CoreWeave shares roared back to life today.
Shares of CoreWeave (CRWV +22.55%) jumped today, finishing up 23%. The massive gain came as the S&P 500 and Nasdaq Composite gained 0.8% and 1.1%, respectively.
After months of declines, CoreWeave investors rejoiced as shares finally had a big day — recovering much of their post-peak drop — after the stock received a buy rating from Citigroup, which renewed coverage on Thursday.
Today’s Change
(22.55%) $15.26
Current Price
$82.94
Key Data Points
Market Cap
$41B
Day’s Range
$70.75 – $84.28
52wk Range
$33.52 – $187.00
Volume
1.9M
Avg Vol
31M
Gross Margin
49.23%
Citigroup’s rating comes with some caveats
The neocloud operator received a buy rating from Citigroup analysts who see significant upside in the volatile stock. However, the firm also dramatically reduced its previous price target from $192 to $135, and critically, Citi added its high-risk designation to the rating, citing “limited trading history and high customer concentration, which may expose shares to greater volatility.”
Image source: Getty Images.
The timing couldn’t have been better for CoreWeave shares, as a broader rally hit the AI market following Micron’s massive earnings report on Wednesday. The memory chipmaker blew past analyst targets, helping to relieve anxiety about an AI bubble.
CoreWeave walks a very fine line
If there is a bubble, the risk to CoreWeave is existential. But a bubble isn’t necessary for shares to tank long term. Its biggest customers are also its biggest competitors. If AI demand growth slows enough for hyperscalers to meet it with internal capacity, Microsoft and others will almost certainly opt to bring workloads in-house rather than pay a middleman like CoreWeave.
Citigroup is an advertising partner of Motley Fool Money. Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.










