CoreWeave Shares Drop 8.1% as Morgan Stanley Flags Delays, $99 Target
Shares plunged 8.1% after Morgan Stanley reiterated Equal Weight with a $99 target and warned of execution risks and data center delays ahead of Feb.26 earnings. The bank highlighted legal complaints over service shortfalls and urged CoreWeave to achieve over 850MW active power and outline plans for 5GW more capacity.
1. Morgan Stanley Reiterates Rating
On February 20, Morgan Stanley maintained an Equal Weight rating on CoreWeave and set a $99 price target, sparking an 8.1% share decline as investors absorbed the cautionary stance ahead of the company’s fourth-quarter earnings release.
2. Execution Risks and Data Center Delays
Analyst concerns centered on CoreWeave’s ability to meet its ambitious growth objectives amid reported delays in data center deployments, which could hinder the conversion of projects under construction into revenue-generating operations.
3. Legal Complaints and Investor Skepticism
Recent legal complaints alleging service shortfalls have intensified investor skepticism about CoreWeave’s capacity to fulfill customer commitments, adding to the scrutiny of its operational execution.
4. Growth Milestones and Outlook
Morgan Stanley emphasized that rating improvements will depend on CoreWeave exiting the year with over 850MW of active power, resolving prior data center delays and presenting a credible plan to secure an additional 5GW of capacity.