CoreWeave, Inc. Class A Common Stock
CRWV
$72.91
-5.46%
CoreWeave is a modern cloud infrastructure company that provides Nvidia GPUs and other essential AI hardware to handle demanding AI training and inference workloads. As a specialized neocloud provider, it differentiates itself from hyperscalers by offering optimized efficiency and deep expertise in AI infrastructure. The current investor narrative centers on growth acceleration driven by surging AI demand, but recent concerns about Meta's potential entry into AI cloud services have introduced competitive uncertainty and weighed on the stock. Additionally, CoreWeave's heavy debt burden and negative free cash flow have sparked debate about its financial sustainability.…
CRWV
CoreWeave, Inc. Class A Common Stock
$72.91
Related headlines
Investment Opinion: Should I buy CRWV Today?
Rating: Hold. CoreWeave is a high-growth but financially fragile company that offers significant upside potential if it can navigate competitive threats and achieve profitability, but the risks are substantial. The analyst consensus is Buy with an average target of $141.15 (83% upside), but the recent downgrade and negative news flow warrant caution.
Supporting Evidence: Revenue growth of 111.7% YoY is exceptional, but the company remains unprofitable with a net margin of -35.6%. The PS ratio of 6.07x is below the industry average of 8-10x, but the negative free cash flow of -$4.7B and debt-to-equity of 8.94x are red flags. The analyst average target implies 83% upside, but the wide range ($36 to $303) reflects extreme uncertainty. The stock's 45.1% decline over the past year suggests the market is already pricing in significant risks.
Risks & Conditions: The Hold rating would upgrade to Buy if the company demonstrates a credible path to positive free cash flow (e.g., FCF margin improvement) or if the PS ratio compresses below 4x, offering a deeper value entry. It would downgrade to Sell if revenue growth decelerates below 50% YoY or if Meta's cloud service causes a material loss of customers. Valuation verdict: CoreWeave is fairly valued relative to its high growth but high risk profile; the PS discount to peers is warranted given the financial and competitive challenges.
Sign up to view all
CRWV 12-Month Price Forecast
The AI assessment is bearish with medium confidence. While CoreWeave's revenue growth is exceptional, the company's financial health is precarious with high debt and negative cash flow. The competitive threat from Meta is a material risk that could derail the growth story. The current valuation partially reflects these risks, but the downside scenario (30% probability) could see the stock fall to $36. The base case of $80-140 is most likely, but the risk/reward is skewed to the downside given the financial leverage. An upgrade to neutral would require evidence of margin improvement or debt reduction; a downgrade to more bearish would follow if Meta's cloud service launches successfully.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on CoreWeave, Inc. Class A Common Stock's 12-month outlook, with a consensus price target around $140.85 and implied upside of +93.2% versus the current price.
Average Target
$140.85
0 analysts
Implied Upside
+93.2%
vs. current price
Analyst Count
—
covering this stock
Price Range
$36 - $303
Analyst target range
CoreWeave is covered by 33 analysts, with a consensus recommendation of 'buy' (mean rating of 1.89 on a 1-5 scale where 1 is strong buy). The average target price is $141.15, implying 83.0% upside from the current price of $77.12. The distribution shows 1 analyst rates it as strong buy, 22 as buy, 9 as hold, and 1 as sell, indicating a predominantly bullish sentiment despite recent price declines. Recent ratings actions include a downgrade from DA Davidson (Buy to Neutral) on May 18, 2026, while Mizuho, Macquarie, Rosenblatt, Cantor Fitzgerald, and Citigroup have maintained their positive stances.
The target price range spans from a low of $36.00 to a high of $303.00, reflecting significant uncertainty. The high target of $303.00 implies 293% upside and likely assumes successful execution on growth, margin expansion, and debt reduction, along with a favorable AI demand environment. The low target of $36.00 implies 53% downside and prices in competitive pressure from hyperscalers, continued losses, and potential liquidity issues. The wide spread between low and high targets (267% difference) indicates high uncertainty about the company's future. The fact that 33 analysts cover the stock suggests strong institutional interest, but the recent downgrade and negative news flow could lead to further target revisions.
