What's Driving CoreWeave (CRWV) Stock Higher Today?

CoreWeave Inc (NASDAQ:CRWV) shares are up Thursday morning following a strong rebuttal from the company’s CEO regarding the company’s financing strategy.

The stock is moving higher as broader markets are gaining, with the Nasdaq-100 up 0.97% and the S&P 500 gaining 0.53%, adding to the positive sentiment around tech stocks. Here’s what investors need to know.

• CoreWeave stock is showing exceptional strength. Why are CRWV shares rallying?

Dismissing Circular Financing Claims

In a recent podcast, CEO Michael Intrator dismissed allegations of circular financing with Nvidia labeling such claims 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 use of debt is managed through special purpose vehicles, ensuring that revenue from contracts with major clients like Microsoft and Meta Platforms 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.

The broader market is also experiencing a positive trend Thursday. CoreWeave’s rise aligns with this upward movement, indicating that the stock is benefiting from the overall bullish sentiment in the tech sector.

Short-Term Strength Contrasts With Long-Term Weakness

CoreWeave is currently trading 24.1% above its 20-day simple moving average (SMA) but is 5.1% below its 100-day SMA, indicating some short-term strength while showing longer-term weakness. Shares have increased by 143.10% over the past 12 months and are currently positioned closer to their 52-week highs than lows.

The RSI is at 57.50, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold. Meanwhile, the MACD is above its signal line, indicating bullish momentum.

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

• Key Resistance: $105.50
• Key Support: $85.00

Is This Earnings Report A Turning Point?

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) (Jan. 12)
• Wells Fargo: Overweight (Lowered Target to $125.00) (Jan. 8)
• Truist Securities: Initiated with Hold (Target $84.00) (Jan. 6)

Benzinga Edge Rankings

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

• Value: Neutral (Score: 71/100) — The stock is fairly valued compared to its peers.
• Momentum: Bullish (Score: 83/100) — Stock is outperforming the broader market.

The Verdict: CoreWeave’s Benzinga Edge signal reveals a classic ‘High-Flyer’ setup. While the Momentum score confirms the strong trend, the Value score suggests that the stock is fairly valued, indicating potential for further growth without excessive risk.

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.

CoreWeave Shares Surge

CRWV Price Action: CoreWeave shares were up 10.95% at $99.61 at the time of publication on Thursday, according to Benzinga Pro data.

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