CoreWeave (NASDAQ:CRWV) Shares Gap Down on Disappointing Earnings

CoreWeave Inc. (NASDAQ:CRWV) gapped down prior to trading on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $97.63, but opened at $84.22. CoreWeave shares last traded at $80.72, with a volume of 25,671,041 shares traded.

The company reported ($0.89) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.61) by ($0.28). The business had revenue of $1.57 billion during the quarter. CoreWeave had a negative net margin of 22.75% and a negative return on equity of 35.39%. The firm’s revenue was up 110.4% compared to the same quarter last year.

Trending Headlines about CoreWeave

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

Analyst Ratings Changes

Several research firms recently weighed in on CRWV. Cantor Fitzgerald reissued an “overweight” rating and set a $131.00 price objective on shares of CoreWeave in a report on Friday. Morgan Stanley lifted their price target on shares of CoreWeave from $91.00 to $99.00 and gave the company an “equal weight” rating in a research note on Tuesday, November 11th. Wells Fargo & Company lowered their target price on CoreWeave from $150.00 to $125.00 and set an “overweight” rating on the stock in a research report on Thursday, January 8th. Stifel Nicolaus set a $120.00 price target on shares of CoreWeave in a research report on Tuesday, November 11th. Finally, Weiss Ratings restated 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 issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $124.34.

Insiders Place Their Bets

In other news, CEO Michael N. Intrator sold 32,456 shares of the stock in a transaction on Wednesday, February 25th. The stock was sold at an average price of $99.95, for a total value of $3,243,977.20. Following the completion of the sale, the chief executive officer owned 5,731,412 shares in the company, valued at $572,854,629.40. This represents a 0.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Jeff Baker sold 2,374 shares of the stock in a transaction that occurred on Friday, February 20th. The stock was sold at an average price of $90.83, for a total transaction of $215,630.42. Following the completion of the sale, the insider directly owned 41,275 shares of the company’s stock, valued at $3,749,008.25. This trade represents a 5.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 4,650,896 shares of company stock worth $397,218,577 in the last quarter.

Institutional Investors Weigh In On CoreWeave

Several institutional investors and hedge funds have recently bought and sold shares of the business. Alpine Global Management LLC raised its stake in shares of CoreWeave by 34,895.7% in the fourth quarter. Alpine Global Management LLC now owns 8,049 shares of the company’s stock valued at $576,000 after acquiring an additional 8,026 shares during the last quarter. MidFirst Bank bought a new stake in CoreWeave in the fourth quarter valued at about $117,000. Floyd Financial Group LLC raised its position in shares of CoreWeave by 111.0% in the 4th quarter. Floyd Financial Group LLC now owns 16,748 shares of the company’s stock valued at $1,199,000 after acquiring an additional 8,809 shares during the period. Virtu Financial LLC acquired a new stake in CoreWeave in the fourth quarter worth $11,907,000. Finally, Mcguire Capital Advisors Inc. acquired a new stake in CoreWeave during the 4th quarter worth $105,000.

CoreWeave Price Performance

The firm has a market cap of $30.74 billion and a P/E ratio of -24.86. The company has a current ratio of 0.49, a quick ratio of 0.49 and a debt-to-equity ratio of 2.66. The company has a fifty day moving average price of $88.88 and a two-hundred day moving average price of $99.61.

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.