Insiders Celebrated the New Year by Selling These Stocks: Caution to Buyers
Insider Selling Trends: Significant insider selling has been observed in companies like Core Weaver, Urban Outfitters, and Kratos Defense & Security Solutions, raising concerns about potential market pressures in 2026.
Market Dynamics: The selling activity aligns with technical market tops, which could lead to price pullbacks and create buying opportunities for investors despite current near-term pressures.
Institutional Activity: Institutions hold about 50% of shares in Core Weaver, indicating strong institutional support, while insiders have been selling, creating a complex market dynamic.
Analyst Sentiment: Analysts maintain a bullish outlook with price targets suggesting potential upside, despite mixed sentiment and the risk of volatility due to insider selling and profit-taking by short-term owners.
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- Brand Vision Update: CoreWeave launches its campaign “Ready for Anything, Ready for AI,” aimed at attracting investors and innovators by emphasizing its critical role in transitioning the AI industry from experimentation to large-scale production.
- Technology Advantage Showcase: The campaign highlights how CoreWeave's purpose-built technology supports innovators in realizing bold ideas, reinforcing its unique position as a leader in AI cloud services and infrastructure.
- Market Expansion Strategy: Through this campaign, CoreWeave integrates its brand narrative, particularly after acquiring Weights & Biases, OpenPipe, and Monolith, showcasing its rapid growth capabilities and market adaptability, thereby enhancing customer trust.
- Future Development Positioning: CMO Jean English states that this campaign lays the foundation for CoreWeave's brand, aiming to grow alongside future AI developments, emphasizing the importance of performance, scale, and durability in the AI industry.
- Market Performance of AI Stocks: In recent years, AI stocks have driven the S&P 500 to three consecutive years of gains, with companies like Nvidia and Palantir reporting double and triple-digit revenue growth, showcasing the revolutionary potential of AI technology across various sectors.
- Valuation Concerns Intensify: Despite strong performance, the S&P 500 Shiller CAPE ratio has reached historical highs, raising investor concerns about a potential AI bubble, leading some to rotate out of AI and tech stocks.
- Sustained Demand: Chip manufacturers like Taiwan Semiconductor and AMD reported double-digit revenue growth, indicating strong demand for AI products, particularly as TSMC's close collaboration with cloud providers offers clear insights into market demand.
- Long-Term Investment Opportunity: Although AI stocks have recently declined, analysts suggest this could represent a once-in-a-decade buying opportunity, especially as AI technology remains in its early stages, with significant future applications in robotics, drug discovery, and autonomous vehicles.
- Tech Stock Retreat: Recent declines in tech stocks, particularly AI names like Nvidia and Palantir, stem from investor concerns over valuations and the potential impact of AI on software businesses, indicating a cautious market sentiment.
- AI Market Potential: Despite risks, AI technology is viewed as a key driver for future growth, with companies like Taiwan Semiconductor and AMD reporting double-digit revenue gains, suggesting strong demand for AI products and the likelihood of increased investment.
- Investor Sentiment Shift: The S&P 500 Shiller CAPE ratio has reached historical highs, raising fears of an AI bubble and leading to declines in certain software and AI stocks, reflecting skepticism about sustained growth.
- Long-Term Investment Opportunity: Although tech stocks are experiencing short-term pullbacks, analysts believe this could represent a once-in-a-decade buying opportunity, especially as AI technology is still in its early stages of real-world application, indicating significant growth potential ahead.
- Significant Revenue Growth: CoreWeave's revenue skyrocketed from $16 million in 2022 to $1.9 billion in 2024, with projections of reaching $5.1 billion in 2025, showcasing its strong growth potential in the AI market.
- Data Center Expansion: The company expanded from three data centers at the end of 2022 to 33, leveraging dedicated GPUs to process AI tasks 35 times faster and 80% cheaper than larger cloud platforms, significantly enhancing its competitive edge.
- Capital Strategy: CoreWeave secured additional financing by leveraging GPUs as collateral and invested $100 million in Nvidia's H100 data center GPUs in 2022, further driving its infrastructure expansion.
- Optimistic Future Outlook: Despite risks from a 70% revenue dependency on Microsoft and potential debt increases, analysts expect its market cap to double to $98 billion by 2027, reflecting confidence in its long-term growth trajectory.
- Class Action Initiated: Bronstein, Gewirtz & Grossman LLC has filed a class action lawsuit against CoreWeave, alleging violations of federal securities laws from March 28 to December 15, 2025, seeking to recover losses for investors, highlighting significant investor dissatisfaction with the company's transparency.
- False Statement Allegations: The complaint accuses CoreWeave executives of making materially false and misleading statements during the class period, particularly overstating the company's ability to meet customer demand, which could lead to a significant negative impact on revenue, indicating serious governance and risk management flaws.
- Investor Rights Protection: Affected investors are encouraged to apply to be lead plaintiffs by March 13, 2026, demonstrating a strong commitment to actively protect their rights in the legal process, which may influence the company's future stock performance.
- Law Firm Background: Bronstein, Gewirtz & Grossman LLC is renowned for recovering hundreds of millions for investors, emphasizing its expertise in securities fraud class actions, which may bolster investor confidence in the case.
- Class Action Reminder: The Schall Law Firm alerts investors of a class action lawsuit against CoreWeave for securities violations, involving trades from March 28 to December 15, 2025, with a deadline to contact the firm by March 13, 2026, to participate.
- False Statements Allegation: The complaint alleges that CoreWeave made false and misleading statements to the market, claiming it could meet customer demand while downplaying the risks of relying on a single third-party vendor, resulting in investor losses.
- Failed Acquisition Impact: CoreWeave's unsuccessful acquisition of Core Scientific and delays in bringing data centers online, coupled with media reports, revealed the truth about its operations, exacerbating investor damages.
- Legal Consultation Opportunity: The Schall Law Firm offers free consultations, encouraging affected investors to reach out to discuss their rights, noting that the class has not yet been certified, meaning investors are not represented by an attorney during this period.











