than $20 billion in debt and equity this year. AI workloads are shifting from training to inference and enterprise production, driving deeper commitments from existing customers while attracting new enterprise clients. This momentum fueled record backlog additions in the first quarter, including initial Vera Rubin deals alongside continued deployment of Blackwell, Hopper and Ampere capacity, with most of the new business expected to support its 2027 growth targets.
CoreWeave's aggressive infrastructure expansion is a key competitive advantage. It continues to strengthen its competitive edge by rapidly converting scarce AI infrastructure into revenue-generating AI cloud capacity. CRWV surpassed 1 GW of active power in the quarter and remains on track to exceed 1.7 gigawatts by the end of 2026. During the quarter, CoreWeave added more than 400 MW of contracted power, increasing its total to over 3.5 GW, with most of the capacity expected to come online by the end of 2027 through long-term lease agreements.
With strong customer demand, strategic global expansion, innovative AI services and partnerships with leading technology companies, CoreWeave appears well-positioned to capitalize on the AI infrastructure boom.
CRWV's AI Dominance Faces Fierce RivalsNebius Group N.V. (NBIS - Free Report) recently unveiled Nebius AI Cloud Aether 3.6, a wide range of enhancements focused on developer productivity, enterprise-grade security, governance and storage performance. The release also marks the debut of Nebius Echo, an AI-powered infrastructure assistant that represents NBIS’ vision for agentic cloud computing. To strengthen its position in the rapidly evolving AI cloud market, NBIS inked an agreement to acquire Eigen AI, in May. By integrating Eigen AI’s optimization stack into its Token Factory platform, NBIS aims to create a vertically integrated AI inference ecosystem that combines massive compute infrastructure, advanced model optimization and enterprise-ready deployment pipelines.
Microsoft (MSFT - Free Report) capitalizes on AI business momentum and Copilot adoption alongside Azure cloud infrastructure expansion. The Azure AI platform continues to benefit from demand across AI and non-AI services, with customer demand exceeding available capacity. It added another GW of capacity during the quarter and remains on track to double its overall data center footprint within two years. New data center investments were announced across four continents. In May, it signed new agreements with U.S. and U.K. government partners, the Center for AI Standards and Innovation and the AI Security Institute to advance AI testing and safety evaluation frameworks.
CRWV’s Price Performance and EstimatesShares of CoreWeave have gained 25.6% year to date against the Internet Software industry’s fall of 8.7%.
Image Source: Zacks Investment Research
In terms of Price/Book, CRWV’s shares are trading at 8.46X, higher than the Internet Software Services industry’s 4.67X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CRWV’s earnings for the current year has been revised downward over the past 60 days.
Image Source: Zacks Investment Research
CRWV currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The AI infrastructure trade has minted winners across the neocloud sector, but one name has been conspicuously left out. CoreWeave (NASDAQ:CRWV) has fallen 40.57% over the past year, even as Nebius Group (NASDAQ:NBIS | NBIS Price Prediction) has surged 359.62% and IREN (NASDAQ:IREN) has climbed 154.62%. Even NVIDIA (NASDAQ:NVDA), CoreWeave’s largest partner, is up 27.74% over the same stretch.
The Capital Intensity Problem CoreWeave’s Q1 2026 report showed revenue of $2.08 billion, up 111.69% year over year, and a revenue backlog of $99.4 billion. Yet the net loss widened to $740 million, capex hit $7.7 billion in a single quarter, and interest expense doubled to $536 million. Total liabilities reached $50.8 billion, and free cash flow ran to negative $4.7 billion.
CEO Michael Intrator framed the growth story on the earnings call: “We added more backlog in a single quarter than most AI cloud platforms have in their history.” Gross margin, however, compressed from 78% to 68% over five quarters, and adjusted operating margin fell to 1%. Investors also noted a securities fraud class action alleging concealed data center construction delays. Reddit sentiment turned bearish (scores 35 to 42) after the report.
Peers Showing Operating Leverage Nebius flipped adjusted EBITDA positive to $129.5 million in Q2 2026, targeting a ~40% adjusted EBITDA margin for the year on $3.0B to $3.4B in revenue guidance. CEO Arkady Volozh described the strategy: “We are not simply responding to where the industry stands today; we have the knowledge and experience to build the infrastructure, tools, and capabilities for where it will be tomorrow.” Nebius’s market cap now exceeds CoreWeave’s.
IREN, meanwhile, converted its Bitcoin footprint into an AI Cloud platform, signing a $3.40 billion five-year NVIDIA contract with up to $2.10 billion in NVIDIA investment. CEO Daniel Roberts noted, “There are no idle GPUs…all of our operational capacity is fully contracted.” For readers hunting for exposure to picks-and-shovels names benefiting from the buildout, our AI Boom Suppliers research walks through the supplier layer feeding these hyperscalers.