Bulls vs Bears: CRWV Investment Factors
CoreWeave presents a high-risk, high-reward profile. The bull case rests on explosive revenue growth (111.7% YoY), a deeply discounted PS ratio (6.07x vs. industry 8-10x), and strong analyst support (83% upside to average target). However, the bear case is equally compelling: a debt-to-equity ratio of 8.94x, negative free cash flow of -$4.7B, declining gross margins, and the existential threat of Meta's cloud entry. The single most important tension is whether CoreWeave can achieve profitability and maintain its growth trajectory amid intensifying competition from hyperscalers. Currently, the bearish evidence is stronger given the financial fragility and competitive headwinds, but the stock's valuation already prices in significant pessimism, creating a potential asymmetric opportunity if execution improves.
Bullish
- Explosive 111.7% Revenue Growth: CoreWeave's Q1 2026 revenue of $2.078 billion grew 111.7% year-over-year, accelerating from $981.6 million in Q1 2025. This growth rate far exceeds the software-infrastructure industry average of 15-20%, positioning the company as a leader in AI infrastructure.
- Analyst Consensus Buy with 83% Upside: 33 analysts cover CRWV with a mean rating of 1.89 (Buy) and an average target price of $141.15, implying 83.0% upside from the current $77.12. The high target of $303.00 suggests potential for 293% gains if execution succeeds.
- PS Ratio at Historical Low: The trailing PS ratio of 6.07x is near the low end of its historical range (15.3x to 49.9x) and represents a 24-39% discount to the industry average of 8-10x. This implies pessimistic expectations that could reverse if profitability improves.
- Strong AI Demand Tailwind: CoreWeave's specialized Nvidia GPU cloud services are in high demand for AI training and inference. Recent news highlights that AI compute demand remains robust, and the company's inclusion in the Nasdaq-100 signals institutional recognition.
Bearish
- Massive Debt and Negative Free Cash Flow: Debt-to-equity is 8.94x with total debt of $8.9 billion, while free cash flow was -$4.711 billion in Q1 2026 due to $7.695 billion in capex. The negative FCF yield of -8.7% indicates heavy reliance on external financing.
- Meta Cloud Competition Threat: Meta's announcement of AI cloud services caused CRWV to plunge 11-14% in a single day. If Meta enters the market, it could compress CoreWeave's pricing power and market share, directly threatening its growth narrative.
- Declining Gross Margins and Persistent Losses: Gross margin fell from 73.3% in Q1 2025 to 65.5% in Q1 2026, while net loss widened to -$740 million. The net margin of -35.6% and negative operating margin of -6.9% show no clear path to profitability.
- Stock in Sustained Downtrend: CRWV is down 45.1% over the past year and trades at 50.3% of its 52-week range. The 1-month decline of -27.7% and 3-month decline of -35.5% indicate accelerating selling pressure, with relative strength vs. S&P 500 at -66.1% over 1 year.
CRWV Technical Analysis
CoreWeave is in a sustained downtrend, with the stock down 45.1% over the past year and currently trading at 50.3% of its 52-week range (current price $77.12 vs. 52-week low of $63.80 and high of $153.20). The price sits closer to the low end of the range, suggesting bearish sentiment and potential value opportunity, though the trend remains negative. The 1-year price change of -45.1% and 6-month change of -23.8% confirm a persistent decline, with the stock failing to hold above key moving averages.
Short-term momentum is decisively negative, with the 1-month price change of -27.7% and 3-month change of -35.5% accelerating the downtrend. This divergence from the longer-term 1-year decline indicates intensifying selling pressure, likely driven by the Meta cloud announcement and debt concerns. The relative strength versus the S&P 500 is extremely weak, with 1-month relative strength of -28.3% and 3-month relative strength of -41.8%, confirming the stock is underperforming the market by a wide margin.
The 52-week low of $63.80 provides key support, while the 52-week high of $153.20 represents major resistance. A breakdown below $63.80 would signal further downside risk, while a move above $153.20 would indicate a trend reversal. Beta data is not available, but the stock's high volatility is evident from its 64.8% max drawdown and sharp daily swings. The short ratio of 2.61 suggests moderate bearish sentiment but not extreme positioning.
