CoreWeave Stock Tumbles 12% — Analyst Flags Execution Risks Ahead Of Earnings

According to a Barron’s report, Morgan Stanley assigned the cloud infrastructure provider an “Equal Weight” rating and set a $99 price target, suggesting only modest upside from recent levels.

• Morgan Stanley analyst Keith Weiss cited operational challenges in a constrained supply environment.
• The firm said it would look for several improvements, including expanding active power capacity beyond 850 megawatts, and resolving past data center construction delays before turning constructive.
• CoreWeave is scheduled to report fourth-quarter fiscal 2025 results on February 26.

CoreWeave Inc. (CRWV) shares slid on Friday after Morgan Stanley’s initiation cast a cautious tone just days before the company’s quarterly earnings release. 

According to a Barron’s report, the firm assigned the cloud infrastructure provider an “Equal Weight” rating and set a $99 price target, suggesting only modest upside from recent levels.

Execution In Focus

Morgan Stanley analyst Keith Weiss cited operational challenges in a constrained supply environment as a primary reason for the tempered outlook. He pointed to difficulties in fulfilling customer demand and noted that some dissatisfied clients have pursued legal action.

The firm acknowledged that CoreWeave has landed and broadened significant agreements with some of the most sophisticated generative AI customers in the market. However, the firm stressed that investor confidence hinges on tangible execution milestones.

CoreWeave stock tumbled over 12% by Friday afternoon. On Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory amid ‘low’ message volume levels. 

Morgan Stanley indicated it would look for several improvements before turning more constructive. Among them are expanding active power capacity beyond 850 megawatts, resolving past data center construction delays, converting development projects into realized capital spending, and diversifying its customer base.

Additional Pressure Points

Compounding the negative sentiment, a Business Insider report said that Blue Owl Capital Inc. (OWL) was unable to secure financing for a proposed data center transaction involving CoreWeave, creating fresh uncertainty around expansion efforts.

CoreWeave is scheduled to report fourth-quarter (Q4) fiscal 2025 results on February 26. Analysts expect revenue of approximately $1.53 billion, and an adjusted loss per share of $0.49, according to Fiscal AI data. 

CRWV stock has gained over 114% in the last 12 months. 

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