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CoreWeave Shares Fall After Jefferies and Citigroup Downgrades

Very large 2026 capital spending guidance alongside persistent losses with heavy insider stock sales has raised investor concern about liquidity and execution.

Overview

  • Shares plunged about 11.4% on Friday, falling to an intraday low near $71.67 and closing around $71.88 on volume of roughly 25.2 million shares.
  • Jefferies and Citigroup cut their ratings from Buy to Hold earlier in the week, a shift that traders and reporters linked to the accelerated sell‑off.
  • CoreWeave reported Q1 revenue of $2.08 billion, up 111.6% year over year, while adjusted EPS missed at -$1.40 and reported operating margins weakened.
  • Management projects extremely large 2026 capital expenditures of $31 billion to $35 billion, which, combined with a debt‑to‑equity ratio near 3.68 and quick/current ratios around 0.31, heightens concerns about near‑term funding needs.
  • Insiders have sold roughly 17.07 million shares worth about $1.98 billion over 90 days and analysts remain divided with a Moderate Buy consensus and an average price target near $136, leaving the stock sensitive to news on capex pacing, liquidity moves and customer demand.