Beta
—
—
Max Drawdown
-64.8%
Largest decline past year
52-Week Range
$64-$153
Price range past year
Annual Return
-49.0%
Cumulative gain past year
| Period | CRWV Return | S&P 500 |
|---|---|---|
| 1m | -37.7% | +0.1% |
| 3m | -37.6% | +5.7% |
| 6m | -28.0% | +8.5% |
| 1y | -49.0% | +20.3% |
| ytd | -8.1% | +10.1% |
Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
CRWV Fundamental Analysis
CoreWeave's revenue is growing rapidly, with Q1 2026 revenue of $2.078 billion representing 111.7% year-over-year growth, accelerating from $981.6 million in Q1 2025. The sequential growth from Q4 2025's $1.572 billion was 32.2%, indicating strong momentum. However, the company remains unprofitable, with net income of -$740 million in Q1 2026, though the net loss narrowed from -$314.6 million in Q1 2025. The growth trajectory is driven by AI infrastructure demand, but investors are watching for signs of deceleration as competition intensifies.
Gross margin has been declining, from 73.3% in Q1 2025 to 65.5% in Q1 2026, reflecting higher cost of revenue as the company scales. Operating margin improved from -2.8% to -6.9% over the same period, but remains negative. Net margin was -35.6% in Q1 2026, worse than -32.1% a year ago, due to rising interest expenses of $536 million. The company is not profitable on a GAAP basis, and the trajectory toward profitability is uncertain given heavy capital expenditure requirements.
CoreWeave's balance sheet is highly leveraged, with a debt-to-equity ratio of 8.94 and total debt of $8.9 billion as of Q4 2025. Free cash flow was -$4.711 billion in Q1 2026, driven by massive capex of $7.695 billion, indicating the company relies heavily on external financing. The current ratio of 0.46 suggests liquidity risk, though cash of $3.021 billion provides some buffer. ROE is -35.0%, reflecting negative shareholder equity. The negative free cash flow yield of -8.7% (based on market cap) underscores the need for continued capital markets access.
Quarterly Revenue
$2.1B
2026-03
Revenue YoY Growth
+111.7%
YoY Comparison
Gross Margin
65.5%
Latest Quarter
Free Cash Flow
$-10.6B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Open an Account, get $2 TSLA now!
Valuation Analysis: Is CRWV Overvalued?
Since CoreWeave has negative net income, we use the price-to-sales (PS) ratio as the primary valuation metric. The trailing PS ratio is 6.07x based on current market cap of $31.15 billion and TTM revenue of approximately $5.13 billion. A forward PS ratio is not directly available, but given revenue growth of 111.7%, the forward PS would be lower if growth continues. The negative PE ratio of -26.04x trailing and -57.49x forward confirms the company is unprofitable, making PS the appropriate metric.
Compared to the software-infrastructure industry average PS ratio of approximately 8-10x (based on industry data), CoreWeave's 6.07x represents a discount of about 24-39%. This discount may be justified by the company's negative profitability, high debt, and competitive threats from hyperscalers. However, its superior revenue growth rate of 111.7% versus industry averages of 15-20% could warrant a premium if the company can demonstrate a path to profitability.
Historically, CoreWeave's PS ratio has ranged from 15.3x in Q1 2025 to 49.9x in Q3 2025, with the current 6.07x near the low end of its historical range. This suggests the market has significantly de-rated the stock due to profitability concerns and competitive risks. The low PS multiple implies pessimistic expectations, but could also present a value opportunity if the company's growth trajectory and margin improvement materialize.
PE
-26.0x
Latest Quarter
vs. Historical
N/A
5-Year PE Range 17x~59x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
23.1x
Enterprise Value Multiple
Investment Risk Disclosure
Financial & Operational Risks: CoreWeave's balance sheet is highly leveraged with a debt-to-equity ratio of 8.94x and total debt of $8.9 billion. The company burned $4.711 billion in free cash flow in Q1 2026 alone, driven by massive capex of $7.695 billion, indicating a reliance on external financing. The current ratio of 0.46 suggests liquidity risk, though $3.021 billion in cash provides some buffer. Net losses widened to -$740 million in Q1 2026, with net margin deteriorating to -35.6%, and interest expenses of $536 million are a significant drag. The negative ROE of -35.0% reflects negative shareholder equity, making the company vulnerable to any disruption in capital markets access.
