What's Going On With CoreWeave Stock Tuesday?

CoreWeave Inc. (NASDAQ:CRWV) stock traded lower Tuesday after Alphabet Inc.'s (NASDAQ:GOOGL) Google and Blackstone Inc. (NYSE:BX) announced a major artificial intelligence infrastructure joint venture, raising fresh competitive concerns across the AI cloud sector.

The announcement weighed on neocloud stocks, with Nebius Group Inc. (NASDAQ:NBIS) also declining as investors reassessed the competitive landscape for specialized AI infrastructure providers.

The sell-off appeared tied to concerns about intensifying competition in the rapidly expanding AI cloud market rather than any immediate deterioration in company fundamentals.

At last check Tuesday, CoreWeave shares had fallen 8.07% to $95.39, while Nebius Group shares were down 4.92% to $190.02, according to Benzinga Pro data.

Analyst Flags Margin And Debt Concerns

Separately, DA Davidson analyst Gil Luria initiated coverage on CoreWeave with a Neutral rating and cut his price forecast to $100 from $175, citing rising input costs and margin pressure.

Luria said the company generates adjusted EBIT margins of about 1% on roughly $8 billion in annual revenue, making profitability vulnerable as memory and infrastructure costs increase.

He also warned that CoreWeave's multi-year contracts may not fully hedge long-term pricing risks, while execution risks remain elevated due to the company's rapid expansion and heavy reliance on debt financing.

CoreWeave Analyst Consensus & Recent Actions

The stock carries a Buy rating with an average price forecast of $133.84. Recent analyst moves include:

• DA Davidson: Downgraded to Neutral (Lowers forecast to $100.00) (May 18)
• Citigroup: Buy (Raises forecast to $158.00) (May 14)
• Cantor Fitzgerald: Overweight (Raises forecast to $167.00) (May 11)

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