CoreWeave Plummets 4.9% Amid AI Hype and Volatile Options Activity: What’s Fueling the Selloff?

Summary
• CoreWeave (CRWV) trades at $97.74, down 4.9% from its $102.79 close, with a 96.32–101.09 intraday range.
• Cantor Fitzgerald’s recent Overweight rating and $116 price target failed to sustain momentum as Nvidia’s earnings call highlighted CoreWeave’s GB300 model.
• Options volume surges with 20 contracts active, including high-leverage puts and calls.
• The stock’s 52-week high of $187 and low of $33.515 underscore its extreme volatility. CoreWeave’s sharp decline reflects a tug-of-war between AI optimism and execution risks, as Cantor’s bullish stance clashes with near-term profit pressures and sector-wide jitters.

Nvidia’s Endorsement and Cantor’s Bullish Call Ignite Short-Term Volatility
CoreWeave’s selloff follows a mixed bag of catalysts. While Cantor Fitzgerald’s Overweight rating and $116 price target (a 40% premium to its current price) signaled long-term potential, Nvidia’s Q2 earnings call dampened immediate enthusiasm. Nvidia’s CFO highlighted CoreWeave’s GB300 model as a 10x performance leap over H100, but the stock’s sharp intraday drop suggests investors are pricing in near-term risks: capital-intensive data center expansion, customer concentration, and competition from cloud giants. The stock’s 35.96 RSI (oversold) and MACD crossover below the signal line (-8.32 vs. -8.34) indicate a bearish technical bias, compounding concerns.

IT Services Sector Mixed as Amazon Drags Down Momentum
The IT Services sector remains fragmented, with Amazon (AMZN) down 0.94% despite CoreWeave’s AI-driven narrative. While CoreWeave’s focus on AI-specific infrastructure positions it as a niche player, Amazon’s broader cloud dominance and recent earnings caution (AWS’s $10B AI data center investment) highlight divergent strategies. CoreWeave’s 52-week high of $187 contrasts with Amazon’s $188.50 52-week high, but its -39.45 P/E ratio versus Amazon’s profitability underscores its speculative nature.

Options and ETFs for Navigating CoreWeave’s Volatility
• Technical Indicators:
- RSI: 35.96 (oversold)
- MACD: -8.32 (bearish)
- Bollinger Bands: Price near lower band ($73.38–$140.43)
- 30D MA: $110.45 (above current price)
- 30D Support: $90.80–$91.95
• Trading Setup: CoreWeave’s 4.9% drop has pushed it toward key support at $91.95. A break below $90.80 could trigger a test of the 52-week low ($33.52). Short-term bulls may target a rebound above $101.09 (intraday high), while bears eye $91.95 as a critical level. No leveraged ETF data is available, but options offer high-leverage exposure.
• Top Options:
- CRWV20250905P95 (Put):
- Strike: $95, Expiry: 2025-09-05
- IV: 60.57% (moderate), Leverage: 47.66%, Delta: -0.336, Theta: -0.0158 (slow decay), Gamma: 0.0414 (high sensitivity)
- Payoff: At 5% downside (ST = $92.85), payoff = $92.85 - $95 = $0 (breakeven at $95).
- Why: High leverage and gamma make this put ideal for a bearish move below $95.
- CRWV20250905P96 (Put):
- Strike: $96, Expiry: 2025-09-05
- IV: 68.82% (high), Leverage: 33.74%, Delta: -0.389, Theta: -0.0228 (moderate decay), Gamma: 0.0383 (high sensitivity)
- Payoff: At 5% downside (ST = $92.85), payoff = $92.85 - $96 = $0 (breakeven at $96).
- Why: Strong IV and leverage position this as a high-reward put for a sharp drop.
• Action: Aggressive bears may consider CRWV20250905P95 into a breakdown below $91.95.

Backtest CoreWeave Stock Performance
Below is an interactive report summarising the back-test you requested. (It may take a second to load; if you don’t see it, please make sure your network allows content from cdn.ainvest.com.)Key take-aways (auto-filled defaults explained):• Data period 2017-01-01 – 2025-08-29 was selected to cover CRWV’s full trading history. • Positions were auto-closed after 5 trading days (max_holding_days = 5) because no explicit exit rule was given. • Trades were executed at the next day’s open price, reflecting an implementable “day-after” strategy. Feel free to ask for parameter tweaks (e.g., different holding horizon, stop-loss / take-profit rules, or alternative event thresholds).

CoreWeave at a Crossroads: Watch $91.95 and Cantor’s Thesis
CoreWeave’s 4.9% drop has brought it to a critical juncture. While Cantor Fitzgerald’s $116 price target and Nvidia’s endorsement highlight long-term AI potential, near-term execution risks—capital intensity, customer concentration, and sector competition—loom large. Investors should monitor the $91.95 support level and Cantor’s thesis for validation. Amazon’s -0.94% decline in the IT Services sector adds macro uncertainty. For now, short-term volatility is likely to persist, with options like CRWV20250905P95 offering high-leverage exposure to a potential breakdown. Watch for $91.95 breakdown or Cantor’s thesis validation.