Morgan Stanley Cautions About Increasing Risks in Software Lending
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 10 2026
0mins
Should l Buy CRWV?
Source: Barron's
S&P Software Index Decline: The S&P Software Index has experienced a significant decline of 22% this year due to the impact of AI.
Software Loan Price Stability: Despite the drop in the software index, the price of software loans has only decreased by approximately 3%.
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Analyst Views on CRWV
Wall Street analysts forecast CRWV stock price to rise
25 Analyst Rating
12 Buy
13 Hold
0 Sell
Moderate Buy
Current: 78.050
Low
68.00
Averages
123.23
High
180.00
Current: 78.050
Low
68.00
Averages
123.23
High
180.00
About CRWV
CoreWeave, Inc. is a cloud infrastructure technology company. The Company offers the CoreWeave Cloud Platform, which consists of software and cloud services that deliver the automation and efficiency needed to manage complex artificial intelligence (AI) infrastructure. Its CoreWeave Cloud Platform is an integrated solution that is purpose-built for running AI workloads such as model training and inference. Its solutions include infrastructure services, managed software services, and application software services. Its Infrastructure Services provide its customers with access to advanced graphics processing unit (GPU) and central processing unit (CPU) compute, highly performant networking, and storage. Its Managed Software Services include CKS, a flexible virtual private cloud and a bare metal service that runs kubernetes directly on high-performance servers. Its Application Software Services build on top of its infrastructure and managed software services, integrating additional tools.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CoreWeave Reports Q4 Loss Nearly Double Estimates Amid Legal Scrutiny
- Financial Disappointment: CoreWeave reported a Q4 2025 net loss of $452 million, or $0.89 per share, nearly doubling the expected loss of $0.49 per share, indicating significant operational failures in scaling high-performance computing clusters, which may lead to diminished investor confidence.
- Weak Revenue Guidance: The company provided a Q1 2026 revenue guidance of $1.9 billion to $2.0 billion, significantly below the $2.3 billion consensus, reflecting a lack of business growth that could impact future financing capabilities and market competitiveness.
- Legal Risks: Hagens Berman is investigating whether CoreWeave and its executives overstated scaling capabilities and concealed critical delays, with the ongoing securities class action potentially exposing the company to greater legal and financial risks, further undermining shareholder confidence.
- Stock Plunge: Following the disappointing results, CoreWeave's shares plummeted nearly 20%, reflecting market concerns over the company's financial health and potentially affecting its future financing and investor relations.
See More
Class Action Lawsuits Filed for Multiple Companies
- CoreWeave Lawsuit: Shareholders of CoreWeave, Inc. have filed a class action lawsuit due to false statements made between March 28 and December 15, 2025, alleging that the company overstated its ability to meet customer demand, which could materially impact revenue and lead to investor losses.
- Bath & Body Works Issues: Shareholders of Bath & Body Works, Inc. have initiated a lawsuit for the period from June 4, 2024, to November 19, 2025, claiming the company failed to disclose that its growth strategy was not attracting customers, potentially leading to an inability to meet financial guidance and misleading investors about the company's prospects.
- Smart Digital Group Risks: Smart Digital Group Limited shareholders have filed a lawsuit for false statements made between May 5 and September 26, 2025, alleging the company did not disclose risks related to market manipulation and fraud, putting its securities at unique risk of trading suspension, with investor losses exceeding $1 million.
- Legal Consultation Advice: The Law Offices of Frank R. Cruz remind investors that those suffering losses during the specified periods can contact the firm to understand their legal rights and ensure their interests are protected in the class actions.
See More
Citi Lowers CoreWeave Financial Estimates Following Q4 Results
- Financial Estimate Revision: Citi Research has lowered its full-year 2026 earnings per share estimate for CoreWeave from $0.75 to -$2.97 following the company's fourth-quarter results, indicating a significant mismatch between revenue timing and expenses that could undermine investor confidence.
- Stock Price Volatility: CoreWeave shares fell 7% in early trading on Tuesday and have declined approximately 28% since the financial results were reported on February 26, reflecting increasing market concerns about the company's future performance.
- Revenue and Profit Adjustments: Citi analysts have aligned their first-quarter 2026 revenue and operating income estimates with guidance, suggesting that despite a disappointing fourth quarter, there is a likelihood of exceeding expectations in upcoming quarters.
