Cathie Wood's Purchase Boosts CoreWeave Amidst Wall Street Cautiousness

Cathie Wood purchased 120,229 shares of CoreWeave stock via ARK Next Generation Internet ETF, while Wall Street remains cautious due to high leverage and significant capex. Despite the recent pullback, CRWV stock has risen about 150% from its IPO price of $40. Analysts are cautious, with Bank of America Securities lowering the price target to $168 from $185 and Morgan Stanley maintaining a Hold rating with a price target of $91.

Cathie Wood's ARK Next Generation Internet ETF (ARKW) has significantly increased its stake in CoreWeave Inc. (CRWV), a move that reflects the fund's confidence in the company's innovative cloud and computing solutions. On August 15, 2025, ARKW purchased 120,229 shares of CoreWeave, valued at $11,963,987 [1].

Despite this bullish stance from ARK, Wall Street analysts remain cautious. Bank of America Securities recently lowered its target price for CoreWeave from $185 to $168, maintaining a neutral rating with a potential upside of 38.35% [2]. Morgan Stanley maintains a Hold rating with a price target of $91, reflecting a more conservative outlook. The stock has experienced a notable pullback, falling 18.4% to approximately $121.43 after trading at $187.00 earlier in the year.

CoreWeave's recent earnings report showed a significant increase in revenue, up 206.7% year-over-year, but the EPS missed analysts' expectations by $0.07 [2]. The company's high leverage and significant capital expenditures have raised concerns among investors and analysts, contributing to the cautious stance.

ARK's investment in CoreWeave aligns with its strategy of focusing on disruptive innovation within the tech sector. The fund's consistent investment pattern in companies like Roblox, CRISPR Therapeutics, and CoreWeave suggests a bullish outlook on their long-term growth potential. However, the recent market pullback and analyst caution indicate that investors should closely monitor CoreWeave's performance and financial health.

References:
[1] https://www.investing.com/news/company-news/cathie-woods-ark-etf-focuses-on-roblox-and-coreweave-stock-buys-93CH-4196391
[2] https://www.marketbeat.com/instant-alerts/bank-of-america-has-lowered-expectations-for-coreweave-nasdaqcrwv-stock-price-2025-08-13/