CoreWeave stock gets 'Buy' rating

Citi has upgraded CoreWeave to a 'Buy' rating, with analysts predicting growth acceleration by 2026 due to increasing contracts and AI demand. This follows a 45% drop from its peak, with analysts believing CoreWeave's core strengths have improved, especially after Microsoft's earnings report.

CoreWeave operates a cloud platform designed for managing complex AI infrastructure, supporting the development of AI models and applications. The company's revenue has seen impressive growth, but there are concerns about its financial health, including a high debt-to-equity ratio and potential liquidity issues.

Despite these concerns, CoreWeave's focus on AI solutions and cloud infrastructure positions it as a significant player in the technology sector. However, analysts also point to potential risks such as accounting for depreciation and rising competition.