- Price Target Reduction: Citi has reduced its price target for CoreWeave from $135 to $126, reflecting a cautious outlook on the company's future profitability, which may influence investor buying decisions.
See More
Latest Wall Street Ratings Analysis
- Ormat Technologies Rating: RBC initiates coverage on Ormat Technologies with an Outperform rating and a $130 price target, indicating the geothermal company is well-positioned for market share gains, highlighting its potential in the renewable energy sector.
- Palantir Data Platform: Rosenblatt reiterates Palantir as a Buy, raising the price target from $150 to $200, emphasizing the platform's value amid the Middle East conflict, which suggests strong demand in the data analytics market.
- Varonis Data Security: Wells Fargo rates Varonis as Overweight, asserting that its best-in-class technology is set to capture increasing enterprise demand for data security as AI adoption and SaaS transitions accelerate, positioning the company for significant growth.
- Netflix Future Outlook: Oppenheimer maintains Netflix as Outperform with a $125 target, noting that the absence of the WBD acquisition makes its outlook more predictable, and the resumption of share repurchases will enhance its competitive position in the market.
See More
CoreWeave Faces Class Action for Securities Fraud
- Lawsuit Background: Leading securities law firm Bleichmar Fonti & Auld LLP has filed a class action lawsuit against CoreWeave and its executives for securities fraud following significant stock drops, urging investors to seek further information to protect their rights.
- Stock Volatility: CoreWeave's stock plummeted over 16% on November 11, 2025, due to the company's failure to meet customer demand and significant construction delays at its data centers, indicating a substantial loss of market confidence.
- Merger Agreement Termination: On October 30, 2025, Core Scientific failed to secure enough shareholder votes to approve the merger, causing CoreWeave's stock to drop more than 6% in a single day, from $139.93 to $131.06, reflecting the negative impact of the merger failure on the company's outlook.
- Legal Implications: Investors have until March 13, 2026, to apply to lead the case, with the lawsuit invoking Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, highlighting significant legal compliance challenges facing the company.
See More
CoreWeave Accused of Misleading Investors in Class Action
- Lawsuit Background: Robbins LLP reminds shareholders that a class action has been filed on behalf of investors who purchased CoreWeave (NASDAQ: CRWV) securities between March 28, 2025, and December 15, 2025, alleging the company misled investors about its ability to meet customer demand.
- False Statement Allegations: The complaint alleges that CoreWeave overstated its capacity to meet customer demand and failed to adequately disclose the risks associated with its reliance on a single third-party data center supplier, which could materially impact the company's revenue.
- Stock Price Volatility: Following a series of disclosures revealing the truth, CoreWeave's stock price plummeted from a high of $183.58 on June 20, 2025, to $69.50 on December 16, 2025, indicating market concerns regarding the company's financial health.
- Shareholder Action Advice: Shareholders are advised to submit their papers by March 13, 2026, to serve as lead plaintiffs in the class action, while those who choose not to participate can remain absent class members eligible for recovery.
See More
CoreWeave Reports Q4 Loss Nearly Double Estimates Amid Legal Scrutiny
- Financial Disappointment: CoreWeave reported a Q4 2025 net loss of $452 million, or $0.89 per share, nearly doubling the expected loss of $0.49 per share, indicating significant operational failures in scaling high-performance computing clusters, which may lead to diminished investor confidence.
- Weak Revenue Guidance: The company provided a Q1 2026 revenue guidance of $1.9 billion to $2.0 billion, significantly below the $2.3 billion consensus, reflecting a lack of business growth that could impact future financing capabilities and market competitiveness.
- Legal Risks: Hagens Berman is investigating whether CoreWeave and its executives overstated scaling capabilities and concealed critical delays, with the ongoing securities class action potentially exposing the company to greater legal and financial risks, further undermining shareholder confidence.
- Stock Plunge: Following the disappointing results, CoreWeave's shares plummeted nearly 20%, reflecting market concerns over the company's financial health and potentially affecting its future financing and investor relations.
See More
Class Action Lawsuits Filed for Multiple Companies
- CoreWeave Lawsuit: Shareholders of CoreWeave, Inc. have filed a class action lawsuit due to false statements made between March 28 and December 15, 2025, alleging that the company overstated its ability to meet customer demand, which could materially impact revenue and lead to investor losses.