Can CoreWeave Close the Gap? NVIDIA’s $2 billion equity investment and a partnership targeting 5+ GW of AI factories by 2030 remain the strongest structural anchor. Jensen Huang has called the AI factory buildout “the largest infrastructure expansion in human history.” Wall Street analysts hold an average price target of $142.29, implying 53.83% upside from current levels, with 24 Buy ratings against 11 Hold and 2 Sell.
Management projects margin recovery to a low double-digit adjusted operating margin by Q4 2026 and $30 billion+ annualized run rate by 2027. Whether the market rewards that trajectory depends on execution against the debt stack rather than another backlog headline.
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Cathie Wood is a growth investor, but that doesn't mean she'll shy away from buying opportunities when her portfolios are coming under pressure. The co-founder and CEO of Ark Invest added to a few existing positions in her fund family's ETFs on Tuesday.
She was a buyer of CoreWeave (CRWV +3.40%), SpaceX (SPCX +1.17%), and X-Energy (XE 0.85%), which declined 3%, 7%, and 10%, respectively, on Tuesday. Let's take a closer look at the three potentially opportunistic purchases by Ark this week.
Image source: Getty Images.
1. CoreWeave CoreWeave stock's 3% slide on Tuesday may not seem like much, but zoom out. The hyperscaler has seen its value cut nearly in half, down 48% since peaking exactly one year ago today. You can zoom out even more for a different story. CoreWeave went public at $40 a share just 16 months ago, and even closed slightly lower on its first day of trading. The shares have more than doubled from last year's IPO price.
CoreWeave has an origin story as wild as its stock chart. The company was started by a few hedge fund friends, who bought a few GPUs to mine crypto. When the market for digital currencies experienced a pullback, they had a choice to make. They could fold, as so many were doing in their position, or they could take advantage of the situation by picking up more GPUs at fire-sale prices from fellow failed crypto-mining upstarts.
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CoreWeave was targeting two emerging industries that needed the high-performance and low-latency GPUs solutions they could provide: movie studios looking to render special effects and generative AI start-ups. The latter of those two groups put CoreWeave on the map.
Business is booming as CoreWeave rides the booming demand for AI resources. Revenue soared 112% to top $2 billion in its latest quarter, comfortably ahead of the 101% increase analysts were expecting. The top-line beat was edged out by CoreWeave's wider-than-expected loss. It has missed Wall Street's profit targets in three of its first four quarters as a public company.
CoreWeave had a revenue backlog of $99.4 billion by the end of the first quarter. It landed nearly $40 billion in new orders during the quarter, including a $21 billion commitment for Meta Platforms (META 1.88%) in March. In a sign of how quickly the marketplace is changing, CoreWeave took a hit last week, after Bloomberg reported that Meta was starting to offer AI processing to third-party customers. Was the company accounting for more than a fifth of CoreWeave's backlog about to become a competitor?
In the meantime, top-line growth should be stellar through at least the next few quarters. The $12 billion to $13 billion it's currently modeling for 2026 means another year of revenue that more than doubles for CoreWeave.
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2. SpaceX CoreWeave was added to the Nasdaq-100 index last month. SpaceX just got added to the widely followed index on Tuesday. Bulls were expecting billions in SpaceX stock buying by index-tracking fund managers on Tuesday. But that wasn't enough. The stock pulled back 7% on the day.
The company behind Starlink, launch services, and the push for reusable rockets is still comfortably ahead of last month's IPO price of $135, but Tuesday's markdown leaves SpaceX trading 34% below the high it hit on its third day of trading.
The long-term upside may seem as high as the sky that it routinely penetrates. It's already the world's leading satellite internet provider and the top dog in rocket launches. If the local uproar against building out data centers in the area eventually becomes viable in outer space, SpaceX should be the lead horse in the future.
The short-term upside may be limited. It's already one of just seven companies with market caps above $2 trillion. And it's the only one on that list that's currently not profitable. Its $19 billion in trailing revenue is also the smallest in that group, by a large margin.
SpaceX is growing faster than the others on that list, and it's expected to join them in profitability next year. The valuation argument is hard to make for now, but Wood is a believer. Don't be surprised to see her pick up the pace of her purchases if SpaceX buckles below its IPO price later this summer.
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3. X-Energy If CoreWeave investors who bought at the top on July 8 of last year are feeling the pain of losing almost half of their money on paper, peak X-Energy investors have lost more. Like SpaceX, its shares also peaked on its third day of trading earlier this year. In this case, the stock is down a brutal 55% since scoring that April high.
X-Energy is a developer of small modular reactors. Nuclear power is gaining momentum as a clean and efficient means of powering the AI revolution. X-Energy has the advantage of more than 100 active projects, even if it will be a long time before they start seeing the light of day. Beyond the rich pipeline, X-Energy has cleared many regulatory hurdles. The springtime IPO left it flush with cash. It just needs to get started.
