--- title: "CoreWeave CEO Defends Financing Strategy: What Investors Need To Know" description: "CoreWeave Inc (NASDAQ:CRWV) shares are trading higher despite market weakness, following CEO Michael Intrator's defense of the company's financing strategy against allegations of circular financing wi" type: "news" locale: "en" url: "https://longbridge.com/en/news/272591170.md" published_at: "2026-01-14T18:08:46.000Z" --- # CoreWeave CEO Defends Financing Strategy: What Investors Need To Know > CoreWeave Inc (NASDAQ:CRWV) shares are trading higher despite market weakness, following CEO Michael Intrator's defense of the company's financing strategy against allegations of circular financing with Nvidia. He emphasized that Nvidia's $300 million investment is minor compared to CoreWeave's $25 billion capital. The stock shows short-term strength but long-term weakness, trading 14.3% above its 20-day SMA but 13.6% below its 100-day SMA. Analysts maintain a Buy rating with an average price target of $125.52, while upcoming earnings are expected to show a loss of 65 cents per share. **CoreWeave Inc** (NASDAQ:CRWV) shares are trading marginally higher on Wednesday, despite overall market weakness, following the CEO’s strong rebuttal of allegations regarding the company’s financial practices. What’s next for CRWV stock? The stock is moving higher as broader markets are experiencing a downturn, with the **Nasdaq-100** down 1.8% and the **S&P 500** down 0.9%. Here’s what investors https://www.benzinga.com/markets/equities/26/01/49834939/coreweave-ceo-calls-nvidia-circular-financing-claims-ridiculous-says-stake-too-small-to-prop-up-42-billion-company)">need to know. - CoreWeave shares are trending higher. Why is CRWV stock advancing? ## Why CoreWeave’s Financing Strategy Is Misunderstood In a recent podcast appearance, CEO **Michael Intrator** dismissed claims that CoreWeave is engaged in “circular financing” with **Nvidia Corp**, labeling the narrative as “ridiculous” and mathematically unsound. He emphasized that Nvidia’s $300 million investment is minimal compared to CoreWeave’s total capital of over $25 billion, which supports a valuation of $42 billion. Intrator further explained that the company’s aggressive use of debt is managed through special purpose vehicles, ensuring that revenue from contracts with major clients like **Microsoft Corp** and **Meta Platforms Inc** (NASDAQ:META) is ring-fenced to cover operating expenses and lenders first. This structure is designed to mitigate risk and is comparable to traditional infrastructure financing methods. ## Short-Term Strength Masks Long-Term Weakness The stock is currently trading 14.3% above its 20-day simple moving average (SMA) but is 13.6% below its 100-day SMA, indicating some short-term strength while showing longer-term weakness. Over the past 12 months, shares have increased by 120.61% and are currently positioned closer to their 52-week highs than lows. The RSI is at 55.93, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold. Meanwhile, the MACD is above the signal line, indicating bullish momentum. The combination of a neutral RSI and bullish MACD suggests mixed momentum. - **Key Resistance**: $91.00 - **Key Support**: $85.00 ## What Earnings Expectations Mean For Investors Investors are looking ahead to the next earnings report on February 14. - **EPS Estimate**: Loss of 65 cents - **Revenue Estimate**: $1.54 billion **Analyst Consensus & Recent Actions:** The stock carries a **Buy** Rating with an average price target of **$125.52**. Recent analyst moves include: - **Barclays**: Equal-Weight (Lowered Target to $90.00) - **Wells Fargo**: Overweight (Lowered Target to $125.00) - **Truist Securities**: Initiated with Hold (Target $84.00) ## Benzinga Edge Rankings Below is the Benzinga Edge scorecard for CoreWeave, highlighting its strengths and weaknesses compared to the broader market: - **Momentum**: Bullish (Score: 83/100) — Stock is outperforming the broader market. - **Value**: Risk (Score: 7/100) — Trading at a steep premium relative to peers. **The Verdict:** CoreWeave’s Benzinga Edge signal reveals a classic ‘High-Flyer’ setup. While the Momentum (83) confirms the strong trend, the extremely low Value (7) score warns that the stock is priced for perfection—investors should ride the trend but use tight stop-losses. ## Top ETF Exposure - **Tradr 2X Long CRWV Daily ETF** (NASDAQ:CWVX): 118.53% Weight - **iShares US Digital Infrastructure and Real Estate ETF** (NYSE:IDGT): 4.65% Weight - **REX IncomeMax Option Strategy ETF** (NASDAQ:ULTI): 5.05% Weight **Significance:** Because CRWV carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock. ## Price Action **CRWV Price Action:** CoreWeave shares were up 0.94% at $88.30 at the time of publication on Wednesday, according to Benzinga Pro data. *Image: Shutterstock* ### Related Stocks - [CRWV.US - Coreweave](https://longbridge.com/en/quote/CRWV.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | New Data Shows NVIDIA Blackwell Ultra Delivers up to 50x Better Performance and 35x Lower Costs for Agentic AI | NVIDIA's new Blackwell Ultra platform significantly enhances performance and cost efficiency for agentic AI applications | [Link](https://longbridge.com/en/news/276070881.md) | | Delhivery Builds AI-Powered Location Intelligence With Nvidia | Delhivery Ltd :DELHIVERY - BUILDS AI-POWERED LOCATION INTELLIGENCE WITH NVIDIA | [Link](https://longbridge.com/en/news/276304010.md) | | Citi Is Hot on Nvidia Ahead of February 25. 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