CoreWeave downgraded to "Strong Sell" due to rising losses, high spending, and legal risks despite revenue growth and a large backlog.

CoreWeave (CRWV) was downgraded to "Strong Sell" by Sanford C. Bernstein amid growing investor concerns over its widening losses, high capital spending, and legal risks, including multiple class-action lawsuits. The company reported a Q4 loss of $0.89 per share, missing estimates by $0.28, despite 110.4% year-over-year revenue growth to $1.57 billion. Negative net margin of 22.75% and return on equity of 33.82% underscored profitability challenges. While a major partnership with Perplexity and a $66.8 billion backlog highlight long-term potential, insider selling totaling $373 million in 90 days and a 52-week stock decline from $187 to around $79.63 reflect market skepticism. Analysts remain divided, with Truist raising its price target to $85 but maintaining a "Hold" rating, and the consensus rating staying at "Hold" with a $121.77 target.