CoreWeave Faces Class Action Lawsuit Amid Significant Stock Declines
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy CRWV?
Source: Globenewswire
- Class Action Filed: Bleichmar Fonti & Auld LLP has initiated a class action lawsuit against CoreWeave and its executives for securities fraud, following significant stock drops due to potential violations of federal securities laws, with investors having until March 13, 2026, to apply to lead the case.
- Stock Price Volatility: On October 30, 2025, CoreWeave's stock dropped over 6% from $139.93 to $131.06 after Core Scientific failed to secure enough shareholder votes for the merger, indicating market concerns regarding the merger's viability.
- Guidance Downgrade: CoreWeave lowered its revenue and operating income guidance on November 10, 2025, due to delays from a third-party data center developer, causing a 16% drop in stock price from $105.61 to $88.39, highlighting operational shortcomings.
- Construction Delays Impact: On December 15, 2025, The Wall Street Journal reported delays in a major data center in Texas, leading to a further 3% decline in stock price from $72.35 to $69.50, exacerbating investor anxiety about the company's future prospects.
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Analyst Views on CRWV
Wall Street analysts forecast CRWV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CRWV is 123.23 USD with a low forecast of 68.00 USD and a high forecast of 180.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
25 Analyst Rating
12 Buy
13 Hold
0 Sell
Moderate Buy
Current: 93.190
Low
68.00
Averages
123.23
High
180.00
Current: 93.190
Low
68.00
Averages
123.23
High
180.00
About CRWV
CoreWeave, Inc. is a cloud infrastructure technology company. The Company offers the CoreWeave Cloud Platform, which consists of software and cloud services that deliver the automation and efficiency needed to manage complex artificial intelligence (AI) infrastructure. Its CoreWeave Cloud Platform is an integrated solution that is purpose-built for running AI workloads such as model training and inference. Its solutions include infrastructure services, managed software services, and application software services. Its Infrastructure Services provide its customers with access to advanced graphics processing unit (GPU) and central processing unit (CPU) compute, highly performant networking, and storage. Its Managed Software Services include CKS, a flexible virtual private cloud and a bare metal service that runs kubernetes directly on high-performance servers. Its Application Software Services build on top of its infrastructure and managed software services, integrating additional tools.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CoreWeave Faces Class Action Lawsuit Amid Significant Stock Declines
- Class Action Filed: Bleichmar Fonti & Auld LLP has initiated a class action lawsuit against CoreWeave and its executives for securities fraud, following significant stock drops due to potential violations of federal securities laws, with investors having until March 13, 2026, to apply to lead the case.
- Stock Price Volatility: On October 30, 2025, CoreWeave's stock dropped over 6% from $139.93 to $131.06 after Core Scientific failed to secure enough shareholder votes for the merger, indicating market concerns regarding the merger's viability.
- Guidance Downgrade: CoreWeave lowered its revenue and operating income guidance on November 10, 2025, due to delays from a third-party data center developer, causing a 16% drop in stock price from $105.61 to $88.39, highlighting operational shortcomings.
- Construction Delays Impact: On December 15, 2025, The Wall Street Journal reported delays in a major data center in Texas, leading to a further 3% decline in stock price from $72.35 to $69.50, exacerbating investor anxiety about the company's future prospects.
See More
Western Digital: The Hidden AI Storage Winner
- Market Demand Surge: Western Digital's revenue increased by 25% in the last quarter, exceeding $3 billion, demonstrating strong demand for storage solutions in the AI era and reinforcing its market leadership.
- Margin Expansion: The company's gross margin rose from 37.7% to 45.7%, indicating a significant enhancement in profitability, which is crucial for maintaining an edge in the competitive cloud storage market.
- Investor Attention Growth: Despite Western Digital's stock rising over the past year, trading at only 28 times forward earnings estimates suggests there is still room for growth, potentially attracting more investor interest.
- Infrastructure Opportunity: As cloud companies invest billions to trillions in data center construction, Western Digital, as a leader in storage devices, is expected to become a preferred partner for these enterprises, further driving its business growth.
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CoreWeave Accused of Misleading Investors in Class Action
- Lawsuit Background: Robbins LLP reminds investors of a class action filed on behalf of shareholders who purchased CoreWeave (NASDAQ: CRWV) securities between March 28, 2025, and December 15, 2025, alleging the company misled investors about its ability to meet customer demand.
- False Statement Allegations: The complaint claims that CoreWeave overstated its capacity to meet customer demand and failed to adequately disclose the risks associated with its reliance on a single third-party data center supplier, which could materially impact the company's revenue.
- Stock Price Volatility: Following a series of disclosures revealing the truth, CoreWeave's stock price plummeted from a high of $183.58 on June 20, 2025, to $69.50 on December 16, 2025, reflecting market concerns over the company's financial health.
