AI Darling Corweave Attracts Hedge Fund Giant's Eye - Why One Analyst Says It's Time To Buy

AI Darling Corweave Attracts Hedge Fund Giant’s Eye – Why One Analyst Says It’s Time To Buy

CoreWeave Inc CRWV shares are trading higher Thursday morning after an earlier surge following news of a significant investment. Here’s what investors need to know.

What To Know: Shares had risen in Wednesday’s after-hours session after regulatory filings revealed that U.S. trading giant Jane Street took a 5.4% passive stake in the company as of August 13. The purchase amounted to approximately 19.95 million shares of the AI-focused cloud computing provider.

The investment comes amid a challenging period for the stock, which has fallen nearly 40% since August 12th and has been trending lower since late June.

The recent sell-off followed mixed second-quarter results and the expiration of the company’s IPO lockup period, which made a majority of shares eligible for sale and appeared to add to selling pressure. CoreWeave’s second-quarter revenue of $1.21 billion beat estimates, but its loss of 27 cents per share was wider than the 17 cents per share loss anticipated by analysts.

Adding to the news, H.C. Wainwright & Co. upgraded CoreWeave to a Buy rating from Neutral on Thursday, establishing a $180 price target. The firm stated the stock’s valuation has “sunk deep enough” and that recent selling pressure from the lockup expiration is “not indicative of future performance”.

The upgrade cited fundamental improvements, including raised revenue guidance for fiscal year 2025 and the company’s position as a leader with a strong relationship with NVIDIA Corp NVDA.

Price Action: According to data from Benzinga Pro, CRWV shares are trading higher by 2.63% at $93.84 Thursday morning. The stock has a 52-week high of $187.00 and a 52-week low of $33.52.

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How To Buy CRWV Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in CoreWeave’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

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