Rosenblatt Sees Buying Opportunity in CoreWeave After Selloff
CoreWeave shares fell sharply after a Bloomberg report that Meta Platforms plans to launch a cloud business selling AI computing power. Rosenblatt analysts view the decline as overdone and reiterate their Buy rating, calling it a buying opportunity.
Shares of CoreWeave (CRWV) dropped sharply on July 1, 2026, following a Bloomberg report that Meta Platforms (META) is planning to launch a cloud business to sell AI computing power. However, Rosenblatt analysts viewed the selloff as overdone and reiterated their Buy rating on the stock, calling the move a buying opportunity.
Reasons for the Move
The immediate trigger was the Bloomberg report suggesting Meta intends to enter the AI cloud computing space, potentially creating a new competitor for companies like CoreWeave that specialize in AI cloud infrastructure.
Rosenblatt's Stance
In a note dated July 2, 2026, Rosenblatt analysts argued that the market reaction was excessive. They noted that the AI cloud computing market is still in its early stages and demand far exceeds supply, meaning a new entrant like Meta is unlikely to negatively impact CoreWeave in the near term.
Broader Context
CoreWeave is listed among the 10 Best Pick and Shovel AI Stocks to Invest In according to Insider Monkey. The stock has experienced volatility recently as competition in the AI infrastructure space intensifies.
Similar Moves in the Sector
Other stocks in the AI cloud computing space have seen similar volatility when news of new competitors emerged, but most recovered later as analysts reaffirmed strong underlying demand.
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