CoreWeave Inc ( CRWV ) shares are trading lower Tuesday, adding to losses of nearly 40% over the past week. Here’s a look at what’s going on.

What To Know: CoreWeave ( CRWV ), which provides access to Nvidia GPUs to large technology and AI-focused companies, has seen its stock retreat from recent highs.

The sell-off comes after the company reported mixed results for the second quarter with revenue of $1.21 billion beating estimates of $1.08 billion, but a quarterly loss of 27 cents per share, missing estimates for a loss of 17 cents per share.

Following CoreWeave’s second-quarter report, multiple analysts maintained neutral ratings, suggesting shares may be close to fully valued following a strong run in recent months on the back of the company’s IPO from March. A majority of shares also became eligible for sale last week after the IPO lockup expired, which appears to be adding to the selling pressure in the stock.

The stock shows a bearish trend with a recent high at $96.50 and a low of $90.01, indicating a potential reversal as it approaches support. Volume is robust at 16.88 million shares, suggesting strong selling pressure. This spike in volume confirms the bearish sentiment as the stock breaks below key support levels.

The RSI is calculated at 30.12, signaling that the stock is in oversold territory, which may indicate a potential bounce if buying interest returns. The MACD shows a bearish crossover, with the MACD line at -2.15 and the signal line at -1.75, reinforcing the downward momentum.

Overall, momentum indicators and price action suggest a cautious approach as the stock navigates through this bearish phase. The combination of bearish technical indicators and potential insider selling suggests that investors should proceed with caution when considering positions in CoreWeave ( CRWV ).

CRWV Price Action: CoreWeave ( CRWV ) shares were down 8.03% at $89.06 at the time of publication Tuesday, according to Benzinga Pro.

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