Wall Street’s Wild Ride: Why Jim Cramer Still Calls CoreWeave a ‘Win’ Despite Massive Stock Slide
If you have been watching the high-flying world of artificial intelligence stocks, you know the last few months have been less like a smooth flight and more like extreme turbulence. Few companies encapsulate this volatile market better than CoreWeave, the cloud infrastructure specialist powering the generative AI revolution.
The stock, trading under the ticker CRWV, has suffered a significant plunge from its stratospheric peak. Yet, amidst the pullback and a fresh wave of investor anxiety, market maven Jim Cramer delivered a dose of perspective to viewers, still calling the AI infrastructure play a “win.” The reason, as is often the case in the stock market, comes down to how you frame the numbers.
Cramer’s assessment acknowledges the painful drop from the stock’s all-time high. The company’s shares peaked at a remarkable $187.00 per share back in June of 2025. That high followed a massive run-up after its initial public offering in late March. Fast forward to the end of November, and the price sits dramatically lower, hovering in the low $70s. That drop represents a massive loss of value for anyone who bought near the summer high.
So, how can he still label it a win? The answer lies in the company’s private fundraising history. CoreWeave raised a substantial $1.5 billion at a price of $40 per share. “With the stock now at $73 and change, you can still call that a win,” Cramer noted. For those early-stage investors, the current price represents a nearly doubling of their money, a handsome return by any measure, even if the party has cooled off since the summer.
The recent investor jitters are tied to a few factors. CoreWeave is a critical ‘neocloud’ operator, providing the high-performance compute and storage necessary for massive GenAI workloads. However, building the data centers needed to house that infrastructure is a capital-intensive, difficult business. The company recently shocked the market by slightly cutting its full-year revenue outlook, blaming a key contractor, Core Scientific, for failing to deliver its part of several data centers on time.
Despite this operational hiccup, the underlying business demand appears immense. CoreWeave’s third-quarter earnings showed a massive 134% year-over-year revenue growth. Even more compelling is its customer demand, with the company boasting a staggering $55 billion in backlog. It is clear that the market needs the cloud services CoreWeave is selling.
However, the company’s aggressive buildout requires massive investment, which has led to a significant debt load, estimated to be around $14 billion. Furthermore, a significant portion of the company’s revenue, up to 77%, comes from just two major customers, creating a risk of high customer concentration. These factors, combined with some notable insider selling by the CEO, have all contributed to the recent stock pressure.
Ultimately, CoreWeave represents a microcosm of the entire AI investment space. It offers breathtaking growth and enormous long-term contract visibility, while also presenting significant risks tied to execution, capital structure, and market volatility. Cramer’s “win” is a reminder that in this market, perspective is everything: a steep drop from a peak can still be a phenomenal gain from a starting line.
