Jane Street Just Bought CoreWeave Stock. Should You?
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CoreWeave (CRWV) remains in focus today after an SEC filing confirmed Jane Street has loaded up on shares of the artificial intelligence (AI) infrastructure company in recent sessions.
According to the regulatory filing, the NY-headquartered quantitative trading firm now owns some 20 million CRWV shares, representing a 5.4% stake in the AI hyperscaler.
CoreWeave stock has taken a massive hit amid a broader tech selloff in recent days. At the time of writing, it’s down well over 35% versus its high on Aug. 12.
Why Jane Street’s Investment Is Bullish for CoreWeave Stock
Jane Street’s stake is meaningfully positive for those invested in CRWV shares for several reasons.
For one, a sizable investment from one of the most sophisticated quantitative trading firms globally signals strong conviction in the AI firm’s long-term prospects.
It validates CoreWeave’s strategic positioning and could attract further interest from hedge funds and asset managers over the next few weeks and months.
According to the artificial intelligence hyperscaler, its offerings are crucial to meet the increasing demand for compute infrastructure – and Jane Street’s vote of confidence reinforces the credibility of that narrative.
In short, the announcement could trigger a much-needed reprieve in CoreWeave stock.
HCW Analyst Says CRWV Shares Could Climb Back to $180
H.C. Wainwright analyst Kevin Dede also remains bullish on CRWV stock, especially now that it has come significantly off its high of nearly $184 in late June.
In his research note today, Dede raised his rating on the AI stock to “Buy,” saying it can effectively double from here over the next 12 months.
According to him, the firm is “a leader in the neocloud space” and is now trading at a reasonable valuation for a high-growth tech name.
A more than 200% year-over-year increase in Q2 revenue and recently raised full-year outlook were among other reasons Dede cited for his bullish view on CoreWeave shares.
How Wall Street Recommends Playing CoreWeave
Other Wall Street firms also agree that the selloff in CoreWeave stock has gone a little too far.
While the consensus rating on CRWV shares remains at “Hold,” the mean target of about $123 signals potential upside of some 35% from current levels.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.