CoreWeave (CRWV) Stock Plunges 20% as Meta Eyes AI Cloud Entry — Analyst Sees Major Buying Opportunity

TLDR

• CoreWeave shares plunged 14% Wednesday followed by another 5.5% decline Thursday, settling at $80.97
• Bloomberg reported Meta Platforms is considering launching a cloud service to monetize surplus AI computing capacity
• The social media giant currently ranks among CoreWeave’s most significant clients
• SoftBank separately revealed intentions to enter America’s AI cloud sector with SB Neo
• Rosenblatt Securities reaffirmed its Buy recommendation and $250 price objective, describing the downturn as an attractive entry point

Shares of CoreWeave (CRWV) experienced a dramatic selloff this week. The artificial intelligence cloud infrastructure provider tumbled 14% Wednesday before sliding an additional 5.5% Thursday, ending at $80.97 and erasing more than $7.5 billion in total market capitalization over the two-day period.

CoreWeave, Inc. Class A Common Stock, CRWV

The catalyst came from a Bloomberg article revealing that Meta Platforms is evaluating options to commercialize its unused AI computational resources by offering them to external businesses — a move that would position the tech giant as a direct competitor in the neocloud space where CoreWeave currently thrives.

The development carries particular weight given that Meta represents one of CoreWeave’s most important customers, creating a scenario where a major client could simultaneously become a direct market rival.

The firm further emphasized its belief that the expanding AI infrastructure investment trend represents “a rapidly expanding market, not a zero-sum game.”

The market reaction wasn’t isolated to CoreWeave. Shares of competing neocloud provider Nebius also experienced declines following the Meta announcement, indicating investors view this development as an industry-wide threat rather than company-specific risk.

Rosenblatt Analysts Remain Confident

While many investors headed toward the exits, Rosenblatt Securities took a contrarian stance. Analysts John McPeake and Tanu Chauhan released a note Wednesday evening characterizing the selloff as “presents a buying opportunity.”

Their analysis highlighted persistent robust demand for GPU computing capabilities, with capacity constraints remaining widespread throughout the sector. The analysts also emphasized an important contractual consideration — that Meta most likely lacks contractual authorization to sublease the computing power it has secured from CoreWeave under agreements extending through 2032 to outside parties.

Rosenblatt reaffirmed its Buy rating while maintaining its $250 price objective, implying potential appreciation of approximately 209% from present price levels.

Wall Street’s broader assessment shows more divergence. Among 35 analysts tracking the stock, 21 recommend buying, 12 suggest holding, and 2 advise selling. The average price target stands at $135, representing roughly 58% upside from where shares currently trade.

SoftBank Announcement Compounds Pressure

Compounding Thursday’s decline, SoftBank disclosed plans to establish its own AI cloud operation in the United States, provisionally named SB Neo. This represents yet another prospective competitor entering the market segment CoreWeave has been developing.

CoreWeave shares now show a modest 13% gain year-to-date but have declined 51% over the trailing twelve months. The stock trades within a 52-week range spanning from $63.80 to $166.22.

The company’s most recent quarterly results, released May 7, demonstrated revenue of $2.08 billion — representing 111.6% year-over-year growth. However, profitability fell short of expectations, with a reported loss of $1.40 per share compared to the anticipated loss of $1.17.

Insider transaction activity has drawn attention from market watchers. During the past 90 days, company insiders have divested over 26.5 million shares valued at more than $3 billion.

On the institutional investment front, Vanguard substantially expanded its stake by 275.6% during the fourth quarter, acquiring an additional 20.4 million shares.

CoreWeave stock began Thursday’s session at $85.68, carrying a market capitalization of $38.35 billion.

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