Unlike CoreWeave and SpaceX, X-Energy is a broken IPO. It hit the market at $23 three months ago, and it's now trading in the teens. It has faced some reactor design and construction delays, but this was always going to be a stock for patient investors.
CoreWeave remains the leading neocloud with a $100 billion revenue backlog, yet trades at a depressed valuation due to debt and competitive fears. Meta Platform's AI cloud ambitions are misunderstood; META's long-term capacity needs likely reinforce, not threaten, CRWV's revenue pipeline. CRWV trades at only 2x 2028 EV/S target, with EBITDA forecasted at 70% of revenues and significant cash generation underway.
CoreWeave (NASDAQ:CRWV) has been one of the most punished AI infrastructure names of the summer, and I think that has created an opportunity. The stock closed at $81.75 on July 2, 2026, down 31.46% over the past month and 46.14% over the past year.
Our 24/7 Wall St. price target for CoreWeave is $167.48, implying 104.88% upside, and I rate the stock a buy with medium (roughly 50%) confidence.
24/7 Wall St. Price Target Summary Metric Value Current Price $81.75 24/7 Wall St. Price Target $167.48 Upside 104.88% Recommendation BUY Confidence Level 50% How CoreWeave Got Cut in Half The collapse from $151.77 one year ago to today has been driven by three overlapping narratives. A securities fraud class action alleges CoreWeave concealed data center construction delays and understated reliance on a single third-party data center supplier.
Debt has surged from $2 billion in 2023 to $35 billion, and insiders have been unloading, including CEO Michael Intrator, who sold roughly $37.7 million in shares on June 30, 2026. That backdrop overshadowed a strong Q1 2026: revenue of $2.08 billion, up 111.7% year over year, with a revenue backlog that reached nearly $100 billion after Meta added a $21 billion commitment.
Why Bulls See a Breakout Ahead The bull case rests on scarcity. CoreWeave has surpassed 1 GW of active power, has contracted more than 3.5 GW, and is targeting 8 GW by 2030. Backlog visibility has gone from $30.1 billion in Q2 2025 to $99.4 billion in Q1 2026. NVIDIA closed a $2 billion Class A stock investment and named CoreWeave its Exemplar Cloud for inference on GB200 NVL72.
Cantor Fitzgerald carries a Buy rating with a $167 target, and Jim Cramer suggested the real backlog may be materially larger than reported. In our upside scenario, CoreWeave reaches $175.62 over 12 months.
What Could Go Wrong The bear case is real. Q1 2026 free cash flow was -$4.71 billion, capex hit $7.70 billion in a single quarter, and interest expense doubled to $536 million. Total liabilities reached $50.81 billion against $4.76 billion in shareholders’ equity.
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It should be noted that bulls would argue the capex spike reflects fulfilling the Meta and OpenAI commitments, and operating cash flow of $2.98 billion plus a $8.5 billion non-recourse investment-grade term loan gives management runway. Still, coordinated insider selling and the securities lawsuit weigh on sentiment. Our bear scenario lands at $134.46 over 12 months.
The Setup: Backlog Quality vs. Balance Sheet Strain I’m at buy with a 24/7 Wall St. price target of $167.48 and 50% confidence. The factor that tips the scale is backlog quality: $99.4 billion in backlog from customers like Meta, OpenAI, and Anthropic represents committed, contracted demand.
The thesis strengthens if margin expansion accelerates and the securities suit gets contained. The thesis weakens if Q2 2026 shows another double-digit EPS miss or if free cash flow deterioration worsens beyond the current trajectory.
Looking further ahead, here is where our model projects CoreWeave could trade, assuming current growth trajectories and market conditions hold.
Year 24/7 Wall St. Price Target 2026 $110.45 2027 $167.48 2028 $228.59 2029 $312.01 2030 $425.86 These projections assume CoreWeave continues converting its backlog into revenue and progressing toward 8 GW of contracted power. Significant upside or downside could result from AI capex reversal, litigation outcomes, or NVIDIA supply dynamics.
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CoreWeave (CRWV 3.41%) has been struggling of late, and over the past year, its share price has been cut nearly in half. The company has experienced incredible growth due to artificial intelligence (AI) and businesses seeking out compute power, but it's been facing headwinds of late.
Recently, there's been some bad news for investors, with tech giant Meta Platforms announcing that it plans to create a business to sell excess compute power. Not only does that mean more competition for CoreWeave, but it also highlights a fairly big risk with the stock.
Image source: Getty Images.
CoreWeave's fundamental problem is a lack of moat While CoreWeave has benefited from surging AI-related demand for compute power, the big risk with its business is that there is no defendable competitive advantage, also known as a moat, to protect it from competition. That's why when big tech companies such as Meta offer up their excess compute power, it can have a devastating impact on CoreWeave's growth prospects. If the companies that once were in need of compute capacity recognize they don't need as much and begin selling it, that's bad news on multiple fronts for CoreWeave, as it signals an increase in competition and less demand.
