• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Investing

Analysts are largely bullish on CoreWeave despite post-IPO struggles: read why

by April 22, 2025
by April 22, 2025
CRWV stock

CoreWeave, the Nvidia-backed cloud computing company specialising in artificial intelligence infrastructure, received broadly positive analyst coverage this week despite having struggled to gain investor traction after its initial public offering (IPO).

On Tuesday, the mandatory post-IPO quiet period for brokerages expired, allowing Wall Street analysts to begin issuing formal coverage of the stock.

Five major firms, including Goldman Sachs, Morgan Stanley, and JP Morgan, started coverage, largely leaning bullish on the company’s prospects.

The company, based in Livingston, New Jersey, offers cloud services powered by cutting-edge Nvidia GPUs and operates 32 data centers that house more than 250,000 chips.

These capabilities have made CoreWeave a key player in the booming generative AI space, a point widely highlighted by analysts.

Yet, investor interest remained muted.

CRWV stock trajectory and analyst optimism

Shares of CoreWeave have fallen for five consecutive sessions, closing at $35.25 on Monday, down 12.4% for the day and below its IPO price of $40.

The stock was seen rising by over 2% during pre-market trading hours on Tuesday, at $35.42.

Goldman Sachs set the most optimistic price target at $54, while JP Morgan was the most conservative at $43.

“CoreWeave exhibits a track record of being first to deploy next-gen GPUs, making it difficult for other hyperscalers to claim industry leadership,” JP Morgan noted.

Goldman Sachs, while neutral in its rating, cited the firm’s uniqueness and lack of direct public peers as justification for its $54 target.

Customer concentration and macro headwinds raise red flags

Despite the enthusiasm, analysts also flagged significant concerns.

Chief among them is CoreWeave’s dependence on a small number of clients.

In 2023, nearly 77% of its revenue came from just two customers, one of which is believed to be Microsoft.

Barclays cautioned that the company’s strong ties with Microsoft and OpenAI—cemented by a recent $11.9 billion, five-year deal—could be both a strength and a vulnerability.

“Close relationship with Microsoft and OpenAI could cut both ways … and the customer concentration here does pose a risk,” Barclays said.

Morgan Stanley, which rated the stock “equal-weight,” added that ongoing economic uncertainty and weakness in equity markets could keep investor appetite in check.

“Volatile macro (and equities) backdrop may limit investors’ willingness,” the firm noted.

JP Morgan also warned that the capital-intensive nature of CoreWeave’s operations, driven by debt, may not appeal to risk-averse investors, calling the company “a wild, lumpy, volatile ride.”

IPO falls short of initial targets amid cooling investor sentiment

CoreWeave’s IPO, initially expected to be a blockbuster, fell short of expectations.

The company had aimed to price shares between $47 and $55, potentially raising up to $2.5 billion.

However, tepid demand forced it to scale back the offering to 37.5 million shares, down from the originally planned 49 million.

“There’s a lot of headwinds in the macro,” CEO Michael Intrator admitted in an interview on CNBC last month. “And we definitely had to scale or rightsize the transaction for where the buying interest was.”

The listing was seen as a litmus test for investor appetite in AI-related stocks amid heightened volatility.

While hopes for a more favourable regulatory environment under a possible Trump re-election had buoyed sentiment early on, rising tariff concerns and macroeconomic uncertainty have weighed heavily since.

The post Analysts are largely bullish on CoreWeave despite post-IPO struggles: read why appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
US stocks rebound on Tuesday: Dow up 400 points, Nasdaq surges 1%
next post
Can reselling jets made for China to Asian airlines manage headwinds for Boeing? Here’s what experts say

Related Posts

Asian markets close: Nikkei, Kospi down; Sensex closes...

May 19, 2025

Qualcomm unveils AI chips for data centres with...

May 19, 2025

Best crypto to buy now: Bitcoin Pepe leads...

May 19, 2025

JPMorgan cuts Netflix rating, citing balanced risk-reward post-rally;...

May 19, 2025

Bitcoin ETF open interest dips 5% to $29.47B...

May 19, 2025

US stocks slip in the red on Monday:...

May 19, 2025

Why this brokerage downgraded UnitedHealth’s rating to ‘hold’

May 19, 2025

Should Klarna IPO remain on watch list after...

May 19, 2025

Nvidia opens NVLink Fusion ecosystem, expands Taiwan AI...

May 19, 2025

Cathie Wood says Trump’s tariffs could unlock tech...

May 19, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • New research from IoT Analytics highlights the top 10 industrial technology trends

    June 7, 2025
  • Asian stocks end mixed: Hang Seng snaps winning streak, Nikkei jumps 0.5%

    June 7, 2025
  • Starlink reportedly secures key licence in India, moves closer to launching services

    June 7, 2025
  • US stocks surge at open: S&P up 0.9%, Dow jumps 400 points

    June 7, 2025
  • Goldman Sachs sees little upside for Tesla on falling sales volume

    June 7, 2025
  • Trump-Musk feud could end up helping Tesla stock, Tom Lee predicts

    June 7, 2025

Editors’ Picks

  • 1

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 2

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025
  • 6

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 7

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025

Categories

  • Economy (1,383)
  • Editor's Pick (144)
  • Investing (165)
  • Stock (892)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Why this brokerage downgraded UnitedHealth’s rating to...

May 19, 2025

China responds to Donald Trump’s 104% tariffs...

April 9, 2025

Prada acquires Versace in €1.25 billion deal:...

April 11, 2025