TLDR
- CoreWeave (CRWV) traded down 0.5% at $59.25 Wednesday after a 7.9% gain Tuesday.
- The stock is still down more than 30% over the past month.
- Oppenheimer says CoreWeave could generate $9 billion in annual free cash flow if it paused growth spending.
- Oppenheimer has a $150 price target, while the FactSet average target is $132.49.
- CoreWeave added AI capacity in Denmark and extended its network into Asia-Pacific and the Middle East.
CoreWeave (CRWV) stock was down 0.5% at $59.25 in early trading Wednesday. That follows a 7.9% jump on Tuesday, when the stock closed higher from $55.19.
CoreWeave, Inc. Class A Common Stock, CRWV
The stock has still fallen more than 30% over the past month. Bargain hunters have stepped in, though, as worries about the company’s debt have eased a little.
Tuesday’s move came on heavy volume. About 52.8 million shares changed hands, 69% above the daily average of 31.2 million. The stock hit a high of $59.95.
Other neocloud names also rose Tuesday, including Nebius (NBIS) and IREN (IREN). The group got a lift after Anthropic filed for its IPO. Its adjusted profit pointed to the chance of profits across the AI sector.
Oppenheimer Defends the Debt Load
Oppenheimer analyst Param Singh says CoreWeave could produce $9 billion in annual free cash flow to the firm if it paused growth and capital spending. He says that would be enough to pay off its debt.
Singh also looked at a worst case. In a liquidation, he sees full recovery for unsecured debt, since longer server use understates the assets on the balance sheet.
Pausing growth is not something CoreWeave wants to do. Its model relies on a fast cycle of borrowing, spending and sales growth. Still, Singh’s view gives investors a safety net to point to.
CoreWeave has also said its revenue backlog should cover all of its debt payments. That holds even if customers do not renew contracts.
Singh has a $150 price target. He expects 160% revenue growth this year, with more to come in 2027.
Wall Street Stays Mostly Positive
The FactSet average target is $132.49. MarketBeat puts its average at $130.24, with a “Moderate Buy” rating. Of the analysts it tracks, 27 rate the stock a Buy, eight a Hold and three a Sell.
Raymond James reiterated an “outperform” rating with a $75 target. Northland Securities has a $200 target.
Not everyone is calm. Elon Musk warned that many neocloud firms could fail or merge as financing tightens. CoreWeave’s debt-to-equity ratio sits at 5.53.
The company also grew its footprint this week. It announced new AI capacity in Denmark and its first global AI network backbone, reaching Asia-Pacific and the Middle East.
Insiders have been sellers. They sold 4.79 million shares worth about $433.5 million over the last quarter. CEO Michael Intrator sold 78,552 shares on September 30 at $87.69 to cover taxes.
CoreWeave last reported results on August 11. It posted a loss of $1.14 per share, beating estimates of a $1.52 loss. Revenue was $2.58 billion, up 112.5% from a year earlier.
The stock now sits well below its 50-day moving average of $82.27. Its market cap is $27.34 billion. Wednesday’s price of $59.25 is down 0.5% on the day.
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