At that stage, what CoreWeave may be left to do is to compete on price, which would make it more challenging for the company to get out of the red. Last year, while the company reported $5.1 billion in revenue, more than doubling the $1.9 billion it posted in the previous year, its net loss actually grew from $937 million to $1.2 billion.
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This is a highly risky and speculative stock to own As long as tech companies continue to invest heavily in AI, CoreWeave has the potential to grow significantly and see its share price rise. But as there are signs that isn't the case, such as companies signaling that they don't need as much compute power, then that can end up having the opposite effect, which is why CoreWeave's stock has been sinking of late.
CoreWeave is a speculative buy. For investors who believe there is still incredibly strong demand for all things AI-related, then CoreWeave may seem like a bargain. But for those who are a bit more skeptical, which is the group I'd fall into, it may not be as convincing that CoreWeave is a good buy right now, despite its reduced valuation. With significant losses, no significant competitive advantage, and an uncertain future, CoreWeave is an incredibly risky stock, and there's still plenty of room for it to fall further.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in CRWV over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA, META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
CoreWeave (CRWV 4.58%) stock suffered a double-digit pullback in this week's shortened trading, which saw the market closed on Friday in advance of the July 4 holiday. The company's share price fell 13.2% across the stretch.
While the S&P 500 gained 1.8% and the Nasdaq Composite climbed 2.1% this week, many artificial intelligence (AI) hardware stocks got hit with pullbacks. In addition to a general rotation trend out of AI hardware, CoreWeave stock saw valuation pullbacks in conjunction with news that Meta Platforms is entering the AI processing services market.
Image source: Getty Images.
CoreWeave stock sinks as Meta gears up for AI processing business Meta Platforms is getting ready to offer AI processing to third-party customers, effectively moving into direct competition with CoreWeave. In addition to CoreWeave facing a new competitive threat from a major tech giant, the move also caused concerns about the pricing outlook across the broader AI hardware tech stack.
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Meta's AI processing push has AI valuation implications Meta has been spending massively to build out AI infrastructure resources to compete with other leading technology players, including Microsoft, Amazon, and Alphabet. While the broader AI arms race between these companies is likely to continue, Meta's push to start offering AI processing as a service could be an indication that the company believes that expanding compute capacity for its own internal needs is starting to become less of a priority.
If that's the case, it could have big implications for CoreWeave's business. While demand for AI processing continues to look strong, the company has taken on huge debt in order to facilitate its AI infrastructure buildout. If demand growth for AI processing hardware starts to soften, it's possible that CoreWeave could see significant pricing-power contraction -- and that development could prove damaging to the bullish valuation case in conjunction with the company's heavy debt load.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.
CoreWeave (CRWV 4.58%), a neocloud provider of AI infrastructure services, went public at $40 per share on March 28, 2025. By June 20, it had reached a record high of $183.58. But as of this writing, it trades at about $82. Let's see if that pullback is a good buying opportunity.
Image source: Getty Images.
What does CoreWeave do? CoreWeave was originally an Ethereum miner, but it repurposed its GPUs to remotely process AI tasks after the crypto market crashed in 2018. It subsequently expanded its data center count from just three centers at the end of 2022 to 49 centers today, and it supports that infrastructure with more than 250,000 Nvidia (NVDA 1.39%) GPUs.
CoreWeave's AI-optimized servers can handle advanced AI workloads 35 times faster and 80% cheaper than larger cloud infrastructure platforms like Amazon Web Services (AWS) and Microsoft Azure. Its largest customers include Microsoft, Meta (META 4.80%), OpenAI, Anthropic, Nvidia, and the quantitative trading firm Jane Street.
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How fast is CoreWeave growing? CoreWeave's revenue surged from $16 million in 2022 to $5.1 billion in 2025. Its backlog swelled to $99.4 billion at the end of the first quarter of 2026, and analysts expect its annual revenue to grow at a three-year CAGR of 99% to $40.3 billion in 2028. That's a jaw-dropping growth rate for a stock that trades at just 3.5 times this year's sales.
However, CoreWeave's net loss also widened from $31 million in 2022 to $1.2 billion in 2025, and analysts expect it to nearly double to $2.2 billion by 2028. It also ended its latest quarter with $50.8 billion in total liabilities, giving it a high debt-to-equity ratio of 10.8. When we include that debt in its enterprise value of $86.3 billion, it looks a bit pricier at 6.8 times this year's sales.
Is CoreWeave's pullback a buying opportunity? CoreWeave has plenty of growth potential, but investors aren't sure it can execute its expansion without breaking the bank. When CoreWeave's stock hit a record high last summer, investors were expecting the Fed to cut interest rates, making it cheaper for the company to expand.
