TLDR
- CoreWeave stock fell 12.1% to $93.17 on Tuesday in heavy trading volume, up 28% above its daily average.
- The drop was driven by rising Treasury yields and fears of excessive AI infrastructure spending hitting neocloud stocks broadly.
- Despite the selloff, quarterly revenue grew 112.5% year over year to $2.58 billion, beating loss estimates by $0.38 per share.
- Analysts hold a “Moderate Buy” consensus with an average price target of $138.72, though Raymond James downgraded to “Hold” in July.
- Insider selling has been heavy, with over 9 million units sold in the past three months, including CEO Michael Intrator selling 200,000 at $89.18.
CoreWeave stock dropped 12.1% on Tuesday, falling from $106.00 to $93.17 during mid-day trading. Volume hit nearly 37 million units, about 28% above the stock’s daily average.
CoreWeave, Inc. Class A Common Stock, CRWV
The selloff was part of a broader move away from neocloud stocks. Rising long-term Treasury yields are putting pressure on high-growth companies whose valuations depend on future cash flows.
Geopolitical tensions in the Middle East added to the pressure. Investors pulled back from capital-intensive tech names across the board.
CoreWeave’s heavy debt load made it a particular target. The company carries a debt-to-equity ratio of 5.53, one of the highest in its peer group.
Analysts worry that continued expansion will require more borrowing. That raises concerns about interest costs eating into earnings and cash flow if conditions tighten.
Insider activity also rattled investors. CEO Michael Intrator sold 200,000 units at $89.18 on August 11th, a 9.63% reduction in his ownership stake.
Insider Brannin McBee sold 53,000 units at $89.73 on August 10th. In total, insiders have offloaded over 9 million units worth roughly $895 million over the past three months.
Strong Revenue Growth Offers a Counterpoint
On the fundamental side, CoreWeave reported quarterly revenue of $2.58 billion, up 112.5% year over year. The company posted a loss of $1.14 per share, which was better than the analyst estimate of $1.52.
That beat did little to stop the selling on Tuesday, but it does underline that the business itself is growing fast. Analysts on average expect a full-year loss of $5.69 per share.
Bank of America noted that CoreWeave is benefiting from stronger pricing dynamics in AI compute. Hedge fund manager David Tepper also disclosed a CoreWeave position in his second-quarter 13F filing.
On the other side, Viking Global fully exited its position. That mixed institutional picture reflects the ongoing debate over whether CoreWeave’s growth justifies its debt burden.
Analyst Targets Remain Above Current Price
Wells Fargo raised its price target to $160 on August 12th, giving the stock an “overweight” rating. Truist lifted its target to $155 with a “buy” rating on the same date.
Mizuho took a more cautious stance, raising its target to just $115 with a “neutral” rating. Raymond James downgraded the stock from “Moderate Buy” to “Hold” back in July.
Across 36 analysts, 22 rate it a Buy, 11 a Hold, and 3 a Sell. The consensus price target sits at $138.72, roughly 49% above Tuesday’s close.
CoreWeave’s year-to-date performance still stands at 48.02% despite Tuesday’s drop. The stock’s 50-day moving average is $90.57, placing Tuesday’s close just above that level.
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