CoreWeave (CRWV) Gives up Gains as Analyst Turns Neutral

We recently published Bloodbath on the Street: These 10 Stocks Crashed Hard. CoreWeave, Inc. (NASDAQ:CRWV) is one of the worst-performing stocks on Wednesday.

CoreWeave extended its losing streak to a third straight day on Wednesday, dropping 7.6 percent to close at $159.5 apiece as investors soured on an investment firm’s conservative rating for its stock.

HC Wainwright initiated coverage on CoreWeave, Inc.’s (CRWV) stock with a “neutral” stance, saying that its shares have outpaced fundamentals since its initial public offering.

According to HC Wainwright, CoreWeave, Inc.’s (NASDAQ:CRWV) jump to $173 from its $40 IPO boosted its market capitalization to $83 billion, which it deemed “stretched” given heavy spending plans and looming financial needs.

However, it noted that CoreWeave, Inc.’s (NASDAQ:CRWV) focus on high-performance, graphics chip-based infrastructure puts it at the center of a fast-growing market.

A technical analyst using a cloud-based analytics dashboard for financial services.

HC Wainwright said it expects the company to shell out between $20 billion and $23 billion this year to meet customer obligations.

While we acknowledge the potential of CRWV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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