CoreWeave Inc (NASDAQ:CRWV) shares are up on Monday following the company’s CEO, Michael Intrator, rejecting allegations of “circular financing” with NVIDIA Corp (NASDAQ:NVDA). The stock’s rise occurs as broader markets are experiencing mixed performance. Here’s what investors need to know.
- CoreWeave stock is among today’s top performers. What’s fueling CRWV momentum?
The Misconception Behind Nvidia’s Investment Strategy
Intrator described the narrative surrounding Nvidia’s minority stake in CoreWeave as “ridiculous” and mathematically unsound, emphasizing that Nvidia’s $300 million investment is minimal compared to CoreWeave’s total capital of over $25 billion. He dismissed concerns about the relationship as a distraction, likening it to a “fly on the back of an elephant.”
The CEO also defended CoreWeave’s aggressive use of debt, explaining the company’s strategy of utilizing special purpose vehicles to manage risk effectively. This approach ensures that revenue from investment-grade contracts flows directly into accounts that cover operating expenses and lenders before profits are released to CoreWeave.
Surging Stock Performance: What’s Ahead?
The stock is currently trading 16.6% above its 20-day simple moving average (SMA) and 4.6% above its 50-day SMA, indicating short-term strength. Over the past 12 months, shares have gained approximately 123.55% and are positioned closer to their 52-week highs than lows.
The RSI is at 49.74, which is considered neutral territory, while MACD is above its signal line, indicating bullish momentum. The combination of a neutral RSI and bullish MACD suggests mixed momentum.
- Key Resistance: $91.00
- Key Support: $85.00
Unpacking The Bullish Analyst Predictions
Investors are looking ahead to the company’s next earnings report on Feb. 14.
- EPS Estimate: Loss of 65 cents
- Revenue Estimate: $1.54 billion
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $126.55. Recent analyst moves include the following:
- Wells Fargo: Overweight (Lowered Target to $125.00)
- Truist Securities: Initiated with Hold (Target $84.00)
- Jefferies: Buy (Lowered Target to $120.00)
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for CoreWeave, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Bullish (Score: 83/100) — Stock is outperforming the broader market.
- Value: Risk (Score: 4/100) — Trading at a steep premium relative to peers.
The Verdict: CoreWeave’s Benzinga Edge signal reveals a classic “High-Flyer” setup. While the Momentum score (83) confirms the strong trend, the extremely low Value score (4) warns that the stock is priced for perfection — investors should ride the trend but use tight stop-losses.
Top ETF Exposure
- Tradr 2X Long CRWV Daily ETF (NASDAQ:CWVX): 118.53% Weight
- REX IncomeMax Option Strategy ETF (NASDAQ:ULTI): 5.05% Weight
Significance: Because CRWV carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
CoreWeave Shares Surge
CRWV Price Action: CoreWeave shares were up 9.77% at $87.97 at the time of publication on Monday, according to Benzinga Pro data.
Image: Shutterstock
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