But today, more analysts expect interest rate hikes in the second half of 2026 if inflation doesn't cool off. That's why investors backed away from unprofitable, high-growth companies like CoreWeave. Competition from other neocloud companies and Meta, which recently decided to sell some of its excess cloud computing power, is exacerbating that pressure. However, CoreWeave should become appealing again as interest rates stabilize, it locks in more customers, and economies of scale kick in. So if you're looking for an AI stock to hold for a few years instead of a few quarters, CoreWeave's latest pullback could be a golden buying opportunity.
Leo Sun has positions in Amazon and Meta Platforms. The Motley Fool has positions in and recommends Amazon, Ethereum, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
Despite being one of the market's biggest AI winners, CoreWeave, Inc. CRWV stock has plunged roughly 24% over the past month as investors reassessed lofty valuations and growing competitive risks in the AI infrastructure space. Shares have underperformed the Zacks Internet-Software Market's fall of 3.4% as well as the Zacks Computer & Technology sector and the S&P 500 Composite decline of 6.2% and 1.8%, respectively, in the same period.
Shares of CoreWeave, Inc. (NASDAQ:CRWV) are falling on Thursday. The stock is still in a downtrend and may be headed lower.
The shares have broken a support level. This is a bearish dynamic, and it is why CoreWeave is the Stock of the Day.
Support is a price level at which there is strong demand for a stock. In other words, there is a large number of buy orders.
If a stock is in a downtrend, it is because there isn’t enough demand for the shares. Traders and investors who wish to sell are forced to undercut each other to draw buyers into the market. This forces the shares into a downtrend.
When a stock reaches a support level, the dynamic changes. There are enough buy orders to absorb all of the sell orders. This is why downtrends end or pause when they reach them.
Sometimes stocks rally after they reach support. You can see on the chart that this is what happened with CoreWeave last month when it reached the $92 level.
But now this support has been broken. The shares are below $92.
When support breaks, it can be a bearish dynamic. It shows that the buyers who created the support have left the market. They have either finished or canceled their orders.
With this demand off the market, the stage could be set for a move lower. Once again, sellers will be forced to undercut each other. This could put CoreWeave into a new downtrend.
If it does trend lower, there is a good chance it finds support around $70. This level was support before, and these levels can stay intact for a long time.
Some of the people who sold around $70 now regret doing so because the price is higher. A number of them have vowed to buy their shares back if they can do so at their selling price.
If CoreWeave drops to this level, their buying could create support. The shares may even reverse and head higher.
CRWV Price Action: CoreWeave shares were down 5.15% at $81.27 at the time of publication on Thursday, according to Benzinga Pro data.
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Characteristics and Risks of Standardized Options: https://bit.ly/2v9tH6D. Headlines of Meta Platforms selling excess AI compute sent shares of the Mag 7 giant soaring Wednesday, though that momentum largely reversed during Thursday's trading session.
CoreWeave (NASDAQ:CRWV) is under real pressure. The stock fell almost 14% on Wednesday, market cap has slipped under $50 billion to $46.75 billion, and the balance sheet is finally getting the attention bulls spent a year asking you to ignore.
CoreWeave rents GPU compute to AI customers, with Meta and OpenAI anchoring a $99 billion contracted backlog. It got there by borrowing aggressively against future revenue and against the GPUs themselves. That worked when the story was pure growth. It works less well when interest expense starts eating the income statement.
How a $166 stock became an $85 stock Shares are down 31% the past month and off a 52-week high of $166.22. Today’s move traces to a securities lawsuit filed June 29 alleging the company overstated its ability to meet customer demand and understated its reliance on a single third-party data center supplier. CEO Michael Intrator sold 307,692 shares on June 23 for roughly $32.87 million under a 10b5-1 plan, one of several eight-figure insider sales in June.
However, revenue grew 111.6% year over year last quarter to $2.08 billion, beating consensus. The backlog compounds, NVIDIA took a $2 billion equity stake, and active power crossed 1 GW with an 8 GW target for 2030. Analysts carry an average price target of $143.41. If AI inference demand compounds at the pace bulls model, backlog conversion alone would justify a rerating.
The balance sheet is the story The total debt sits at $35.15 billion against $3.02 billion of cash. Capital lease obligations add another $10.29 billion. Interest expense doubled year over year to $536 million in a single quarter. Free cash flow ran negative $4.71 billion because capex hit $7.70 billion. Debt has climbed from roughly $2 billion at year-end 2023 to $35 billion today. That is the story now.
If you already own it, the case for patience is that operating cash flow was positive at $2.98 billion last quarter and the backlog is contracted. Composite sentiment sits at 57.37, neutral with medium confidence. Holding here underwrites a friendly refinancing environment, firm GPU pricing, and a lawsuit that stays contained. Three variables, all outside management’s control.
