CoreWeave Stock (CRWV) Plummets 8% as The Verge Labels It ’Ground Zero of the AI Bubble’
Another day, another AI darling takes a hit. CoreWeave's stock cratered 8% after The Verge's scathing piece positioned the GPU cloud provider as the poster child of inflated AI valuations.
When the hype train derails
No fancy charts or forward-looking statements here—just cold, hard market reaction. The numbers speak for themselves: an 8% nosedive after being branded the 'heart of the AI bubble.' Turns out even hot tech sectors aren't immune to good old-fashioned skepticism.
Wall Street's latest shiny object loses its luster
Investors are finally asking the uncomfortable question—how many GPU clusters does it take to justify a bubble? CoreWeave just became the latest casualty in the market's endless cycle of irrational exuberance and sudden sobriety. Welcome to the big leagues, CRWV—where today's moonshot is tomorrow's margin call.
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It must be mentioned that despite beating Q3 revenue and EBITDA estimates and disclosing a massive $56 billion backlog of contracted revenue, CRWV revised its full-year guidance downward. This sent Coreweave stock down more than 6% in after-hours trading on November 2.
Report Highlights CoreWeave’s Rapid Growth
According to the report, CoreWeave, once an ethereum mining firm, has become an AI infrastructure giant by leasing Nvidia’s (NVDA) compute to firms such as OpenAI () and Meta (META).
Further, the article pointed to CoreWeave’s reliance on financial engineering, using debt and equity to scale quickly, and DEEP ties with Nvidia, both as a supplier and investor.
Moreover, the article stated that the company’s growth depends on continued AI demand, cheap capital, and Nvidia’s dominance.
Importantly, The Verge may soon release a full investigative report on CoreWeave, revealing more about its financials and operations.
CRWV Launches Zero-Fee Migration for AI Data Transfers
Earlier today, CoreWeave launched a new Zero Egress Migration (0EM) program that removes data transfer fees (egress costs) for customers moving large-scale AI datasets from other major cloud providers to the CoreWeave platform.
This MOVE aims to reduce the cost and complexity of data migration, which typically involves egress fees charged by third-party providers.
Specifically, CoreWeave will cover egress costs incurred when migrating data from third-party clouds, including Amazon (AMZN) AWS, Microsoft (MSFT) Azure, Google (GOOGL) Cloud, IBM (IBM), Alibaba (BABA), and most others.
Is CRWV a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CRWV stock based on 13 Buys, 11 Holds, and one Sell assigned in the past three months. Further, the average CoreWeave stock price target of $147.96 per share implies 89.94% upside potential.
