Particle.news
Download on the App Store

CoreWeave Rallies on DOE Genesis Selection and Citi Buy Rating

Citigroup's Buy call with a $135 target signals cautious confidence.

Overview

  • Shares rose 22.6% on Friday to close at about $83 after Citigroup initiated coverage at Buy, a day after the stock jumped roughly 19% intraday on the DOE Genesis Mission news.
  • Citigroup cut its target to $135 from $192 but cited strong bookings growth in Q3 and said management plans to announce a new credit facility in the first half of 2026.
  • CoreWeave was named to the Department of Energy’s Genesis Mission on Dec. 18, a high‑profile validation of its GPU cloud platform for national research and security use cases.
  • Recent coverage highlights heavy leverage and ongoing losses alongside rapid growth, including a December $2.25 billion convertible note issuance and continued capital intensity.
  • The company reports a $55.6 billion backlog with long‑term AI contracts, though execution risks from data‑center buildouts and recent weather‑related delays in Texas remain in focus.