CoreWeave Up 10% on Nasdaq 100 Inclusion; Cloudflare, Snowflake Slide

Shares of CoreWeave (CRWV) jumped 10% in midday trading Tuesday, changing hands near $117. The move came after the company joined the Nasdaq 100 index, a change that forces passive funds to buy the stock. The rest of the AI cloud group moved in the opposite direction. Cloudflare (NET) fell 2%. Snowflake (SNOW) dropped 1%.\n\nThe index inclusion triggered mechanical buying from ETFs and index funds that track the Nasdaq 100. Traders said the rebalancing created a one-time demand event that lifted CoreWeave regardless of its underlying business momentum. The stock had been trading below its post-IPO highs. The inclusion gave it a fresh bid.\n\nCoreWeave's jump stands in sharp contrast to its peers. Cloudflare and Snowflake have both lost ground in recent weeks as investors rotate out of high-multiple names into value and energy. Cloudflare is down about 8% from its post-earnings high. Snowflake is off 5% from its own. The divergence between price action and fundamental signals is wide.\n\nAlphaScala's proprietary system rates CRWV at 19 out of 100, a Weak label. NET scores 36/100, labeled Mixed. SNOW scores 44/100, also Mixed. The scores reflect business quality, valuation, and momentum. CoreWeave's rally is not backed by those underlying metrics. It is driven by a structural inflow that has nothing to do with its operations. Traders cautioned that the stock could give back gains once the rebalancing is complete.\n\nVolume in CoreWeave shares was roughly triple the 30-day average on Tuesday. That confirms the institutional flow. The Nasdaq 100 rebalancing took effect after the close on Friday. CoreWeave replaced a smaller component. The forced buying was concentrated in the first few trading sessions after the change.\n\nFor investors comparing the three stocks, the readthrough is straightforward. CoreWeave benefits from a passive flow that is temporary and mechanical. Cloudflare and Snowflake trade on their own fundamentals. Those have not improved enough to attract fresh buying. The divergence will likely narrow once the index effect fades, traders said.\n\nCoreWeave reports its next quarterly results in mid-May. Cloudflare reports in early May. Snowflake reports in late May. Until then, the index inclusion gives CoreWeave a floor that the other two do not have.