On Friday, CoreWeave (CRWV) shares fell sharply by 11.4%, hitting an intraday low at $71.67 before closing near $71.88. This movement came after the stock had closed at $81.10 on Thursday, marking a notable retreat amid active trading volumes of roughly 25.2 million shares.
The plunge followed back-to-back analyst downgrades from Jefferies and Citigroup earlier that week, both cutting their ratings from Buy to Hold. These shifts pressured a stock already down significantly from its 52-week high of $153.20.
Mixed Analyst Views Amid Strong Revenue Growth
Despite these downgrades, several analysts maintain optimism. Roth Capital and Rosenblatt continue to recommend buying CoreWeave, with price targets set at $150 and $250 respectively. Robert W. Baird also initiated coverage with an Outperform rating, targeting $100, while Oppenheimer raised its price target to $150, reaffirming Outperform.
MarketBeat data shows most analysts favor the stock: out of 37, 21 suggest Buy and 14 advise Hold. The average price target of $136.25 implies a potential rise well above current prices.
CoreWeave's Q1 revenue surged 111.6% year-over-year to $2.08 billion, a strong top-line gain. However, earnings per share disappointed at -$1.40, missing estimates by $0.23. Profitability remains a concern with net margins at -25.57% and return on equity at -43.07%. The company carries a high debt-to-equity ratio of 3.68 and faces limited liquidity based on quick and current ratios around 0.31.
