CoreWeave Experiences 6.5% Stock Decline Amid Analyst Reactions
CoreWeave Inc. (NASDAQ:CRWV) saw its stock price drop by 6.5% on Friday, closing at $106.75 after hitting a low of $103.11 during trading. The decline marked a significant reduction in trading activity, with approximately 5,818,428 shares exchanged, a 69% decrease from its average daily volume of 18,967,873 shares. The stock had previously closed at $114.13, indicating a challenging day for investors.
Analyst Ratings and Market Reactions
Investment analysts have expressed mixed sentiments regarding CoreWeave’s stock. Argus initiated coverage on July 11, 2023, issuing a “buy” rating and setting a price target of $200.00. Conversely, the Goldman Sachs Group adjusted their price target from $54.00 to $61.00 while maintaining a “neutral” rating, as noted in their report on May 16, 2023. Deutsche Bank Aktiengesellschaft began coverage on April 22, 2023, issuing a “hold” rating with a target of $45.00.
Additionally, JPMorgan Chase & Co. raised their price target from $43.00 to $66.00 and assigned an “overweight” rating as of May 16, 2023. HC Wainwright reaffirmed a “neutral” rating on July 14, 2023. Overall, three analysts have rated the stock as a sell, eighteen maintain a hold rating, while five and one analyst have assigned buy and strong buy ratings, respectively. According to MarketBeat.com, the consensus rating currently stands at “Hold” with an average price target of $90.20.
Quarterly Earnings and Institutional Activity
CoreWeave reported its quarterly earnings on May 14, 2023, revealing a loss of ($0.83) earnings per share (EPS), falling short of the consensus estimate of ($0.16) by ($0.67). This disappointing financial performance may have contributed to investor hesitancy.
Several institutional investors have adjusted their stakes in the company recently. Notably, Cisco Systems Inc. acquired a new position valued at approximately $173.5 million during the second quarter. Similarly, Sivia Capital Partners LLC and Sumitomo Mitsui Trust Group Inc. invested $39.8 million and $34.3 million, respectively. CWM LLC increased its stake by 283% during the same period, now holding 166,663 shares valued at $27.2 million after acquiring an additional 123,147 shares. Carnegie Investment Counsel also entered the market with a new stake valued at approximately $15.1 million.
CoreWeave, founded on September 21, 2017, specializes in advanced AI computing solutions for a wide range of clients, from large enterprises to emerging startups. Headquartered in Livingston, New Jersey, the company continues to attract attention in the rapidly evolving tech landscape.
