CoreWeave Stock Rises 7% After Goldman Sachs Upgrade

CoreWeave shares rose 7% on Monday following a rating upgrade from Goldman Sachs, which moved the neocloud provider from Neutral to Buy and increased its price target from $106 to $139 per share.

The rebound follows a period of significant volatility in which shares fell more than 25% last week. This sell-off was driven by investor concerns regarding spiking bond yields and the company's debt-heavy balance sheet.

NVIDIA CEO Jensen Huang attempted to stabilize investor sentiment, stating he was "optimistic" and that the company's "cost of capital is actually decreasing." Supporting this outlook, Wedbush Securities Senior Managing Director Dan Ives defended the valuation by highlighting a revenue backlog of approximately $104 billion.

Retail investors also increased their positions during the price drop, with Robinhood reporting record five-day net purchases of the stock.