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CRWV currently trades just above $85. The consensus target of $143.41 implies roughly 63% upside, drawn from 3 Strong Buy, 19 Buy, 11 Hold, 1 Sell, and 1 Strong Sell ratings. Those targets were set before today’s drop and should be treated as one input among many. Year to date the stock is up 39%. Over the past year CRWV has lost 38.95% against a positive S&P.
Why the debt wins the argument At this price, the debt argument wins the day.
Interest expense is compounding faster than backlog converts to GAAP revenue, and each new data center draws more non-recourse debt against equipment that depreciates in three to five years. Current liabilities of $17.82 billion already exceed current assets by more than three times. If hyperscaler AI capex softens by even a quarter, there is no margin of safety.
The lawsuit matters mainly because discovery could surface uncomfortable detail about that single-supplier disclosure. Persistent insider selling, including from the CEO, tells you how the people closest to those disclosures are positioning.
What would invalidate the thesis is a clean quarter where free cash flow inflects and interest coverage stabilizes. Until that arrives, the risk-reward tilts against holders. A 63% analyst upside means little when the downside question is solvency.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and CoreWeave, Inc. Class A Common Stock didn't make the cut. Grab the names FREE today.
Key Takeaways CoreWeave launched ARIA to analyze experiment data and automate AI research workflows. CRWV said ARIA creates live reports and visualizations that update with new experiment data. CoreWeave expanded its agentic AI platform across training, inference, observability and research. CoreWeave, Inc. (CRWV - Free Report) recently announced the launch of CoreWeave ARIA (AI Research & Iteration Agent), an AI research agent integrated into Weights & Biases (W&B) that analyzes experiment data, uncovers insights and supports continuous improvement of AI models and agents. Developed using W&B Weave, CoreWeave’s agent development platform, ARIA is introduced alongside the general availability of W&B Weave’s agent development capabilities. The agent can analyze thousands of experiments and tens of thousands of metrics in minutes, helping researchers generate reports, create sweep configurations from natural language and automate routine research tasks.
Designed to simplify AI research workflows, ARIA reduces the manual effort involved in configuring dashboards, building analysis notebooks and extracting insights from large volumes of experiment data. Built on CoreWeave’s experience supporting AI training at scale, including nearly 1 billion tracked runs and trillions of metrics in Weights & Biases, ARIA is intended to accelerate the research cycle by assisting with hypothesis generation, experiment execution, result evaluation and recommendations for next steps.
ARIA creates live W&B workspaces, reports and visualizations, including heat maps, parallel coordinate plots and bar charts that update automatically as new experiment data is added. It also loads the complete project context at the start of every interaction, enabling analysis across projects and team experiments to identify patterns that would be difficult to detect manually. The agent is also available through the W&B mobile app, allowing researchers to monitor experiments and review findings from anywhere.
ARIA expands CoreWeave’s unified agentic AI platform by integrating research capabilities with training, inference and observability through W&B Weave. The company also highlighted the strength of its AI infrastructure, citing record-setting MLPerf training and inference results, Platinum rankings in SemiAnalysis ClusterMAX 1.0 and 2.0, and the top ranking for inference speed and price-performance for Moonshot AI’s Kimi K2.6 and K2.7 Code in independent Artificial Analysis benchmarks.
AI adoption is accelerating rapidly, expanding its target market, customer base and platform opportunities. Demand continues to strengthen as existing clients expand and new enterprise verticals adopt AI more broadly. CoreWeave has expanded its platform to support training, inference and agentic AI workloads.
Taking a Look at CoreWeave’s CompetitorsNebius Group N.V. (NBIS - Free Report) is benefiting from accelerating demand for AI infrastructure as it advances its vision of becoming an AI-native hyperscaler. The company increased its contracted power capacity from more than 2 gigawatts to over 3.5 gigawatts in three months and is targeting at least 4 gigawatts this year. A new Pennsylvania site with 1.2 gigawatts of capacity further supports its expansion strategy. NBIS is also strengthening its vertically integrated AI cloud platform with services across the AI lifecycle, while acquisitions of Tavily, Eigen and Clarifai, along with an expanded NVIDIA partnership, enhance its inference and agentic AI capabilities.
Amazon.com Inc. (AMZN - Free Report) continues strengthening its AI leadership through AWS, expanding AI infrastructure, custom chips and generative AI services. Its chips business, including Graviton, Trainium and Nitro, surpassed a $20 billion annual revenue run rate with triple-digit growth. AWS secured major AI infrastructure commitments from OpenAI and Anthropic while deploying more than 2.1 million AI chips and expanding NVIDIA GPU availability. Amazon Bedrock achieved 170% quarter-over-quarter growth in customer spending, added advanced AI models and introduced managed agents. The company also expanded AI-powered enterprise applications, accelerated developer adoption of Kiro and launched Amazon Bio Discovery to advance AI-driven drug discovery and scientific research.
