We recently published 10 Stock Winners Shocking Wall Street. CoreWeave Inc. (NASDAQ:CRWV) was one of the top performers last week. CoreWeave surged by 26.3 percent week-on-week to claw back to the $101 level—a two-month high—as investors loaded positions in stocks riding the artificial intelligence wave, buoyed by a semiconductor giant’s strong earnings performance last year and news that it would increase its capital expenditures (capex) for 2026. In its earnings call last week, semiconductor giant Tai ...

Core Investment Thesis - The article highlights the potential of three tech stocks—SoundHound AI, Lemonade, and CoreWeave—as promising investment opportunities in the context of the growing artificial intelligence (AI) market, suggesting they may offer more growth potential than volatile cryptocurrencies [1][2]. SoundHound AI - SoundHound AI specializes in AI-powered voice and audio recognition tools, generating most of its revenue from its developer-oriented platform, Houndify, which allows for customized voice recognition applications across various industries [3][5]. - The company has a market capitalization of $4.7 billion, with a current stock price of $11.12, and analysts project a revenue growth rate of 30% CAGR from 2025 to 2027, with adjusted EBITDA expected to turn positive in the final year [4][6]. - SoundHound is expanding its market presence through acquisitions and serves notable clients like Stellantis, Chipotle, and Mastercard, which positions it well in the growing voice recognition services market [5][6]. Lemonade - Lemonade offers a range of insurance products, including homeowners, renters, and pet insurance, and is particularly appealing to younger customers due to its AI-powered app that simplifies the insurance buying process [7][9]. - The company has a market capitalization of $5.9 billion and a current stock price of $79.41, with its customer base expected to grow from 1 million to 2.87 million between the end of 2020 and Q3 2025 [8][9]. - Analysts forecast a revenue and adjusted EBITDA growth rate of 44% CAGR from 2025 to 2027, driven by the expansion of its pet and auto insurance segments and the introduction of more AI features [9][10]. CoreWeave - CoreWeave transitioned from Ethereum mining to providing cloud-based GPU services for AI and machine learning tasks, significantly expanding its data center operations from three to 33 since the end of 2022 [11][12]. - The company has a market capitalization of $50 billion, with a current stock price of $101.23, and claims its GPUs can process AI tasks 35 times faster and 80% more cost-effectively than competitors [12][13]. - Analysts predict a remarkable revenue growth rate of 95% CAGR and adjusted EBITDA growth of 109% CAGR from 2025 to 2027, as it secures more clients, including major players like Microsoft and OpenAI [12][13].

Core Points - A securities class action lawsuit has been filed against CoreWeave, Inc. and certain executives, representing investors who acquired CoreWeave securities between March 28, 2025, and December 15, 2025 [1] - The lawsuit is a response to delays from a third-party data center developer, which has negatively impacted CoreWeave's share price [2] - Hagens Berman, a national shareholder rights firm, is investigating claims that CoreWeave misled investors, urging those who suffered losses to come forward [3] Company Performance and Allegations - The complaint centers on CoreWeave's statements regarding its ability to meet high demand for its services and recognize revenue from long-term contracts [4] - Allegations include that CoreWeave overstated its capacity to meet customer demand and downplayed risks associated with reliance on a single third-party data center supplier [5] - Following a disappointing Q3 2025 financial report and a reduction in revenue guidance, CoreWeave's share price fell by $36.11, a decrease of 34%, resulting in a loss of approximately $14 billion in market capitalization [6] Investigation and Whistleblower Information - Hagens Berman is investigating whether CoreWeave intentionally misled investors about its business prospects [7] - The firm encourages individuals with non-public information regarding CoreWeave to consider participating in the investigation or the SEC Whistleblower program [7]

Core Points - Rosen Law Firm has announced a class action lawsuit on behalf of purchasers of CoreWeave, Inc. securities between March 28, 2025, and December 15, 2025 [1] - Investors who purchased CoreWeave securities during the class period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2] - A lead plaintiff must move the Court by March 13, 2026, to represent other class members in the litigation [3] Details of the Case - The lawsuit alleges that defendants made false and misleading statements regarding CoreWeave's ability to meet customer demand and understated risks associated with reliance on a single third-party data center supplier [5] - It is claimed that these misstatements were likely to have a material negative impact on CoreWeave's revenue, leading to damages for investors when the truth was revealed [5] Legal Representation - Investors are encouraged to select qualified counsel with a successful track record in securities class actions, as Rosen Law Firm has achieved significant settlements and recognition in this field [4]

Core Points - The CoreWeave class action lawsuit has been initiated against CoreWeave, Inc. and its executives for alleged violations of the Securities Exchange Act of 1934 during the class period from March 28, 2025, to December 15, 2025 [1] - CoreWeave is accused of overstating its ability to meet customer demand and failing to disclose significant risks associated with its reliance on a single third-party data center supplier [3] - The lawsuit highlights a deal worth up to $11.9 billion with OpenAI and a merger agreement with Core Scientific, which was later terminated due to insufficient shareholder votes [2][4] Allegations and Impact - On October 30, 2025, Core Scientific announced it could not secure enough votes for its merger with CoreWeave, leading to a more than 6% drop in CoreWeave's share price [4] - On November 10, 2025, CoreWeave lowered its revenue guidance due to delays from a third-party data center developer, resulting in a subsequent 16% decline in share price [5] - A December 15, 2025 article from The Wall Street Journal revealed that data center delivery issues were more severe than previously acknowledged, causing an additional 3.4% drop in share price [6] Legal Process - Investors who purchased CoreWeave securities during the class period can seek appointment as lead plaintiff in the class action lawsuit, representing the interests of all class members [7] - The lead plaintiff has the authority to select a law firm for litigation, and participation as lead plaintiff does not affect the ability to share in any potential recovery [8] About the Law Firm - Robbins Geller Rudman & Dowd LLP is a leading law firm specializing in securities fraud and shareholder litigation, having secured over $2.5 billion for investors in 2024 alone [9]

