Palantir and CoreWeave Face Analyst Downgrades with Significant Price Targets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Fool
- Palantir Growth Potential: Palantir launched its AI Platform (AIP) in 2023, achieving a 63% revenue growth and a 121% surge in U.S. commercial revenue, yet its current P/E ratio of 268 indicates excessive market expectations for future earnings, with analysts warning of potential demand pullback risks.
- CoreWeave Debt Risks: CoreWeave reported a 134% revenue increase last quarter, but its debt has soared to $14 billion, with interest expenses exceeding $310 million against an adjusted operating income of $217 million, highlighting significant risks in its debt-dependent business model that could lead to greater losses.
- Contract Dependency Issues: CoreWeave's revenue backlog has reached $55.6 billion, but customers may reduce or withdraw contracts, and any supply chain delays could result in lost revenue, with analysts pointing out that this uncertainty could further depress stock prices.
- Market Sentiment Shift: As analysts significantly downgrade price targets for both Palantir and CoreWeave, investor confidence in these stocks wanes, potentially leading to broader market corrections that reflect a reassessment of overly optimistic expectations for tech stocks.
CRWV
$76.355+Infinity%1D
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 149.70 USD with a low forecast of 36.00 USD and a high forecast of 430.00 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
13 Buy
11 Hold
1 Sell
Moderate Buy
Current: 78.870
Low
36.00
Averages
149.70
High
430.00
Current: 78.870
Low
36.00
Averages
149.70
High
430.00
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.
