CoreWeave Retail Buzz Grows Amid Stock’s Red-Hot Post-IPO Rally, But Analysts Urge Caution

CoreWeave, Inc. (CRWV) stock was among the top five trending equity tickers on Stocktwits early Tuesday amid the ongoing stock strength.

The Livingston, New Jersey-based data center operator has seen its stock surge by nearly 32% over the past two sessions, with artificial intelligence (AI) stalwart Nvidia (NVDA) disclosing a 24.18-million stake in the company serving as the key upside catalyst. 

The value of the holding was listed at $896.69 million at the end of the first quarter.

Based on Monday's closing price, CoreWeave's stock surge has enriched Nvidia’s holdings to $2.09 billion. 

On Monday, CoreWeave said it plans to raise $1.50 billion through a private offering of senior notes due 2030. The company, which operates in a capital-intensive industry, expects to use the net proceeds for general corporate purposes such as debt repayment, fee payment, and costs associated with the debt offering.

CoreWeave’s shares came under selling pressure last week despite reporting fairly strong quarterly results. The skepticism could be traced back to the huge capital spending plans hinted at by the company. 

For the fiscal year 2025, the company foresees capex of $20 billion to $23 billion, with $3 billion to $3.5 billion to be expended in the second quarter.

The results, however, satiated JPMorgan analysts, who lifted the price target for CoreWeave stock to $66 from $43, The Fly reported. The analysts also maintained an ‘Overweight’ rating for the stock.

The research firm lauded the company's beat-and-raise quarter and expressed optimism over adding Alphabet (GOOGL) (GOOG) as a new hyperscale customer and booking a $4 billion order with OpenAI.

On Stocktwits, retail sentiment toward CoreWeave stock was ‘extremely bullish’ (94/100) by late Monday, and message volume stayed ‘extremely high.’

The 24-hour message volume change for the stock is 1,244% by late Monday, reflecting brisk retail chatter.

A bullish user predicted a $100 stock price for CoreWeave by the end of the week.

Another said his random buy of CoreWeave stock at the company’s initial public offering due to the Nvidia partnership has “paid off big time.”

CoreWeave, which debuted as a public company on March 28, has added over 116% since its listing. Sell-side analysts are wary of the run-up, with the Koyfin-compiled average analysts’ price target of $85 implying nearly 25% downside from current levels.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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