- Investor Action Recommendations: Affected shareholders are advised to submit their papers by March 13, 2026, to serve as lead plaintiffs in the class action, representing other shareholders, while those who choose not to participate can remain absent class members eligible for recovery.
See More
Nvidia to Join OpenAI's Funding Round with Potentially Largest Investment
- Investment Scale Anticipation: At an event in Taipei, Nvidia CEO Jensen Huang announced that the company will participate in OpenAI's latest funding round, potentially making it the largest investment in Nvidia's history; although the exact amount remains unspecified, Huang emphasized it would be a 'huge' investment, reflecting strong confidence in OpenAI.
- Funding Goals and Valuation: OpenAI is in discussions to raise as much as $100 billion from various investors, and if successful, this funding round could value OpenAI at $750 billion, making it one of the world's most valuable private companies, highlighting the market's high regard for AI technology.
- Strategic Partnership: Nvidia's 'landmark strategic partnership' with OpenAI will enable the deployment of at least 10 gigawatts of AI data centers using Nvidia's next-generation Vera Rubin graphics processing units (GPUs), which not only strengthens the technical collaboration between the two but also lays a foundation for Nvidia's long-term growth.
- Market Reaction and Investor Concerns: Despite Huang's denial of reports regarding the investment size, investors are worried about the circular nature of AI deals, believing such relationships may artificially boost demand; Nvidia's early investment in OpenAI could yield substantial returns, yet uncertainties in the market persist.
See More
Nvidia Plans to Join OpenAI's Funding Round
- Investment Scale Anticipation: Nvidia CEO Jensen Huang announced at an event in Taipei that the company will participate in OpenAI's latest funding round, potentially making it “the largest investment we've ever made,” although the exact amount remains unspecified, indicating Nvidia's strong confidence in the AI sector.
- Strategic Partnership Deepening: The collaboration between Nvidia and OpenAI is intensifying, as highlighted by their earlier strategic partnership agreement, where OpenAI will utilize Nvidia's next-generation Vera Rubin GPUs to build at least 10 gigawatts of AI data centers, with Nvidia expected to invest up to $100 billion, further solidifying its leadership in the AI market.
- Market Reaction Concerns: Despite Huang dismissing concerns about the investment size as “nonsense,” the market is wary of the circular investment relationship between Nvidia and OpenAI, fearing that such agreements may artificially inflate demand and impact investor confidence.
- IPO Prospects Generate Excitement: OpenAI is reportedly planning an initial public offering (IPO) later this year, and as an early investor, Nvidia's stake in OpenAI could yield substantial returns, although uncertainties about the startup's future success remain a concern for investors.
See More
CoreWeave Securities Class Action Reminder
- Class Action Notice: Rosen Law Firm reminds investors who purchased CoreWeave securities between March 28 and December 15, 2025, to apply as lead plaintiffs by March 13, 2026, to potentially receive compensation without any out-of-pocket costs.
- Lawsuit Background: The lawsuit alleges that CoreWeave made false and misleading statements during the class period, overstating its ability to meet customer demand and underestimating the risks associated with reliance on a single third-party data center, which could materially impact the company's revenue.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, having achieved the largest securities class action settlement against a Chinese company in 2017, highlighting its strong track record in this field.
- Investor Guidance: Investors are advised to select qualified counsel with proven leadership experience, as many firms issuing notices may lack the necessary expertise and resources, ensuring that their rights are effectively protected.
See More
CoreWeave Faces Class Action Lawsuit Amid Significant Stock Declines
- Class Action Filed: Bleichmar Fonti & Auld LLP has initiated a class action lawsuit against CoreWeave and its executives for securities fraud, following significant stock drops due to potential violations of federal securities laws, with investors having until March 13, 2026, to apply to lead the case.
- Stock Price Volatility: On October 30, 2025, CoreWeave's stock dropped over 6% from $139.93 to $131.06 after Core Scientific failed to secure enough shareholder votes for the merger, indicating market concerns regarding the merger's viability.
- Guidance Downgrade: CoreWeave lowered its revenue and operating income guidance on November 10, 2025, due to delays from a third-party data center developer, causing a 16% drop in stock price from $105.61 to $88.39, highlighting operational shortcomings.
- Construction Delays Impact: On December 15, 2025, The Wall Street Journal reported delays in a major data center in Texas, leading to a further 3% decline in stock price from $72.35 to $69.50, exacerbating investor anxiety about the company's future prospects.
See More
Western Digital: The Hidden AI Storage Winner
- Market Demand Surge: Western Digital's revenue increased by 25% in the last quarter, exceeding $3 billion, demonstrating strong demand for storage solutions in the AI era and reinforcing its market leadership.
