CoreWeave (CRWV) Stock Drops Amid Broad Market Sell-Off

CoreWeave Inc (NASDAQ:CRWV) shares are down on Tuesday following a recent strong rebuttal from the company’s CEO regarding its financing strategy. The stock’s decline comes as the broader market is experiencing a mixed session, with the S&P 500 down 1.5%.

Stocks across sectors are trading lower Tuesday amid overall market weakness after President Donald Trump posted on social media that, starting February 1st, Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland will be charged a 10% tariff on all goods sent to the US.

President Trump has recently escalated rhetoric about making Greenland a US territory.

CoreWeave CEO Explains Financing Strategy

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 currently experiencing declines, with the Nasdaq down 1.6% and the S&P 500 down 1.47%. CoreWeave’s drop aligns with the overall trend, indicating that the stock is caught in a broader sell-off rather than moving against positive market conditions.

Is CoreWeave Poised For A Breakout?

CoreWeave is currently trading 27.1% above its 20-day simple moving average (SMA) but is 1.3% below its 100-day SMA, indicating some short-term strength while showing longer-term weakness. Shares have increased by 142.29% over the past 12 months and are currently positioned closer to their 52-week highs than lows.

The RSI is at 62.18, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold. Meanwhile, 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

Analysts Are Divided On CRWV Stock

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: Risk (Score: 6.35/100) — Trading at a steep premium relative to peers.

The Verdict: CoreWeave’s Benzinga Edge signal reveals a classic ‘High-Flyer’ setup. While the Momentum indicates some strength, the low Value score warns that the stock is priced for perfection—investors should exercise caution.

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

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.

CRWV Price Action

CRWV Price Action: CoreWeave shares were down 4.67% at $96.45 at the time of publication on Tuesday, according to Benzinga Pro data.

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