Why Did CoreWeave Stock Fall A Whopping 19% Today? Find Out More

The company received a slew of price target updates from Wall Street following its earnings release and notably, not everyone appears to be on the same page.

CoreWeave Inc. (CRWV) received mixed reactions from Wall Street analysts after the company released its second-quarter (Q2) earnings, with some voicing concerns over narrow margins and the upcoming IPO (initial public offering) lock-in expiry on August 14.

Stifel raised its price target to $120 from $115 but kept its ‘Hold’ rating, as per TheFly.  The firm cited stronger-than-expected guidance for the third quarter (Q3) and fiscal 2025 but flagged margin concerns. It also warned of pressure from dilution tied to the Core Scientific deal and the impending IPO lock-up expiration.

In July, CoreWeave had agreed to acquire the data center infrastructure company, Core Scientific Inc. (CORZ), in an all-stock deal, valued at about $9 billion.

CoreWeave stock traded 19% lower on Wednesday mid-morning. On Stocktwits, retail sentiment toward the stock improved to ‘extremely bullish’ from ‘bullish’ territory the previous day. Message volume jumped to ‘extremely high’ from ‘normal’ levels in 24 hours. 

The stock experienced a 462% surge in user message count over 24 hours, as of Wednesday morning. A bullish Stocktwits user said the lock-up expiration event is the only fear factor in the near term.

Another user said they find the earnings report more bullish.

Wells Fargo lifted its target to $105 while maintaining an ‘Equal Weight’ stance. The brokerage highlighted healthy demand and a rising backlog, but noted that CoreWeave continues to post negative earnings per share amid aggressive capital expenditures.

BofA trimmed its target from $185 to $168, retaining a ‘Neutral’ rating. The firm praised CoreWeave’s strong positioning in the AI infrastructure space but pointed to unanswered questions around its proposed acquisition of Core Scientific, ongoing regulatory uncertainty, and volatility risks tied to the looming lock-up expiry.

The company reported a loss per share of $0.27 in Q2, narrower than the year-ago loss of $1.62. However, the loss per share was wider than the consensus estimate of a loss of $0.20, as per Fiscal AI data. Meanwhile, revenue climbed 207% year-on-year to $1.21 billion, beating the consensus estimate of $1.08 billion. 

CoreWeave stock has gained over 205% so far since its listing in March.

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