- Margin Expansion: The company's gross margin rose from 37.7% to 45.7%, indicating a significant enhancement in profitability, which is crucial for maintaining an edge in the competitive cloud storage market.
- Investor Attention Growth: Despite Western Digital's stock rising over the past year, trading at only 28 times forward earnings estimates suggests there is still room for growth, potentially attracting more investor interest.
- Infrastructure Opportunity: As cloud companies invest billions to trillions in data center construction, Western Digital, as a leader in storage devices, is expected to become a preferred partner for these enterprises, further driving its business growth.
See More
CoreWeave Accused of Misleading Investors in Class Action
- Lawsuit Background: Robbins LLP reminds investors of a class action filed on behalf of shareholders who purchased CoreWeave (NASDAQ: CRWV) securities between March 28, 2025, and December 15, 2025, alleging the company misled investors about its ability to meet customer demand.
- False Statement Allegations: The complaint claims that CoreWeave overstated its capacity to meet customer demand and failed to adequately disclose the risks associated with its reliance on a single third-party data center supplier, which could materially impact the company's revenue.
- Stock Price Volatility: Following a series of disclosures revealing the truth, CoreWeave's stock price plummeted from a high of $183.58 on June 20, 2025, to $69.50 on December 16, 2025, reflecting market concerns over the company's financial health.
- Investor Action Recommendations: Affected shareholders are advised to submit their papers by March 13, 2026, to serve as lead plaintiffs in the class action, representing other shareholders, while those who choose not to participate can remain absent class members eligible for recovery.
See More
Nvidia to Join OpenAI's Funding Round with Potentially Largest Investment
- Investment Scale Anticipation: At an event in Taipei, Nvidia CEO Jensen Huang announced that the company will participate in OpenAI's latest funding round, potentially making it the largest investment in Nvidia's history; although the exact amount remains unspecified, Huang emphasized it would be a 'huge' investment, reflecting strong confidence in OpenAI.
- Funding Goals and Valuation: OpenAI is in discussions to raise as much as $100 billion from various investors, and if successful, this funding round could value OpenAI at $750 billion, making it one of the world's most valuable private companies, highlighting the market's high regard for AI technology.
- Strategic Partnership: Nvidia's 'landmark strategic partnership' with OpenAI will enable the deployment of at least 10 gigawatts of AI data centers using Nvidia's next-generation Vera Rubin graphics processing units (GPUs), which not only strengthens the technical collaboration between the two but also lays a foundation for Nvidia's long-term growth.
- Market Reaction and Investor Concerns: Despite Huang's denial of reports regarding the investment size, investors are worried about the circular nature of AI deals, believing such relationships may artificially boost demand; Nvidia's early investment in OpenAI could yield substantial returns, yet uncertainties in the market persist.
See More
Nvidia Plans to Join OpenAI's Funding Round
- Investment Scale Anticipation: Nvidia CEO Jensen Huang announced at an event in Taipei that the company will participate in OpenAI's latest funding round, potentially making it “the largest investment we've ever made,” although the exact amount remains unspecified, indicating Nvidia's strong confidence in the AI sector.
- Strategic Partnership Deepening: The collaboration between Nvidia and OpenAI is intensifying, as highlighted by their earlier strategic partnership agreement, where OpenAI will utilize Nvidia's next-generation Vera Rubin GPUs to build at least 10 gigawatts of AI data centers, with Nvidia expected to invest up to $100 billion, further solidifying its leadership in the AI market.
- Market Reaction Concerns: Despite Huang dismissing concerns about the investment size as “nonsense,” the market is wary of the circular investment relationship between Nvidia and OpenAI, fearing that such agreements may artificially inflate demand and impact investor confidence.
- IPO Prospects Generate Excitement: OpenAI is reportedly planning an initial public offering (IPO) later this year, and as an early investor, Nvidia's stake in OpenAI could yield substantial returns, although uncertainties about the startup's future success remain a concern for investors.
See More
CoreWeave Securities Class Action Reminder
- Class Action Notice: Rosen Law Firm reminds investors who purchased CoreWeave securities between March 28 and December 15, 2025, to apply as lead plaintiffs by March 13, 2026, to potentially receive compensation without any out-of-pocket costs.
- Lawsuit Background: The lawsuit alleges that CoreWeave made false and misleading statements during the class period, overstating its ability to meet customer demand and underestimating the risks associated with reliance on a single third-party data center, which could materially impact the company's revenue.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, having achieved the largest securities class action settlement against a Chinese company in 2017, highlighting its strong track record in this field.
- Investor Guidance: Investors are advised to select qualified counsel with proven leadership experience, as many firms issuing notices may lack the necessary expertise and resources, ensuring that their rights are effectively protected.
See More
