CoreWeave drops 5% despite Cantor Fitzgerald's buy-the-dip call

CoreWeave shares fell more than 5% in premarket trading Friday despite Cantor Fitzgerald recommending investors buy the dip, citing fear-driven selling and support from Nvidia. Cantor analyst Brett Knoblauch maintained an Overweight rating and $176 price target, arguing that strong demand and backing from industry leaders make current valuations attractive. CoreWeave funds capital expenditures through asset-backed facilities, repaying as chips generate cash flow. Rising margins and revenue per megawatt support the funding model if demand remains robust. However, Gartner forecasts most neocloud providers may lose independence, and sharp debt yield increases have fueled concerns about sustainability during rapid expansion.