CoreWeave Is Rebounding, But Insider Selling Threatens Upside

Group 1 - CoreWeave (NASDAQ: CRWV) stock is experiencing a rebound in early 2026, driven by strong demand for cloud infrastructure and services, as well as positive results from competitor Applied Digital (NASDAQ: APLD) [3][5] - The stock has seen significant upside potential, with a peak increase of approximately 350% from its IPO price, although insider selling poses a risk to near-term gains [4][5] - Institutional investors own about 30% of CoreWeave stock and have been accumulating shares since the IPO, while analysts have a consensus Hold rating and have reduced price targets, indicating potential range-bound trading ahead [7][8] Group 2 - Insider selling is critical to CoreWeave's price action, as insiders own around 25% of the stock and have been taking profits, which may limit further price increases [4][5] - The upcoming Q4 earnings report, expected in mid-February, is seen as a potential catalyst for the stock, with analysts having set low expectations that could allow for significant outperformance if the company meets or exceeds them [8] - Execution risks related to capital-intensive data center builds and negative cash flow could cloud the upside potential despite the promising demand dynamics in the cloud infrastructure sector [5][8]