Insiders Celebrated the New Year by Selling These Stocks: Caution to Buyers
Insider Selling Trends: Significant insider selling has been observed in companies like Core Weaver, Urban Outfitters, and Kratos Defense & Security Solutions, raising concerns about potential market pressures in 2026.
Market Dynamics: The selling activity aligns with technical market tops, which could lead to price pullbacks and create buying opportunities for investors despite current near-term pressures.
Institutional Activity: Institutions hold about 50% of shares in Core Weaver, indicating strong institutional support, while insiders have been selling, creating a complex market dynamic.
Analyst Sentiment: Analysts maintain a bullish outlook with price targets suggesting potential upside, despite mixed sentiment and the risk of volatility due to insider selling and profit-taking by short-term owners.
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- Brand Vision Update: CoreWeave launches its campaign “Ready for Anything, Ready for AI,” aimed at attracting investors and innovators by emphasizing its critical role in transitioning the AI industry from experimentation to large-scale production.
- Technology Advantage Showcase: The campaign highlights how CoreWeave's purpose-built technology supports innovators in realizing bold ideas, reinforcing its unique position as a leader in AI cloud services and infrastructure.
- Market Expansion Strategy: Through this campaign, CoreWeave integrates its brand narrative, particularly after acquiring Weights & Biases, OpenPipe, and Monolith, showcasing its rapid growth capabilities and market adaptability, thereby enhancing customer trust.
- Future Development Positioning: CMO Jean English states that this campaign lays the foundation for CoreWeave's brand, aiming to grow alongside future AI developments, emphasizing the importance of performance, scale, and durability in the AI industry.
- Significant Revenue Growth: CoreWeave's revenue skyrocketed from $16 million in 2022 to $1.9 billion in 2024, with projections of reaching $5.1 billion in 2025, showcasing its strong growth potential in the AI market.
- Data Center Expansion: The company expanded from three data centers at the end of 2022 to 33, leveraging dedicated GPUs to process AI tasks 35 times faster and 80% cheaper than larger cloud platforms, significantly enhancing its competitive edge.
- Capital Strategy: CoreWeave secured additional financing by leveraging GPUs as collateral and invested $100 million in Nvidia's H100 data center GPUs in 2022, further driving its infrastructure expansion.
- Optimistic Future Outlook: Despite risks from a 70% revenue dependency on Microsoft and potential debt increases, analysts expect its market cap to double to $98 billion by 2027, reflecting confidence in its long-term growth trajectory.
- Class Action Initiated: Bronstein, Gewirtz & Grossman LLC has filed a class action lawsuit against CoreWeave, alleging violations of federal securities laws from March 28 to December 15, 2025, seeking to recover losses for investors, highlighting significant investor dissatisfaction with the company's transparency.
- False Statement Allegations: The complaint accuses CoreWeave executives of making materially false and misleading statements during the class period, particularly overstating the company's ability to meet customer demand, which could lead to a significant negative impact on revenue, indicating serious governance and risk management flaws.
- Investor Rights Protection: Affected investors are encouraged to apply to be lead plaintiffs by March 13, 2026, demonstrating a strong commitment to actively protect their rights in the legal process, which may influence the company's future stock performance.
- Law Firm Background: Bronstein, Gewirtz & Grossman LLC is renowned for recovering hundreds of millions for investors, emphasizing its expertise in securities fraud class actions, which may bolster investor confidence in the case.
- Class Action Reminder: The Schall Law Firm alerts investors of a class action lawsuit against CoreWeave for securities violations, involving trades from March 28 to December 15, 2025, with a deadline to contact the firm by March 13, 2026, to participate.
- False Statements Allegation: The complaint alleges that CoreWeave made false and misleading statements to the market, claiming it could meet customer demand while downplaying the risks of relying on a single third-party vendor, resulting in investor losses.
- Failed Acquisition Impact: CoreWeave's unsuccessful acquisition of Core Scientific and delays in bringing data centers online, coupled with media reports, revealed the truth about its operations, exacerbating investor damages.
- Legal Consultation Opportunity: The Schall Law Firm offers free consultations, encouraging affected investors to reach out to discuss their rights, noting that the class has not yet been certified, meaning investors are not represented by an attorney during this period.
- Class Action Alert: Hagens Berman is notifying investors that CoreWeave is facing a class action lawsuit alleging that the company and its executives misled the market regarding its AI infrastructure scaling capabilities, which could lead to significant investor losses. This lawsuit provides an avenue for investors to recover losses incurred due to the company's misleading statements, likely resulting in severe reputational and stock price impacts.
- Market Capital Decline: Following construction delays at the Denton, Texas data center, CoreWeave's market capitalization plummeted by approximately $14 billion, reflecting a critical inability to meet robust customer demand, which may lead to future customer attrition and revenue declines.
- Investor Loss Compensation: Hagens Berman urges investors who purchased CRWV shares between March 28, 2025, and December 15, 2025, and suffered losses to submit claims before the March 13, 2026 deadline, indicating that the legal pressure on the company could affect its future financing capabilities.
- Increased Regulatory Risks: As the class action progresses, CoreWeave may face heightened regulatory scrutiny, particularly regarding its heavy reliance on a single third-party data center supplier, which poses risks not only to its current operations but also to its long-term strategic development.
- Lawsuit Background: A class action lawsuit has been filed by Bleichmar Fonti & Auld LLP against CoreWeave and its executives for securities fraud following significant stock drops, with investors encouraged to apply to lead the case by March 13, 2026.
- Stock Price Volatility: CoreWeave's stock dropped over 6% on October 30, 2025, from $139.93 to $131.06 after the merger agreement with Core Scientific failed to secure shareholder approval, indicating market disappointment in its merger prospects.
- Guidance Downgrade: On November 10, 2025, CoreWeave lowered its revenue and operating income guidance due to delays from a third-party data center developer, causing its stock to plummet over 16% from $105.61 to $88.39, reflecting operational inadequacies.
- Delay Impact: The Wall Street Journal reported on December 15, 2025, that construction delays at a Texas data center led to a further stock drop of over 3%, from $72.35 to $69.50, exacerbating investor concerns about the company's future.











