CRWV Stock Slips Premarket After Michael Burry Revives Dot-Com Parallels — Wall Street Still Bets On Massive Upside

Wall Street remains optimistic on CoreWeave, with analyst targets implying potential upside ranging from about 12% to nearly 98% from current levels.

• Burry compared CoreWeave’s model to Level 3 Communications from the dot-com era, arguing its infrastructure-heavy economics may be even more challenging over time.
• The caution came after Q4 results missed expectations and the company outlined aggressive 2026 capex plans.
• CEO Mike Intrator defended the investment cycle, saying demand from enterprise and sovereign AI clients remains strong.

Shares of CoreWeave, Inc. (CRWV) fell 4% in premarket trading on Monday after “The Big Short” investor Michael Burry warned the company resembles past tech bubble plays, even as analysts remained bullish on long-term growth.

CRWV stock fell over 18% on Friday to $79.56, marking its worst session in over six months, and fell another 0.2% in extended trade.

Burry Draws Dot-Com Parallel

In a Substack note on Friday, Burry said CoreWeave “exists as an off-balance sheet SPV [special purpose vehicle] designed to lose money,” adding that enthusiasm around AI spending had pushed the company into public markets.

He compared the business model to Level 3 Communications during the last technology bubble, saying that CoreWeave may be in an even more challenging position because its infrastructure depreciates faster. Burry added that the company’s infrastructure economics could prove more demanding over time, suggesting the comparison was “so obvious it is almost not interesting enough to discuss.”

The remarks came shortly after CoreWeave reported fourth-quarter (Q4) results that missed expectations and outlined plans for higher investment.

Spending Plans Raise Questions

The company posted a Q4 loss of $0.56 per share on revenue of $1.57 billion, compared with expectations for a $0.49 loss on $1.53 billion in revenue, according to Fiscal.ai data.

At the same time, CoreWeave projected capital expenditures of $30 billion to $35 billion for 2026, more than double the $14.9 billion spent in 2025. Its first-quarter revenue outlook of $1.9 billion to $2 billion also fell short of Wall Street’s $2.24 billion estimate.

CEO Mike Intrator defended the company’s spending plans, telling CNBC that demand for infrastructure has been “relentless” as enterprise and sovereign customers scale AI deployments.

“Our clients are increasing the demand signals that they are giving us,” Intrator said, adding that the company had made an “intentional decision” to expand infrastructure even if it pressures margins. He also acknowledged investor concerns around the scale of the company’s spending, but said the investment reflects an “enormous” backlog.

Wall Street Sees Up To 98% Upside

Following the earnings miss and capital intensity outlook, JPMorgan lowered its target to $90 from $110, implying an upside of about 18.5% from the stock’s last close, while maintaining a Neutral rating. The brokerage cited a more “pronounced” investment cycle.

Mizuho cut its target to $95 from $100, suggesting an upside of roughly 25.1% from current levels. It pointed to rising spending tied to the order backlog.

Truist raised its target slightly to $85, implying about 12% upside, while noting continued questions around sustainable profitability. Stifel’s $110 target suggests potential upside of roughly 45%, while Deutsche Bank and DA Davidson both maintained $125 targets, representing gains of about 65%. Meanwhile, Evercore ISI’s revised $150 target implies nearly 98% upside from the last close.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment for CRWV was ‘extremely bullish’ amid ‘extremely high’ message volume.

One user said, “Great buy point here . $215 by the summer the backlog here is massive.”

Another user said, “Looks like AH will not be much of an indicator for CRWV with Trump's war in Iran. Same silly quick play for gold and silver that always taps out by time the bell opens. Will have to wait to see how tomorrow shapes up.”

CRWV stock has risen 11% year-to-date.

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