Cathie Wood Buying Dip in CoreWeave After 45% Crash — Should You?

This article first appeared on GuruFocus.

Ark Invest boosted its exposure to CoreWeave (NASDAQ:CRWV) on Monday, stepping in after the AI-infrastructure provider’s shares retreated sharply over the past month.

The bulk of the buying occurred in the ARK Innovation ETF (ARKK), which added 396,178 shares. Following the move, ARKK’s stake is valued at roughly $52.4 million, representing about 0.7% of the fund.

The ARK Next Generation Internet ETF (ARKW) increased its position as well, acquiring 41,167 shares. ARKW now holds approximately $35.8 million in CoreWeave, making the stock its 19th-largest weight at about 1.7% of assets.The investment firm purchased a combined 437,345 CoreWeave (NASDAQ:CRWV) shares across two of its active ETFs.

CoreWeave has lost close to 45% over the last month amid cooling sentiment toward high-growth AI names. Ark has historically used sharp drawdowns to accumulate positions it views as tied to long-term technology themes, including advanced compute infrastructure and cloud-based acceleration services.

Based on the one year price targets offered by 26 analysts, the average target price for CoreWeave Inc is $131.80 with a high estimate of $234.00 and a low estimate of $36.00. The average target implies a upside of +84.87% from the current price of $71.29.

Based on the consensus recommendation from 31 brokerage firms, CoreWeave Inc’s (NASDAQ:CRWV) average brokerage recommendation is currently 2.5, indicating a “Outperform” status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.