Updated
Updated · TheStreet · Jul 8
Ark Innovation ETF Buys $2.1 Million of CoreWeave After 30% Slide Triggered by Meta
Updated
Updated · TheStreet · Jul 8

Ark Innovation ETF Buys $2.1 Million of CoreWeave After 30% Slide Triggered by Meta

1 articles · Updated · TheStreet · Jul 8

Summary

  • 23,743 CoreWeave shares worth about $2.1 million were added by Ark Innovation ETF on July 7, buying into a sharp pullback in the AI cloud stock.
  • Meta’s plan to sell excess computing capacity helped spark the latest selloff, raising competition concerns for CoreWeave, whose shares have already fallen more than 30% since its May earnings and nearly halved from a June 2025 high.
  • CoreWeave’s May report showed a wider-than-expected $1.12 adjusted loss per share, while Q2 revenue guidance of $2.45 billion to $2.6 billion missed Wall Street’s $2.69 billion midpoint expectation despite revenue more than doubling to $2.08 billion.
  • Rosenblatt still reiterated a buy rating with a $250 target, arguing GPU demand from hyperscalers remains strong and that Meta likely cannot resell leased CoreWeave capacity through 2032.
  • The purchase fits Cathie Wood’s dip-buying strategy in volatile innovation stocks, even as ARKK trails the S&P 500 this year and has seen about $1.21 billion in net outflows over the past 12 months.

Insights

With soaring debt and negative cash flow, is CoreWeave's massive AI backlog an asset or a future liability?
Is the AI 'GPU shortage' a myth, with the real crisis being massive underutilization of existing hardware?
As AI data centers demand city-sized power, is the true bottleneck compute hardware or the global energy grid?