- Bath & Body Works Issues: Shareholders of Bath & Body Works, Inc. have initiated a lawsuit for the period from June 4, 2024, to November 19, 2025, claiming the company failed to disclose that its growth strategy was not attracting customers, potentially leading to an inability to meet financial guidance and misleading investors about the company's prospects.
- Smart Digital Group Risks: Smart Digital Group Limited shareholders have filed a lawsuit for false statements made between May 5 and September 26, 2025, alleging the company did not disclose risks related to market manipulation and fraud, putting its securities at unique risk of trading suspension, with investor losses exceeding $1 million.
- Legal Consultation Advice: The Law Offices of Frank R. Cruz remind investors that those suffering losses during the specified periods can contact the firm to understand their legal rights and ensure their interests are protected in the class actions.
See More
Citi Lowers CoreWeave Financial Estimates Following Q4 Results
- Financial Estimate Revision: Citi Research has lowered its full-year 2026 earnings per share estimate for CoreWeave from $0.75 to -$2.97 following the company's fourth-quarter results, indicating a significant mismatch between revenue timing and expenses that could undermine investor confidence.
- Stock Price Volatility: CoreWeave shares fell 7% in early trading on Tuesday and have declined approximately 28% since the financial results were reported on February 26, reflecting increasing market concerns about the company's future performance.
- Revenue and Profit Adjustments: Citi analysts have aligned their first-quarter 2026 revenue and operating income estimates with guidance, suggesting that despite a disappointing fourth quarter, there is a likelihood of exceeding expectations in upcoming quarters.
- Price Target Reduction: Citi has reduced its price target for CoreWeave from $135 to $126, reflecting a cautious outlook on the company's future profitability, which may influence investor buying decisions.
See More
Latest Wall Street Ratings Analysis
- Ormat Technologies Rating: RBC initiates coverage on Ormat Technologies with an Outperform rating and a $130 price target, indicating the geothermal company is well-positioned for market share gains, highlighting its potential in the renewable energy sector.
- Palantir Data Platform: Rosenblatt reiterates Palantir as a Buy, raising the price target from $150 to $200, emphasizing the platform's value amid the Middle East conflict, which suggests strong demand in the data analytics market.
- Varonis Data Security: Wells Fargo rates Varonis as Overweight, asserting that its best-in-class technology is set to capture increasing enterprise demand for data security as AI adoption and SaaS transitions accelerate, positioning the company for significant growth.
- Netflix Future Outlook: Oppenheimer maintains Netflix as Outperform with a $125 target, noting that the absence of the WBD acquisition makes its outlook more predictable, and the resumption of share repurchases will enhance its competitive position in the market.
See More
CoreWeave Faces Class Action for Securities Fraud
- Lawsuit Background: Leading securities law firm Bleichmar Fonti & Auld LLP has filed a class action lawsuit against CoreWeave and its executives for securities fraud following significant stock drops, urging investors to seek further information to protect their rights.
- Stock Volatility: CoreWeave's stock plummeted over 16% on November 11, 2025, due to the company's failure to meet customer demand and significant construction delays at its data centers, indicating a substantial loss of market confidence.
- Merger Agreement Termination: On October 30, 2025, Core Scientific failed to secure enough shareholder votes to approve the merger, causing CoreWeave's stock to drop more than 6% in a single day, from $139.93 to $131.06, reflecting the negative impact of the merger failure on the company's outlook.
- Legal Implications: Investors have until March 13, 2026, to apply to lead the case, with the lawsuit invoking Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, highlighting significant legal compliance challenges facing the company.
See More
CoreWeave Accused of Misleading Investors in Class Action
- Lawsuit Background: Robbins LLP reminds shareholders that a class action has been filed on behalf of investors who purchased CoreWeave (NASDAQ: CRWV) securities between March 28, 2025, and December 15, 2025, alleging the company misled investors about its ability to meet customer demand.
- False Statement Allegations: The complaint alleges that CoreWeave overstated its capacity to meet customer demand and failed to adequately disclose the risks associated with its reliance on a single third-party data center supplier, which could materially impact the company's revenue.
- Stock Price Volatility: Following a series of disclosures revealing the truth, CoreWeave's stock price plummeted from a high of $183.58 on June 20, 2025, to $69.50 on December 16, 2025, indicating market concerns regarding the company's financial health.
- Shareholder Action Advice: Shareholders are advised to submit their papers by March 13, 2026, to serve as lead plaintiffs in the class action, while those who choose not to participate can remain absent class members eligible for recovery.
See More
