CoreWeave (CRWV +9.75%) stock soared 8% through 11 a.m. ET Tuesday morning — and you can thank Cantor Fitzgerald for that.
This morning, Cantor doubled down on its CoreWeave bet, insisting the data center stock is cheap at just $115 per share, and deserves a $167 price target — implying CoreWeave could rise 44% over the next year.
Image source: Getty Images.
Why Cantor loves CoreWeave
Writing on StreetInsider.com today, Cantor Fitzgerald analyst Brett Knoblauch digs deep into disclosures from CoreWeave’s recent bond offering to uncover details he says “equity investors have largely ignored.”
Specifically, Knoblauch notes that CoreWeave signed long-term contracts worth $40 billion in Q1 2026 — and could sign another $40 billion–worth in Q2. Not all this revenue will arrive immediately; it will be spread out over several years. But just counting annual revenue, CoreWeave is already 90% to its goal of hitting $30 billion in annual recurring revenue by the end of 2027, according to this analyst.
And assuming he’s right about all this, Knoblauch says CoreWeave stock is selling for a seemingly cheap 6.2x EV/EBITDA valuation — and is on track to beat earnings in its Q2 report.
Today’s Change
(9.75%) $10.40
Current Price
$117.11
Key Data Points
Market Cap
$58B
Day’s Range
$107.58 – $119.44
52wk Range
$63.80 – $187.00
Volume
2.1M
Avg Vol
29.1M
Gross Margin
34.82%
What’s next for CoreWeave stock
What exactly are these earnings that Knoblauch expects CoreWeave to beat? According to Yahoo! Finance data, CoreWeave is expected to more than double its revenue year over year, hitting $2.6 billion in sales but losing $1.25 per share on those sales.
Yes, you read that right. “Beating earnings” in the case of CoreWeave means still losing a lot of money, and indeed, losing more than twice as much money as the company lost a year ago — despite doubling sales.
Seems to me, the more CoreWeave sells, the more money it loses. That doesn’t sound like a great investment to me.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
