CoreWeave Stock (CRWV) Sinks 8% on Morgan Stanley Rating Ahead of Q4 Earnings

FomoAnxiety · 2026-02-24T06:15:42+00:00

CoreWeave's shares dropped over 8% after Morgan Stanley issued a Hold rating, citing skepticism about the company's growth potential. There's concern over operational issues and customer demand failures. Analysts anticipate a wider loss for Q4 but expect significant revenue growth. The consensus remains a Moderate Buy, with an average price target suggesting 33% growth potential.

FomoAnxiety

2026-02-24 06:15:42

Abstract generation in progress

Shares in CoreWeave (CRWV), the AI cloud infrastructure provider, fell more than 8% on Friday. That move coincided with Morgan Stanley’s (MS) new Hold rating on the stock and the failure of asset manager Blue Owl Capital (OWL) to secure funding for its data center deal with CoreWeave.

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Why Is Morgan Stanley Bearish on CoreWeave?

The banking giant cited rising skepticism about the New Jersey-based company’s ability to confidently deliver its ambitious growth targets. Morgan Stanley’s five-star analyst Keith Weiss stepped forward with a price target of $99, implying about 10% upside.

Weiss contended that recent slip-ups on the operations side amid a tight supply market have led to these concerns. The comment comes as investors have dragged CoreWeave to court, alleging inability to meet customer demand.

Meanwhile, the bearish rating comes about a week before the delivery of CoreWeave’s fourth-quarter fiscal 2025 earnings.

What Is the Consensus Forecast for Q4 Earnings?

For the results — which is expected to arrive on Thursday, February 26 — analysts expect CoreWeave to post a wider adjusted loss per share of $0.50 compared to a loss per share of $0.8 from the year-ago quarter.

However, revenue is expected to reach $1.53 billion, up by a massive 105% from a year ago but only a 12.5% growth compared to its previous quarter.

Weiss noted that expectations for the results remain elevated, even as AI chip leader Nvidia (NVDA) recently committed to a $2 billion deal that will see CoreWeave develop over 5 gigawatts of capacity by 2030.

Morgan Stanley Lays Out Sentiment Drivers

According to Morgan Stanley, several key factors have to be in place to improve the team’s rating on CoreWeave. They include:

Clear evidence of progress towards scaling** active power** meaningfully beyond 850 megawatts.
Past data center delays addressed and brought back on schedule.
Projects under construction translated into actual capital spending.
Backlog and customer base showing sustained growth and broader diversification

Is CRWV Stock a Good Buy?

Across Wall Street, CoreWeave’s shares remain a Moderate Buy based on analysts’ consensus rating. This breaks down to nine Buys and eight Holds issued over the past three months.

However, the average CRWV price target of $118.57 implies about 33% growth potential.

See more CRWV analyst ratings here.

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