Coreweave (CRWV) Sentiment Suddenly Reverses Course And Turns Very Bullish

Shares of CoreWeave (NASDAQ: CRWV) have mounted a sharp reversal in sentiment over the past 24 hours, swinging from deeply bearish to neutral-to-bullish territory on Reddit and X. Right now the social sentiment sits at 58/100, up from just 25/100 on the mroning November 25th. With 50 considered perfectly neutral, this is a remarkable rally in just one day.

This turnaround is particularly striking given that CoreWeave stock has collapsed roughly 40% over the past month, making the sudden shift in investor mood a notable inflection point. What is going on with this AI darling?

Earnings Overhang Gets Clarified

The pivot in social sentiment began started to catch fire when CoreWeave CEO Mike Intrator clarified on broadcast TV that Corezero (Nasdaq: CORZ) and not Applied Digital (Nasdaq: APLD) was responsible for delaying the company’s Q4 data center openings. This simple disclosure removed the uncertainty that had been hanging over investors since the most recent earnings release. r/wallstreetbets, users seized on the revelation as vindication:

CRWV CEO Admits to Jim Kramer that it was CORZ – NOT APLD – That Delayed Multiple CRWV Data centers from Opening in Q4
by
u/15xorbust in
wallstreetbets

The post, which earned 81 upvotes and 28 comments, captured the relief: “If only he had come clean in yesterday’s CRWV earnings call instead of not disclosing who it was, which caused APLD stock to get completely obliterated.”

The fundamental case also tightened. CoreWeave reported Q3 earnings on Nov 10 that beat expectations by a stunning 77.8%, posting an EPS loss of $0.08 versus a projected $0.36 loss. Revenue surged 420% year-over-year to $1.36 billion, doubling the backlog to $55 billion. That performance stands in sharp contrast to Q2, when the company missed estimates by 35%.

Investors: Watch the Backlog

CoreWeave trades at 22.2x P/S ratio. This is a very premium valuation that rests entirely on near-perfect execution. For comparison, the P/S for the Nasdaq is only 6.3, and many consider that too rich! Bulls would argue that the $55 billion backlog and expanding partnerships with Meta, OpenAI, and NVIDIA provide the runway to grow into the multiple. Maybe that’s true, but with fear creeping back into the markets investors need to watch whether the company can convert backlog into profitable revenue. Any moderation in Capex intensity would also be a welcome boon.