Jane Street Just Bought $1 Billion of CoreWeave Stock. Should You?

CoreWeave (CRWV) recently became one of the key companies in the domain of AI infrastructure development. In fact, CRWV entered into a $6 billion partnership with Jane Street and secured a $1 billion equity investment, thereby increasing the list of partners of the firm. Generally, the deal is not something isolated from multi-billion-dollar deals that the company had already reached with Meta (META) and Anthropic.

First, it should be said that the race of firms implementing AI projects is becoming increasingly fierce. It is explained by the fact that the implementation of expansion strategies has led to the emergence of sharp surges in demand for advanced computer capabilities, especially in connection with the need for solutions of the latest generation like Vera Rubin by Nvidia (NVDA). This situation is making providers of AI infrastructure (such as CoreWeave) integral components of the AI tech stack.

Overview of CoreWeave Stock

To begin with, CoreWeave can be described as an AI-focused cloud computing service provider specializing in the provision of advanced computing capabilities designed for AI-related tasks. Being headquartered in Livingston, NJ, the company has managed to grow rapidly and become a player worth nearly a ~$50 billion market cap, thus positioning itself as a strong competitor to other cloud providers in the sphere of AI-related services.

As far as the current performance of the company's stock is concerned, it has shown itself quite positively since the beginning of the year—CRWV rose by ~37% in one month and went even higher to ~252% from its historic lows. Despite the significant rise in price, CoreWeave is still 37% below its historic highs. Thus, despite the high-growth potential, CRWV stock can be described as a volatile asset.

In terms of valuation, CoreWeave is trading at the level of ~9.7x of trailing twelve-month revenues. While high, this price/sales multiple might appear to be justified by the nature of the business. At the same time, according to profitability indicators, CoreWeave shows negative margins and a negative return on equity (ROE) of 33.8%. Besides, the levels of debt are high, with a debt/equity ratio of CoreWeave being equal to 6.4. 

Overall, one can say that investors buy the stock primarily based on the growth outlook.

CoreWeave Misses on Earnings

The performance of CoreWeave in the year ending Dec. 31, 2025, could be described as fairly poor. So, the company managed to generate $5.13 billion in revenue thanks to the sharp increase in demand. The most remarkable thing here is the high level of order backlog, amounting to $66.8 billion—the record-high level for CRWV, which might serve as an indication of future performance.

Nevertheless, when it comes to profitability metrics, it turns out that the company faces difficulties here. Namely, net income amounted to -$1.17 billion amid the sharply growing interest expenses (about $1.2 billion). However, despite relatively fast growth, some margin compression was noticeable.

At the same time, during the period discussed, CoreWeave was able to expand its power capacity up to 850 MW and enter into agreements on 3.1 GW additionally. Also, some advanced capabilities, such as AI-native storage and reinforcement learning, became available to customers.

Notably, the agreements signed by CoreWeave with such big names as Jane Street show that the demand for AI-based technologies is not just purely speculative.

What Do Analysts Expect From CRWV Stock?

The expectations of Wall Street regarding the stock can be described as rather moderate with a cautious positive sentiment. This is evidenced by a consensus rating of “Moderate Buy” driven by strong growth outlook and favorable positioning in the sphere of AI infrastructure. Particularly, the average target price of $122.47 translates into a marginal upside of about 5%. Nonetheless, the range of forecasts remains broad—from $41 on the low end to $180 on the high end.