CoreWeave (CRWV) Drops as HSBC Turns Bearish

We recently published These 10 Stocks Just Lost Their Spark. CoreWeave, Inc. (NASDAQ:CRWV) is one of the worst-performing companies on Thursday.

CoreWeave dropped by 7.57 percent on Thursday to close at $132.21 apiece as investors disposed of shares following an investment firm’s pessimistic outlook for the company.

In a market note, CoreWeave, Inc. (NASDAQ:CRWV) earned a “reduce” rating and a meager $32 price target from HSBC Global Research, marking a 76-percent downside from its latest closing price.

According to HSBC, the rating revision was based on CoreWeave, Inc.’s (NASDAQ:CRWV) overreliance on Microsoft (NASDAQ:MSFT) and Nvidia (NASDAQ:NVDA).

However, it noted that such clients have not adopted CoreWeave, Inc.’s (NASDAQ:CRWV) software services, weakening the company’s competitiveness and customer stickiness.

“Selling more value-added services driven by the software stack, as is done by general-purpose clouds, may be key to achieving stronger returns,” the market note said.

A close-up of a businesswoman using a laptop, being illuminated by the AI-enabled cloud interface sponsored by the company.

”But CoreWeave would first need to successfully shift to a general-purpose cloud offering and diversify away from Microsoft and Open AI (which together accounted for more than 72% of its revenue and most of its backlog in 1Q25) towards customers that require CoreWeave’s full software stack.”

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Disclosure: None. This article is originally published at Insider Monkey.