CoreWeave (CRWV) faces a 75% price target cut from HSBC analyst Abhishek Shukla, sparking a 6% intraday drop. The AI infrastructure company has surged 240% since its IPO, driven by OpenAI and Microsoft partnerships, but faces high costs and customer concentration concerns. With a market cap near $60 billion, CoreWeave has seen a roller-coaster ride on the stock market, hitting highs of $187 before a 30% correction. The company carries high valuation multiples, with a price-sales ratio of 21.5x and a price-book ratio of 28.1x, raising concerns about earnings and its capital-intensive business model. Despite revenue growth of 420% in Q1 2025, CoreWeave’s GAAP net loss widened to $314.6 million, with an operating loss of $27.5 million due to heavy stock-based compensation. Promoting new infrastructure installations and GPU support, CoreWeave faces future funding concerns that make investors wary. With a “Hold” rating consensus, CoreWeave’s average analyst target of $90.58 suggests a 30% downside, with the lowest target at $32 and the highest at $185, indicating extreme disagreement over the company’s valuation and direction.

Read more at Yahoo Finance: This Analyst Warns CoreWeave Could Plunge 70% From Here