Cloud Stock Newbie Oversold Ahead of Earnings

Cloud platform CoreWeave Inc (NASDAQ:CRWV) is down 6.2% to trade at $107.36, as investors prepare for the company's third-quarter earnings, due out after the close Monday, Nov. 10. Since the company went public in late March with an initial public offering (IPO) of $40, the shares have added 168%, despite recently pulling back toward the $100 level. Since the start of the quarter the stock has shed 20%, leaving ample opportunity for some upbeat post-earnings price action.

CoreWeave stock is sporting a 14-day Relative Strength Index (RSI) rating of 30, deep in "oversold" territory and possibly overdue for a near-term bounce.

Short interest has shed 9% in the past two reporting periods, yet the 29.44 million shares sold short now accounts for 10.4% of the stock's total available float. At the stock's average pace of trading, it would take short sellers one full day to buy back these bearish bets.

Since going public earlier this year, CRWV has only reported earnings twice, both ending with a next-day loss in shares with an average drawdown of 11.7%. This quarter, analysts are expecting a larger-than-usual 17.1% move, regardless of direction.