CoreWeave CEO Defends Financing Strategy: What Investors Need To Know

CoreWeave Inc (NASDAQ:CRWV) shares are trading marginally higher on Wednesday, despite overall market weakness, following the CEO’s strong rebuttal of allegations regarding the company’s financial practices.

What’s next for CRWV stock?

The stock is moving higher as broader markets are experiencing a downturn, with the Nasdaq-100 down 1.8% and the S&P 500 down 0.9%. Here’s what investors https://www.benzinga.com/markets/equities/26/01/49834939/coreweave-ceo-calls-nvidia-circular-financing-claims-ridiculous-says-stake-too-small-to-prop-up-42-billion-company)">need to know.

• CoreWeave shares are trending higher. Why is CRWV stock advancing?

Why CoreWeave’s Financing Strategy Is Misunderstood

In a recent podcast appearance, CEO Michael Intrator dismissed claims that CoreWeave is engaged in “circular financing” with Nvidia Corp, labeling the narrative as “ridiculous” and mathematically unsound. He emphasized that Nvidia’s $300 million investment is minimal compared to CoreWeave’s total capital of over $25 billion, which supports a valuation of $42 billion.

Intrator further explained that the company’s aggressive use of debt is managed through special purpose vehicles, ensuring that revenue from contracts with major clients like Microsoft Corp and Meta Platforms Inc (NASDAQ:META) is ring-fenced to cover operating expenses and lenders first. This structure is designed to mitigate risk and is comparable to traditional infrastructure financing methods.

Short-Term Strength Masks Long-Term Weakness

The stock is currently trading 14.3% above its 20-day simple moving average (SMA) but is 13.6% below its 100-day SMA, indicating some short-term strength while showing longer-term weakness. Over the past 12 months, shares have increased by 120.61% and are currently positioned closer to their 52-week highs than lows.

The RSI is at 55.93, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold. Meanwhile, the MACD is above the signal line, indicating bullish momentum.

The combination of a neutral RSI and bullish MACD suggests mixed momentum.

• Key Resistance: $91.00
• Key Support: $85.00

What Earnings Expectations Mean For Investors

Investors are looking ahead to the next earnings report on February 14.

• EPS Estimate: Loss of 65 cents
• Revenue Estimate: $1.54 billion

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $125.52. Recent analyst moves include:

• Barclays: Equal-Weight (Lowered Target to $90.00)
• Wells Fargo: Overweight (Lowered Target to $125.00)
• Truist Securities: Initiated with Hold (Target $84.00)

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for CoreWeave, highlighting its strengths and weaknesses compared to the broader market:

• Momentum: Bullish (Score: 83/100) — Stock is outperforming the broader market.
• Value: Risk (Score: 7/100) — Trading at a steep premium relative to peers.

The Verdict: CoreWeave’s Benzinga Edge signal reveals a classic ‘High-Flyer’ setup. While the Momentum (83) confirms the strong trend, the extremely low Value (7) score warns that the stock is priced for perfection—investors should ride the trend but use tight stop-losses.

Top ETF Exposure

• Tradr 2X Long CRWV Daily ETF (NASDAQ:CWVX): 118.53% Weight
• iShares US Digital Infrastructure and Real Estate ETF (NYSE:IDGT): 4.65% Weight
• REX IncomeMax Option Strategy ETF (NASDAQ:ULTI): 5.05% Weight

Significance: Because CRWV carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

Price Action

CRWV Price Action: CoreWeave shares were up 0.94% at $88.30 at the time of publication on Wednesday, according to Benzinga Pro data.

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