CoreWeave Stock Falls 14% on Meta Cloud Plans; Rosenblatt Sees Buying Opportunity With $250 Price Target

Shares of CoreWeave Inc. (CRWV) declined 14% on Wednesday, marking their worst single-day fall in more than four months, amid reports that Meta Platforms Inc. (META) is developing a cloud computing business to sell excess AI compute capacity to external customers.

Analysts remain confident in CoreWeave's business. According to TheFly, Rosenblatt said channel checks show no change in hyperscalers' demand for GPU computing capacity and noted that Meta does not have the right to resell CoreWeave capacity it leased through 2032 to third parties. Rosenblatt reiterated its Buy rating with a $250 price target, implying 192% upside potential from Wednesday's close. Roth Capital analyst Rohit Kulkarni concurred, stating the market reaction was overdone given that Meta's plans remain unconfirmed and would be constrained by available GPU capacity.