CoreWeave (CRWV) Stock Pulls Back From All-Time High: What's Going On?

by Henry Khederian Benzinga Staff Writer

Zinger Key Points

CoreWeave shares have surged in recent weeks due to a major infrastructure deal and strong AI demand.
However, the stock fell sharply Thursday as investors potentially decided to take profits.
Live on Wednesday June 18: 3 Summer "Power Patterns" Are About to Trigger (One With 90% Win Rate). See Them Here.

CoreWeave Inc CRWV shares are trading sharply lower Thursday despite a lack of company-specific news. Here’s what investors need to know.

What To Know: This week’s surge in CoreWeave shares was fueled by a major infrastructure deal announced Monday with Applied Digital Corp. The companies signed two 15-year lease agreements granting CoreWeave access to 250 megawatts (MW) of critical IT capacity at a North Dakota data center.

The agreement includes an option to expand by an additional 150 MW, potentially reaching 400 MW. Applied Digital expects approximately $7 billion in revenue from the deal.

Investor excitement around the partnership, combined with rising demand for AI computing and Nvidia Corp’s recent strong earnings, as Nvidia is a key CoreWeave supplier, helped drive recent gains. However, Thursday’s pullback appears to be driven by profit-taking amid the stock’s recent, strong run.

Despite Thursday’s dip, CoreWeave remains at the center of the AI infrastructure boom, and investor sentiment in the sector remains strong as demand for high-performance computing continues to surge.

Price Action: CRWV is down 9.2% to $148.10 on Thursday, pulling back after a meteoric rise that saw the AI infrastructure company soar over 180% in the past month. Despite the sharp decline, the stock remains up roughly 32% over the past week and has hit multiple all-time highs this week.

How To Buy CRWV Stock

By now you're likely curious about how to participate in the market for CoreWeave – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of CoreWeave, which is trading at $145.2 as of publishing time, $100 would buy you 0.69 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, CRWV has a 52-week high of $166.63 and a 52-week low of $33.52.

Image: Shutterstock