CRWV Stock Saw Its Worst Selloff In Over 4 Months On META's Cloud Computing Plans — Wall Street Now Thinks It's A Buying Opportunity

• Rosenblatt said it does not believe Meta has the right to resell any of the CoreWeave capacity it has leased through 2032 to third parties.
• The firm reiterated its ‘Buy’ rating on CoreWeave with a $250 price target, implying an upside potential of 192% from Wednesday’s closing price.
• Roth Capital analyst Rohit Kulkarni echoed similar sentiments, while adding that the market reaction to Meta’s cloud business plans was overdone.

Shares of CoreWeave Inc. (CRWV) declined 14% on Wednesday, marking their worst single-day fall in more than four months amid reports that Meta Platforms Inc. (META) is developing plans for a cloud computing business.

However, analysts see little risk to CoreWeave's core cloud computing business from Meta's plans and believe that the sell-off in CoreWeave shares is a buying opportunity for investors.

CoreWeave shares were up nearly 2% in Thursday’s pre-market session, while Meta shares were down about 1%.

Why Wall Street Remains Confident About CRWV

According to TheFly, Rosenblatt said its channel checks show no change in hyperscalers' demand for GPU computing capacity, noting that GPU shortages remain the norm across the industry.

Rosenblatt also said it does not believe Meta has the right to resell any of the CoreWeave capacity it has leased through 2032 to third parties, suggesting the reported plans should have little direct impact on CoreWeave's business.

The firm reiterated its ‘Buy’ rating on CoreWeave with a $250 price target, implying an upside potential of 192% from Wednesday’s closing price.

Roth Capital analyst Rohit Kulkarni echoed similar sentiments, while adding that the market reaction to Meta’s cloud business plans was overdone. Kulkarni said that the plans remain unconfirmed and would likely be constrained by available GPU capacity.

He said investors were too quick to view the move as a competitive threat to neocloud providers such as CoreWeave and Nebius.

Kulkarni added that Meta's cloud ambitions could diversify its business by adding cloud and subscription revenue to a company that still derives about 98% of its revenue from advertising.

What Is META Planning?

According to a Bloomberg report citing people familiar with the matter, Meta is developing plans to launch a cloud infrastructure business to sell excess AI compute capacity to external customers.

The company is also reportedly evaluating another plan to provide access to various AI models hosted on its existing infrastructure.

Meta’s plans would put the company in competition with Amazon.com Inc.’s (AMZN) AWS, Microsoft Corp.’s (MSFT) Azure, and neocloud providers like CoreWeave.

Meta is also an existing CoreWeave customer, having signed an expanded $21 billion deal in April this year. The $21 billion deal builds on a similar $14.2 billion agreement signed by CoreWeave and Meta in September 2025. 

What Retail Investors Think Of CRWV Stock

Retail sentiment on Stocktwits around CoreWeave trended in the ‘bullish’ territory, with message volumes at ‘extremely high’ levels at the time of writing.

CRWV stock is up 20% year-to-date, while META stock is down 7%. The Invesco QQQ Trust (QQQ) is up 33% over the past 12 months, while the iShares U.S. Technology ETF (IYW) is up 45%.

Also See: Vlad Tenev Says Robinhood Wants Retail Investors To Trade Like The Pros With AI — Mizuho Calls HOOD The ‘AWS’ Of Online Brokers

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