CRWV Price Performance, Valuation and EstimatesShares of CoreWeave have gained 11.5% in the past six months against the Internet Software industry’s fall of 8%.
Image Source: Zacks Investment Research
In terms of Price/Book, CRWV’s shares are trading at 7.98X, higher than the Internet Software Services industry’s 4.7X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CRWV’s earnings for the current year has been revised downward over the past 60 days.
Image Source: Zacks Investment Research
CRWV currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SummaryMeta Platforms, Inc. is evaluating entry into the cloud compute market, leveraging excess compute capacity to generate new revenue streams and offset soaring AI capex.Market fears over META's potential competition triggered sharp selloffs in Nebius and CoreWeave, despite their robust backlog growth and strategic customer diversification.META remains highly compute-constrained, suggesting continued reliance on partners like NBIS and CRWV, whose forward sales multiples have become more attractive amid recent volatility.I remain bullish on NBIS and CRWV, viewing current volatility as an opportunity to accumulate positions ahead of further clarity from META and neocloud earnings. J Studios/DigitalVision via Getty Images
Investment Thesis Speculation about Meta Platforms, Inc. (META) entering the cloud compute market burst onto the scene yesterday, catapulting the social media giant’s shares higher.
A Bloomberg report highlighted the strategic options Meta Platforms
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Wednesday gave the artificial intelligence (AI) cloud specialists a preview of their biggest structural risk: the customer that becomes a competitor. Bloomberg reported that Meta Platforms is developing a cloud business that would sell AI computing power -- including, possibly, raw computing capacity of the kind specialist providers rent out today. Shares of CoreWeave (CRWV 5.36%) plunged 13.9% to $85.68, and Nebius Group (NBIS 9.32%) sank 17% to $229.18.
The reaction wasn't just about new competition. Meta is one of the biggest customers both companies have -- CoreWeave has disclosed a $21 billion commitment from Meta, while Nebius landed an agreement with Meta worth up to $27 billion. A Meta that builds enough capacity to sell the excess is a Meta that may eventually rent less of it.
With CoreWeave now down about 48% from its 52-week high of $166.22 and Nebius down about 24% from its high of $299.86, which beaten-down stock is the better rebound bet? The answer comes down to what a dollar invested in each buys you in growth, contracted revenue, and balance-sheet risk.
Image source: Getty Images.
CoreWeave: enormous backlog, enormous debt Of the two companies, CoreWeave is the scale leader. First-quarter revenue rose 112% year over year to $2.08 billion, and the company's revenue backlog reached $99.4 billion -- including that Meta commitment -- with more than 3.5 gigawatts of contracted power. Management also reaffirmed its full-year revenue guidance of $12 billion to $13 billion.
"AI natives and enterprise customers are choosing CoreWeave because we sit between the models and the silicon," said CEO Michael Intrator in the company's first-quarter earnings release.
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The trouble is what it costs to build ahead of that backlog. CoreWeave's first-quarter net loss widened to $740 million from $315 million a year earlier, and its total debt reached $24.9 billion after it spent $7.7 billion on property and equipment in the quarter alone. Interest expense doubled year over year to $536 million -- nearly half of the company's $1.16 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). And that adjusted EBITDA margin compressed to 56% from 62% a year earlier.
At about $46 billion in market value, the stock trades at roughly 3.7 times this year's expected revenue -- cheap-sounding, until you remember the equity sits beneath nearly $25 billion of debt and widening losses.
Nebius: faster growth, cleaner books Nebius is far smaller but growing far faster. First-quarter group revenue rose 684% year over year to $399 million, and annualized run rate revenue jumped to $1.9 billion from $1.25 billion just one quarter earlier. Management is guiding for $3 billion to $3.4 billion of revenue in 2026 and a run rate of $7 billion to $9 billion by year-end.
Profitability is arriving alongside the growth. The AI cloud business's adjusted EBITDA margin nearly doubled sequentially to 45%, and the group generated $2.3 billion of positive operating cash flow in the quarter, helped by upfront customer payments. Nebius ended March with $9.3 billion in cash after raising $6.3 billion during the quarter, including a $2 billion investment from Nvidia. Its adjusted net loss was a comparatively modest $100.3 million.
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The catch is the price. At about $58 billion in market value, Nebius trades at roughly 18 times the midpoint of this year's revenue guidance -- almost five times CoreWeave's forward sales multiple. Buyers are paying for the trajectory, not the present.
Both companies face the same two structural risks Wednesday exposed: heavy dependence on a handful of tech giants and the possibility that those giants' own build-outs eventually soften AI computing prices. Neither stock is a conservative investment, and I'd keep either position small.
