CoreWeave (NASDAQ:CRWV) Shares Down 18.5% on Disappointing Earnings

Shares of CoreWeave Inc. (NASDAQ:CRWV) dropped 18.5% during trading on Friday following a dissappointing earnings announcement. The stock traded as low as $75.66 and last traded at $79.56. Approximately 67,500,459 shares were traded during mid-day trading, an increase of 142% from the average daily volume of 27,922,311 shares. The stock had previously closed at $97.63.

The company reported ($0.89) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.61) by ($0.28). CoreWeave had a negative return on equity of 35.39% and a negative net margin of 22.75%.The company had revenue of $1.57 billion during the quarter. The business’s quarterly revenue was up 110.4% on a year-over-year basis.

CoreWeave News Roundup

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: Very strong demand/backlog and revenue growth: Q4 revenue was $1.57B (+~110% YoY) and fiscal 2025 revenue topped ~$5.1B; backlog expanded to roughly $66.8B and management guided FY‑2026 revenue to ~$12–13B, underscoring continued AI-driven demand. CoreWeave: From Growth Story To Capital Story
• Positive Sentiment: Beat on revenue and product progress: CoreWeave topped revenue estimates and launched services (e.g., object storage) while highlighting capacity ramps that should convert backlog into revenue over time. CoreWeave Reports Strong Q4 and FY2025 Results
• Neutral Sentiment: Mixed analyst action — some firms raised targets or reaffirmed overweight/Buy ratings while others trimmed targets or moved to Neutral/Hold; overall street targets remain elevated but commentary is cautious on debt and spending. Reuters: CapEx doubles, market reaction
• Neutral Sentiment: Investor events scheduled — management will present at Morgan Stanley and Cantor investor conferences (early March), offering opportunities for further color on capex plans and timelines. Investor conference notice
• Negative Sentiment: Earnings miss on EPS and wider GAAP loss: Q4 EPS of ($0.89) missed consensus and GAAP loss widened; interest expense jumped materially, pressuring near-term profitability despite strong adjusted EBITDA. MarketBeat: Q4 results
• Negative Sentiment: Big increase in capital spending and debt — management signaled a large CapEx program (management cited $30–$35B CapEx) and financing moves (loan syndication/equity support reported). The planned doubling of capex stoked margin concerns and heightened execution risk. Reuters: CapEx doubles, margin concerns
• Negative Sentiment: Multiple securities-class-action filings and broad law-firm notices alleging disclosure failures about data-center/infrastructure risks — legal risk and headline pressure add to near-term volatility. Hagens Berman class action notice
• Negative Sentiment: Market reaction and management defense: Shares fell sharply on the combination of EPS miss, heavy capex guidance and debt; CEO publicly defended the accelerated buildout but investor skepticism over capital intensity and execution remains high. CNBC: CEO defends spending

Analysts Set New Price Targets

CRWV has been the subject of several research reports. Deutsche Bank Aktiengesellschaft upgraded shares of CoreWeave from a “hold” rating to a “buy” rating and increased their target price for the company from $100.00 to $140.00 in a research note on Tuesday, January 27th. Stifel Nicolaus set a $120.00 price objective on CoreWeave in a research report on Tuesday, November 11th. Wells Fargo & Company lowered their price objective on CoreWeave from $150.00 to $125.00 and set an “overweight” rating on the stock in a research report on Thursday, January 8th. UBS Group restated a “neutral” rating on shares of CoreWeave in a research note on Friday, January 16th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of CoreWeave in a research note on Monday, December 29th. Seventeen research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, CoreWeave presently has a consensus rating of “Moderate Buy” and a consensus target price of $124.34.

Insiders Place Their Bets

In other CoreWeave news, CEO Michael N. Intrator sold 111,427 shares of CoreWeave stock in a transaction on Wednesday, December 31st. The stock was sold at an average price of $72.39, for a total transaction of $8,066,200.53. Following the completion of the transaction, the chief executive officer directly owned 5,922,620 shares of the company’s stock, valued at approximately $428,738,461.80. This trade represents a 1.85% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Brannin Mcbee sold 102,835 shares of the company’s stock in a transaction dated Tuesday, December 2nd. The stock was sold at an average price of $78.61, for a total transaction of $8,083,859.35. Following the completion of the sale, the insider directly owned 185,181 shares in the company, valued at approximately $14,557,078.41. The trade was a 35.70% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 4,650,896 shares of company stock worth $397,218,577 over the last three months.

Institutional Trading of CoreWeave

Several hedge funds have recently modified their holdings of CRWV. Cornerstone Planning Group LLC boosted its holdings in shares of CoreWeave by 272.8% in the 4th quarter. Cornerstone Planning Group LLC now owns 343 shares of the company’s stock worth $25,000 after acquiring an additional 251 shares in the last quarter. Family Legacy Financial Solutions LLC boosted its stake in CoreWeave by 166.7% in the third quarter. Family Legacy Financial Solutions LLC now owns 200 shares of the company’s stock worth $27,000 after purchasing an additional 125 shares in the last quarter. HighMark Wealth Management LLC bought a new stake in shares of CoreWeave during the third quarter worth $27,000. OLD Second National Bank of Aurora acquired a new stake in shares of CoreWeave in the third quarter valued at $27,000. Finally, KERR FINANCIAL PLANNING Corp bought a new position in shares of CoreWeave in the third quarter valued at about $27,000.

CoreWeave Trading Down 18.5%

The company’s 50-day moving average is $88.88 and its 200-day moving average is $99.61. The company has a debt-to-equity ratio of 2.66, a quick ratio of 0.49 and a current ratio of 0.49. The firm has a market cap of $30.74 billion and a price-to-earnings ratio of -24.86.

About CoreWeave

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.