We recently published 12 Latest Stocks On Jim Cramer’s Radar. CoreWeave, Inc. (NASDAQ:CRWV) is one of the stocks Jim Cramer recently discussed.
CoreWeave, Inc. (NASDAQ:CRWV), the AI computing infrastructure provider, saw its shares fall by a whopping 33% in August after the firm’s second quarter earnings report saw it post a 27-cent loss, which was higher than the 21-cents analysts were expecting. The massive dip, which came just as CoreWeave, Inc. (NASDAQ:CRWV)’s lockup period expired, indicated just how jittery Wall Street is about AI, as the firm had beaten analyst revenue and revenue guidance estimates. Cramer commented on an “undercurrent” driving CoreWeave, Inc. (NASDAQ:CRWV)’s shares:
“And by the way we have not mentioned the undercurrent of what’s really happening on here today, which is the CoreWeave lockup. The expiration of CoreWeave, CoreWeave has absolutely been crushed. And that comes after today. Michael Entrator talking about competitive. But be aware that there’s an undercurrent there and a lot of people were in that stock and they’ve been pulling away. . . I believe that there’s going to be a lot of selling there.”
Previously, Cramer called CoreWeave, Inc. (NASDAQ:CRWV) one of the biggest winners out there:
“How about big winners? Take CoreWeave, one of the biggest winners this year, gigantically from its $40 price in March. Ben Stoto and I told you to buy this one. It had the misfortune of reporting on the eve of Mr. Bullish’s deal. The numbers were nicely better than expected, befitting the boom in data centers. Unfortunately, the stock plummeted more than 20% today. Why? Because the lockup on insider selling expires tomorrow night. Although there are a bunch of short stories out there, trying to say it was a problem with demand. That’s wrong. Demand is on fire. Totally wrong narrative.
Copyright: ralwel / 123RF Stock Photo
What does matter, though, is a ton of stock coming at you. Remember when I said that the underwriters are only bringing small slivers of stock to the market? Tomorrow, a huge chunk of supply loses the restraints and can start selling, and I think that CoreWeave will go lower. And if you want to buy it, buy it after that.”
While we acknowledge the potential of CRWV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