Core Points - A class action lawsuit has been filed against CoreWeave, Inc. and certain senior executives for securities fraud following significant stock drops due to potential violations of federal securities laws [1][3] - Investors are encouraged to seek additional information regarding the lawsuit and their legal options [2][9] Company Overview - CoreWeave is an AI-focused cloud computing company that operates data centers providing high-performance GPU infrastructure [4] - The company relies on partnerships, including a merger agreement with Core Scientific announced on July 7, 2025 [4] Allegations and Stock Performance - CoreWeave allegedly overstated its ability to meet customer demand and concealed significant construction delays at its data centers [5] - The stock price dropped significantly due to various announcements: - On October 30, 2025, the stock fell by $8.87 (over 6%) after Core Scientific failed to secure enough shareholder votes for the merger, dropping from $139.93 to $131.06 [6] - On November 10, 2025, the stock dropped by $17.22 (over 16%) after CoreWeave lowered its guidance for revenue and capacity due to delays, falling from $105.61 to $88.39 [7] - On December 15, 2025, the stock decreased by $2.85 (over 3%) following reports of further delays in a major data center project, dropping from $72.35 to $69.50 [8]

CoreWeave, Inc. ( CRWV ) is a name that really started to receive a lot of attention in 2025. The debate on whether to buy or sell the stock has been quite fierce, and students of the marketAnalyst’s Disclosure:I/we have a beneficial long position in the shares of CRWV, META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with a ...

Core Viewpoint - A class action lawsuit has been filed against CoreWeave, Inc. and its senior executives for securities fraud following significant stock drops attributed to potential violations of federal securities laws [1][3]. Company Overview - CoreWeave is an AI-focused cloud computing company that operates data centers providing high-performance GPU infrastructure, relying on partners like Core Scientific for development [4]. Allegations of Securities Fraud - The lawsuit claims that CoreWeave misrepresented its ability to meet customer demand and concealed construction delays at its data centers, despite assurances of being able to capitalize on strong demand [5]. Stock Performance and Impact - On October 30, 2025, CoreWeave's stock dropped by $8.87 (over 6%) after the termination of a merger agreement with Core Scientific due to insufficient shareholder votes, falling from $139.93 to $131.06 per share [6]. - Following a revenue guidance reduction on November 10, 2025, due to delays from a third-party developer, the stock fell by $17.22 (over 16%), from $105.61 to $88.39 per share [7]. - A report on December 15, 2025, regarding delays in a major data center project led to an additional drop of $2.85 (over 3%), from $72.35 to $69.50 per share [8].

Core Viewpoint - The AI sector is experiencing significant valuation increases and infrastructure spending, raising concerns about a potential bubble reminiscent of the year 2000 [1][14] Oracle - Oracle's reliance on OpenAI is seen as a liability rather than an asset, with the company heavily investing in AI and increasing capital expenditures by 200% year-over-year, now projected at $50 billion for fiscal 2026 [3][6] - The company raised $18 billion in a bond sale, indicating aggressive borrowing to fund its AI initiatives, with credit default swaps tripling in price, reflecting increased risk [4][5] - OpenAI's commitment to spend $300 billion over five years on Oracle's services raises concerns, as OpenAI remains unprofitable and will need to secure substantial capital to meet its obligations [6][7] CoreWeave - CoreWeave has tripled its revenue in the past year but is heavily leveraged, carrying about $15 billion in debt, which is nearly four times its total revenue [8][9] - The company's interest expenses have surged by nearly 200% year-over-year, now exceeding a fifth of its total revenue and approximately six times its gross profit [9] - CoreWeave's customer base is highly concentrated, primarily relying on a few major clients like Microsoft, which poses risks if demand for AI processing power declines [10][11] - Although CoreWeave has a $6.3 billion backstop agreement with Nvidia, it may not be sufficient if AI demand cools significantly [12]

Core Points - The CoreWeave class action lawsuit has been initiated against CoreWeave, Inc. and its executives for alleged violations of the Securities Exchange Act of 1934 during the class period from March 28, 2025, to December 15, 2025 [1][3] - CoreWeave is accused of overstating its ability to meet customer demand and failing to disclose significant risks associated with its reliance on a single third-party data center supplier [3][4] - The lawsuit highlights a significant deal worth up to $11.9 billion with OpenAI announced shortly before CoreWeave's IPO, and a subsequent all-stock acquisition agreement with Core Scientific, which was later terminated due to insufficient shareholder votes [2][4] Allegations and Impact - Allegations include that CoreWeave's executives made misleading statements regarding the company's operational capabilities and the risks posed by its data center supplier, which were likely to negatively impact revenue [3][5] - Following the announcement of lower revenue guidance due to delays from a third-party data center developer, CoreWeave's stock price fell by over 16% [5] - A Wall Street Journal article revealed that delays were more severe than previously acknowledged, leading to an additional 3.4% drop in CoreWeave's stock price [6] Legal Process - Investors who purchased CoreWeave securities during the class period can seek appointment as lead plaintiff in the class action lawsuit, which allows them to represent the interests of all class members [7][8] - The lead plaintiff can select a law firm to litigate the case, and participation as lead plaintiff is not required to share in any potential recovery [8] About the Law Firm - Robbins Geller Rudman & Dowd LLP is a leading law firm specializing in securities fraud and shareholder litigation, having secured over $2.5 billion for investors in 2024 alone [9]