Shares of CoreWeave Inc. (CRWV) are having a rough start to the week. The decline is part of a broader risk-off mood in the market, with the Nasdaq Composite dropping as geopolitical tensions flare. But for CoreWeave, there are a few specific reasons the stock is under pressure.

Short Sellers Are Piling In

One notable development is that short sellers have been increasing their bets against the company. During the last reporting period, the number of shares sold short jumped from 46.67 million to 50.71 million. That means a hefty 18.86% of the company's available shares are now held in short positions. With an average daily trading volume of 23.00 million shares, it would take those short sellers roughly 2.2 days to buy back and cover their positions if they needed to exit in a hurry.

The Guidance Problem

The current slide follows an even steeper drop on Friday, when shares tumbled 18%. The catalyst was the company's first-quarter revenue outlook. CoreWeave told investors to expect revenue between $1.9 billion and $2 billion for the quarter. The problem? Wall Street analysts were collectively expecting about $2.291 billion. That's a meaningful miss. In a classic "look over here, not there" move, management did reaffirm its full-year 2026 revenue guidance of $12 billion to $13 billion, trying to steer focus to the long-term story.

What the Charts Are Saying

From a technical perspective, the stock's recent bounce has completely faded. It's now trading 17% below its 20-day simple moving average and 20.9% below its 100-day average, putting it back under those key trend indicators. Here's the twist: even after gaining nearly 99% over the past year, the stock is currently sitting closer to its 52-week low than its high. That shows just how far it has fallen from its peak of $187.00. The Relative Strength Index (RSI) is at 40.52, which is technically in neutral territory but is drifting away from the 50 level, suggesting weakening momentum. Traders are watching key resistance at $87.50 and key support at $74.00.

Earnings and What the Analysts Think

The next major event for the stock is the earnings report scheduled for May 13. The consensus estimate is for a loss of 99 cents per share, which is wider than the loss of 60 cents per share reported a year ago. Revenue, however, is expected to surge to $1.96 billion, up dramatically from 98 cents billion a year ago. The company is not currently profitable, so a traditional P/E ratio isn't available.

The stock still carries an average Buy rating from analysts, with a consensus price target of $124.81. But the recent moves tell a more nuanced story:

• HC Wainwright & Co. maintained its Buy rating and its sky-high $180 price target on March 2.
• Macquarie took a more cautious stance, issuing a Neutral rating and lowering its price target to $90 on February 27.
• Mizuho also issued a Neutral rating and lowered its target to $95, also on February 27.

So, while the official rating is a Buy, the recent actions from several analysts suggest some are getting less optimistic about the near-term path. At the time of publication, CoreWeave shares were down 2.61% at $77.48.