Market & Competitive Risks: The stock trades at a PS ratio of 6.07x, which is a discount to the industry average of 8-10x, but this discount may be justified by the company's unprofitability and high debt. The primary competitive threat is Meta's potential entry into AI cloud services, which caused a 11-14% single-day drop. If hyperscalers like Meta, Amazon, or Google leverage their scale, CoreWeave's pricing power could erode. The stock's beta is not available, but its 64.8% max drawdown and high volatility indicate significant macro sensitivity. The recent downgrade from DA Davidson (Buy to Neutral) on May 18, 2026, adds to negative sentiment.
Worst-Case Scenario: In a severe downturn, CoreWeave could face a liquidity crisis if capital markets close and debt refinancing becomes impossible. The bear-case analyst target of $36.00 implies a 53.3% downside from the current price of $77.12. If Meta's cloud service launches successfully and captures market share, revenue growth could decelerate sharply, leading to further multiple compression. The 52-week low of $63.80 represents a 17.3% downside from current levels, but a break below that could trigger a move toward the $36.00 target, representing a potential loss of 53% from current prices.
FAQ
The key risks are: 1) Financial risk: debt-to-equity of 8.94x and negative free cash flow of -$4.7B could lead to a liquidity crisis if capital markets tighten. 2) Competitive risk: Meta's entry into AI cloud services could erode CoreWeave's pricing power and market share. 3) Profitability risk: net margin of -35.6% and declining gross margins (65.5% vs. 73.3% a year ago) show no clear path to profitability. 4) Market risk: the stock is highly volatile with a 64.8% max drawdown and has underperformed the S&P 500 by 66.1% over the past year. The most severe risk is a liquidity event that could push the stock to the analyst low target of $36.
The 12-month outlook is mixed. The base case (50% probability) sees the stock trading between $80 and $140, with revenue growth moderating to 80-100% YoY and continued cash burn. The bull case (20% probability) targets $140-$200, driven by accelerating AI demand and margin improvement. The bear case (30% probability) sees the stock falling to $36-$63 if Meta's cloud competition intensifies or a liquidity crisis emerges. The analyst average target of $141.15 implies 83% upside, but the wide range ($36 to $303) reflects extreme uncertainty. The most likely scenario is the base case, with the stock remaining range-bound as investors weigh growth against financial risks.
CRWV's trailing PS ratio of 6.07x is below the software-infrastructure industry average of 8-10x, suggesting it is undervalued relative to peers. However, this discount is justified by the company's negative profitability, high debt (debt-to-equity of 8.94x), and competitive risks. Historically, the PS ratio has ranged from 15.3x to 49.9x, so the current level is near the low end, indicating the market has priced in significant pessimism. If the company can demonstrate a path to profitability, the stock could be undervalued. But given the risks, the current valuation appears fair.
CRWV is a high-risk, high-reward stock. The analyst consensus is Buy with an average target of $141.15, implying 83% upside from $77.12. However, the company has a debt-to-equity ratio of 8.94x, negative free cash flow of -$4.7B, and faces a competitive threat from Meta's cloud services. For aggressive investors with a long-term horizon who believe in the AI infrastructure theme, CRWV could be a good buy at current depressed levels. However, conservative investors should avoid it due to the financial fragility. The stock is best suited as a small, speculative position within a diversified portfolio.
CRWV is more suitable for long-term investment given its speculative nature and high volatility. The stock has a beta that is likely above 2 (implied by its 64.8% max drawdown and sharp swings), making it risky for short-term trading. The company is in a high-growth phase with 111.7% revenue growth, but it is not yet profitable and has significant debt. Long-term investors (3-5 years) could benefit if the AI infrastructure theme plays out and the company achieves profitability. Short-term traders face high volatility and negative momentum, with the stock down 45.1% over the past year. A minimum holding period of 3 years is recommended to allow the company to execute on its growth strategy and potentially reach profitability.