But if I had to pick one of these two stocks to buy, it would be Nebius. CoreWeave's cheaper valuation comes with $25 billion of debt and interest costs consuming nearly half its adjusted EBITDA. Further, its margins are moving in the wrong direction. Yes, Nebius costs more per dollar of near-term revenue, but it pairs faster growth with expanding margins, positive operating cash flow, and enough cash to keep building without leaning nearly as hard on debt.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of CRWV, META, MSFT, GOOGL, AMZN, NVDA, ORCL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. The investments and strategies discussed within this article are solely my personal opinions and commentary on the subject. This article has been written for research and educational purposes only. Anything written in this article does not take into account the reader’s particular investment objectives, financial situation, needs, or personal circumstances and is not intended to be specific to you. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters. Just because something may be an enticing investment for myself or someone else, it may not be the correct investment for you.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
SummaryCoreWeave, Inc. maintains a Strong Buy rating, supported by a $99.4 billion backlog and sold-out 2026 capacity.CRWV trades at a forward sales multiple far below peers Nebius and IREN, despite triple-digit revenue growth and rising pricing power.Backlog quality has improved, with investment-grade customers now comprising over 70% of future commitments and robust pricing momentum across its fleet.Balance sheet risk exists due to high capex and negative free cash flow, but contracted demand and margin expansion potential outweigh near-term CRWV funding concerns. quantic69/iStock via Getty Images
CoreWeave, Inc. (CRWV) just posted its strongest bookings in history. Backlog climbed to $99.4 billion, the company sold out of its 2026 capacity, and it even raised its prices across its fleet. Then the stock sold off with every
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
CoreWeave is rated Buy, downgraded from Strong Buy, due to NBIS's superior risk/reward profile despite CRWV's industry leadership. CRWV's $100B backlog, expanding customer base, and robust AI software offerings underpin strong revenue growth and improving customer concentration risk. Significant debt ($35B) and ongoing unprofitability persist, but management has reduced the weighted average cost of debt and secured ample liquidity.
CoreWeave (NASDAQ: CRWV) and Nebius Group (NASDAQ: NBIS | NBIS Price Prediction) both reported first quarter results that reshape how investors should think about AI cloud infrastructure. CoreWeave leaned into raw US scale, banking a $99.4 billion backlog. Nebius, run out of the Netherlands, delivered +841% YoY AI Cloud growth on a much smaller base while pushing aggressively into US soil.
Backlogs Carry CoreWeave. Margins Carry Nebius. CoreWeave posted $2.078 billion in revenue, up 111.7%, edging past estimates. That top line rests on a fresh $21 billion Meta commitment plus multi-year Anthropic and OpenAI work. CEO Michael Intrator called it “the strongest bookings quarter in CoreWeave’s history”. The catch: a $740 million net loss, $7.695 billion in quarterly capex, and interest expense doubling to $536 million. That growth carries a real cost.
Nebius told a different story. Revenue of $399 million missed the $593.19 million consensus, yet the AI Cloud unit ran at a 45% adjusted EBITDA margin, and cost of revenue collapsed from 49% to 26%. Arkady Volozh framed it as building “the infrastructure, tools, and capabilities for where it will be tomorrow.” That premium posture is the point.
US Powerhouse Versus European Full Stack Operator Lens CoreWeave Nebius Active Power 1+ GW 800MW to 1GW target Backlog / RPO $99.4B backlog $33.59B RPO Core Bet Inference at hyperscaler scale Full stack cloud plus subsidiaries Key Vulnerability $50.814 billion in liabilities Meta concentration, $10.04B convertible debt CoreWeave sits “between the models and the silicon”, tightening around inference on NVIDIA GB200 systems. Nebius spreads wider, running Avride robodelivery (174,000+ deliveries), TripleTen education, and the ClickHouse stake that produced a $780.60M non-cash gain. That optionality is real, but it complicates the story.
The Next Test Is Cash Burn Discipline I want to see whether CoreWeave can convert that $99.4 billion backlog without perpetually negative free cash flow (-$4.711 billion in Q1). For Nebius, the tell is whether the $3.0B to $3.4B 2026 revenue guide holds after a Q1 miss, and whether Pennsylvania and Missouri AI factories light up on schedule. Both companies pulled in $2 billion NVIDIA equity checks, a signal I read as supply chain insurance more than validation.
Why I Lean CoreWeave for Scale, Nebius for Upside For me, CoreWeave looks like the sturdier bet on raw US AI capacity. The stock is down 38.95% over the past year to $99.54, and it trades at roughly 8x sales versus Nebius near 76x. If you want defensive exposure to hyperscaler AI spend, CoreWeave’s US pipeline and Meta anchor look durable. If you prefer sharper upside variance and can stomach a 399.13% one-year run and premium valuation, Nebius fits a growth-believer profile. Both names carry meaningful risk if AI capex signals wobble into the back half of 2026.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Nebius Group didn't make the cut. Grab the names FREE today.
