CoreWeave’s shares have plunged 26% over five days, wiping out $13 billion in market value as of March 4, 2026. The AI cloud powerhouse, now valued at $38 billion with shares around $73, faces investor jitters after a rocky Q4 earnings report.
Recent Slump Drivers
Q4 revenue hit $1.57 billion, up 110% year-over-year and beating estimates, while full-year 2025 sales soared 168% to $5.1 billion. Yet EPS sank to -$0.89, missing forecasts by $0.28, with net losses at $452 million amid surging operating expenses of $1.7 billion.
The real shock: 2026 capex hiked to $30-35 billion double prior plans to fuel expansion, sparking fears of prolonged losses and $21 billion debt load. Q1 revenue guidance of $1.9-2 billion underwhelmed the $2.29 billion consensus, triggering an 18% post-earnings drop.
Solid Foundations Shine Through
Citing a $66.8 billion contracted backlog that supports multi-year revenue visibility and de-risks growth, and maintain a Buy rating for CRWV despite a 25% post-earnings stock decline.
The management of CRWV projects $12–$13 billion in revenue by 2026 and anticipates a decline in margins in the first quarter before a sequential increase driven by long-term client commitments.
CEO Mike Intrator was direct about the tradeoff on the earnings call. He said:
“Our margins reflect the cost of building tomorrow’s revenues,”
Analyst Take and Outlook
Of the 30 analysts who cover CoreWeave stock, 16 advise “Strong Buy,” four advise “Moderate Buy,” and 13 advise “Hold.”
Looking ahead, success hinges on deploying that $30 billion capex amid GPU shortages and rival pressure. With AI capex from big clouds doubling to $660 billion, CoreWeave’s scale could convert backlog into cash flows by mid-2026, potentially reversing losses and driving shares past $120.
Risks linger in delays, but the AI boom favors bold builders like this.
