Buying CoreWeave Stock Through ETFs: ARK Next Generation Internet ETF and YieldMax AI & Tech Portfolio Option Income ETF

CoreWeave stock (CRWV) has dropped 38% since Q2 earnings, despite 207% YoY revenue growth and a record $30.1 billion backlog. The decline is attributed to soaring expenses and the IPO lock-up period expiration. Investors can consider ARK Next Generation Internet ETF (ARKW) and YieldMax AI & Tech Portfolio Option Income ETF (GPTY) to gain exposure to CRWV without the risk of holding the stock directly.

CoreWeave's stock (CRWV) has experienced a significant downturn, falling by 38% since the company's Q2 earnings release on August 11. Despite a robust 207% year-over-year (YoY) revenue growth and a record $30.1 billion backlog, the decline can be attributed to escalating expenses and the expiration of the company's initial public offering (IPO) lock-up period [1].

The Q2 2025 earnings report revealed a $290.5 million net loss and $8 billion in debt, raising concerns about CoreWeave's financial sustainability. The company's aggressive expansion strategy, including a $9 billion acquisition of Core Scientific, has added to its debt load and operational challenges. The lock-up expiration, which allows 83% of shares to be traded, has exacerbated market volatility and investor uncertainty [1].

Investors seeking exposure to CoreWeave without the direct risk of holding the stock can consider exchange-traded funds (ETFs) that offer diversified exposure. Two notable ETFs include ARK Next Generation Internet ETF (ARKW) and YieldMax AI & Tech Portfolio Option Income ETF (GPTY) [2]. These ETFs provide indirect investment in CoreWeave, reducing individual stock risk and offering liquidity and transparency.

ARKW, managed by Cathie Wood's ARK Invest, focuses on big innovations like AI, blockchain, and cloud computing. CoreWeave constitutes 1.56% of ARKW's total holdings, with an expense ratio of 0.82% and a three-month return of 33.4% [2]. GPTY, an actively managed fund investing in top AI and tech companies, includes CoreWeave at 4.39% of its holdings, with an expense ratio of 0.99% and a three-month return of 6.09% [2].

Both ETFs offer a way for investors to participate in the AI infrastructure sector while mitigating the risks associated with holding individual stocks. Investors should monitor short-term volatility and assess CoreWeave's fundamentals, particularly its ability to manage expenses and reduce debt, as these factors will be crucial to the company's long-term success [1].

References:
[1] https://www.ainvest.com/news/coreweave-post-lock-market-catalyst-navigating-volatility-unlocking-shareholder-2508/
[2] https://www.tipranks.com/news/coreweave-stock-crwv-tumbles-38-post-earnings-heres-how-to-buy-the-dip-without-the-risk