TLDR
- Jane Street acquired 5.4% CoreWeave stake (19.99M shares), driving 2% stock rally
- H.C. Wainwright upgraded CRWV to Buy with $180 price target after recent decline
- Company raised 2025 revenue guidance to $5.25B, up from $5.0B previous forecast
- Stock under pressure since IPO lock-up expired Aug 14, freeing 84% of shares
- Q2 revenue jumped 207% but losses exceeded expectations
CoreWeave shares jumped 2% Thursday morning after Jane Street disclosed a major stake in the AI infrastructure company. The quantitative trading firm revealed ownership of 19.99 million shares, representing a 5.4% position.
Jane Street now ranks among CoreWeave’s largest institutional investors. Only Magnetar Financial, FMR, and Nvidia hold bigger positions in the cloud computing stock.
The investment comes as CoreWeave faces trading pressure from its recent IPO lock-up expiration. On August 14, roughly 84% of outstanding shares became tradeable for the first time since the March IPO.
Fresh Analyst Confidence Emerges
H.C. Wainwright analyst Kevin Dede upgraded CoreWeave from Neutral to Buy Thursday. He set a $180 price target on the stock, citing attractive valuation after recent declines.
CoreWeave went public at $40 per share in March. The stock soared to $183 in late June before retreating following second-quarter earnings.
Dede highlighted the company’s raised revenue guidance as a positive catalyst. CoreWeave increased its fiscal 2025 revenue forecast to $5.25 billion from $5.0 billion previously.
The 5% guidance increase came despite mixed second-quarter results. CoreWeave reported 207% revenue growth but posted larger losses than analysts expected.
Nvidia Partnership Provides Edge
The analyst emphasized CoreWeave’s strategic partnership with Nvidia as a competitive advantage. CoreWeave was first to deploy Nvidia’s latest AI chip generations, positioning it ahead of rivals.
Research firm SemiAnalysis recently confirmed CoreWeave’s platform strength in AI infrastructure adoption. This validates the company’s technology leadership in the growing market.
Jane Street’s investment signals renewed institutional confidence despite recent volatility. The lock-up expiration triggered over $1 billion in block trades arranged by major investment banks.
Wall Street Remains Cautious
Current Wall Street consensus remains neutral on CoreWeave stock. Analysts maintain a Hold rating based on 14 Hold recommendations, 5 Buys, and 1 Sell.
The average price target of $116.45 suggests 27% upside potential from current levels around $91. However, the expanded share float may continue pressuring prices near-term.
Dede believes the stock trades at attractive levels relative to sales and earnings multiples. He expects CoreWeave’s AI infrastructure focus to drive long-term growth as demand accelerates.
Investors await upcoming client announcements and quarterly results for momentum indicators. The company’s position in high-performance computing and AI workloads remains its primary growth driver.
