Coreweave Stock Plummets on Disappointing Revenue Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy CRWV?
Source: Newsfilter
- Revenue Guidance Cut: Coreweave's stock plummeted nearly 20% due to disappointing revenue guidance, raising concerns about the company's profitability, especially with plans to spend between $30 billion and $35 billion in 2026, significantly exceeding FactSet's estimate of $26.9 billion.
- Accelerated Infrastructure Investment: CEO Mike Intrator stated in a CNBC interview that the company has intentionally accelerated its infrastructure buildout to meet a 'once in a generation' demand, which, while impacting short-term margins, is supported by a substantial backlog indicating strong market demand.
- Debt Financing Dependence: Coreweave relies heavily on debt to finance the purchase of advanced Nvidia chips, which it rents out to clients like Microsoft and OpenAI, with increasing concerns over the sustainability of its debt load and business model amid recent credit market turbulence.
- Capital Cost Expectations: Intrator expects capital costs to continue declining, having decreased by 300 basis points over the past 12 months, translating to $700 million in savings, despite ongoing market concerns regarding rising credit costs.
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Analyst Views on CRWV
Wall Street analysts forecast CRWV stock price to rise
25 Analyst Rating
12 Buy
13 Hold
0 Sell
Moderate Buy
Current: 97.630
Low
68.00
Averages
123.23
High
180.00
Current: 97.630
Low
68.00
Averages
123.23
High
180.00
About CRWV
CoreWeave, Inc. is a cloud infrastructure technology company. The Company offers the CoreWeave Cloud Platform, which consists of software and cloud services that deliver the automation and efficiency needed to manage complex artificial intelligence (AI) infrastructure. Its CoreWeave Cloud Platform is an integrated solution that is purpose-built for running AI workloads such as model training and inference. Its solutions include infrastructure services, managed software services, and application software services. Its Infrastructure Services provide its customers with access to advanced graphics processing unit (GPU) and central processing unit (CPU) compute, highly performant networking, and storage. Its Managed Software Services include CKS, a flexible virtual private cloud and a bare metal service that runs kubernetes directly on high-performance servers. Its Application Software Services build on top of its infrastructure and managed software services, integrating additional tools.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
COREWEAVE STOCK DROPS 16.7% FOLLOWING Q4 REPORT, PROJECTS CAPITAL EXPENDITURES TO DOUBLE TO $30 BILLION BY 2026
- Core Weave Shares Decline: Core Weave's shares fell by 16.7% following the release of their Q4 results.
- Future Expectations: Expectations are set for Capex to double by 2026, potentially reaching $30 billion.
See More
CoreWeave Leads the Charge in AI Cloud Computing
- Significant Revenue Growth: CoreWeave's revenue surged from $16 million in 2022 to over $1.9 billion in 2024, indicating strong growth potential in the AI cloud computing sector, with 2025 revenue estimates exceeding $5 billion, reflecting robust market demand for its services.
- Solid Customer Base: CoreWeave's long-term partnerships with major companies like Microsoft and OpenAI ensure its critical role in supplying AI computing power, while a deal with Meta Platforms worth over $14 billion further solidifies its market position.
- Debt Growth Risks: Despite rapid revenue growth, CoreWeave's long-term borrowings have nearly tripled from 2024 to 2025, exceeding $14.7 billion, which could pose a threat to the company's financial health, necessitating investor attention on its debt management capabilities.
- Profitability Yet to Improve: Although CoreWeave has not yet posted a net profit, its third-quarter loss of $110 million was the lowest in the past five quarters, indicating improvement in loss management alongside revenue growth, suggesting potential for future profitability.
See More
CoreWeave CEO Defends Spending Plans Amid Mixed Q4 Results
- Spending Plan Defense: CoreWeave CEO Mike Intrator defended the company's spending plans of $30B to $35B following a mixed Q4 earnings report, asserting that the enormous backlog reflects confidence in future growth despite market concerns.
- Mixed Earnings Report: The Q4 results were below expectations, leading to a 20% drop in CoreWeave's stock on Friday afternoon, indicating investor worries about the company's profitability, which could impact future financing capabilities.
- Market Expectation Discrepancy: Analysts had anticipated expenditures around $26.9M, but the company's significantly higher spending plans may raise questions about its financial health and sustainability in the eyes of investors.
- Future Revenue Targets: Despite short-term challenges, CoreWeave aims for $12B to $13B in revenue for 2026, demonstrating a long-term bullish outlook on surging AI demand and a strategy to capitalize on market opportunities through substantial investments.
See More
CoreWeave Shares Plunge After Disappointing Q4 Earnings Report
- Revenue Growth but Widening Losses: CoreWeave reported a 110% year-over-year revenue increase to $1.57 billion in Q4, surpassing estimates of $1.53 billion; however, it faced an operating loss of $89 million, a stark contrast to a profit of $113 million a year ago, indicating profitability challenges amid rapid growth.
- Heavy Interest Expenses Impact Finances: The company incurred $388 million in interest expenses, leading to a GAAP net loss of $452 million or $0.89 per share, significantly worse than the expected loss of $0.68, highlighting the risks associated with its reliance on debt financing.
- Future Outlook Below Expectations: CoreWeave's Q1 2026 revenue guidance of $1.9 billion to $2 billion, while double the previous year, fell short of the consensus estimate of $2.24 billion, raising investor concerns about its growth trajectory.
- Massive Capital Expenditure Plans: The company anticipates capital expenditures of at least $30 billion this year and forecasts a revenue run rate exceeding $30 billion by the end of 2027, although its high valuation and unproven business model create unease among investors.
See More
US Stocks Decline as AI Disrupts Markets
- Market Weakness: The S&P 500 index fell by 0.61%, the Dow Jones Industrial Average dropped by 1.17%, and the Nasdaq 100 index decreased by 0.41%, reflecting investor concerns over the disruptive potential of AI, which has put overall market sentiment under pressure.
- Producer Prices Rise: The US January Producer Price Index (PPI) increased by 0.5% month-over-month and 2.9% year-over-year, exceeding expectations, indicating rising inflationary pressures that could influence the Fed's interest rate decisions and increase market uncertainty.
- Strong Economic Data: Despite the market downturn, the February Chicago PMI unexpectedly rose to 57.7, signaling signs of economic expansion, which may alleviate some investor concerns about a slowdown in economic growth.
- Airline Stocks Under Pressure: With WTI crude oil prices reaching a 6.5-month high, airline stocks are generally declining, with United Airlines down over 8%, reflecting the potential threat of rising fuel costs on airline profitability.
See More
CoreWeave Misses Earnings Expectations in Q4 Report
- Revenue Growth: CoreWeave reported a 110% year-over-year revenue increase in Q4, reaching $1.57 billion, slightly exceeding expectations of $1.53 billion, indicating strong demand in the AI cloud computing sector.
- Widening Losses: Despite revenue growth, CoreWeave posted an operating loss of $89 million, a significant decline from a profit of $113 million in the same quarter last year, reflecting financial pressures amid rapid expansion.
- Capital Expenditure Outlook: The company expects capital expenditures to reach at least $30 billion in 2023, indicating ongoing investments in data center buildouts, but raising concerns about its financial health.
- Disappointing Future Guidance: CoreWeave's Q1 revenue guidance of $1.9 billion to $2 billion falls short of the market consensus of $2.24 billion, suggesting a lack of confidence in future growth prospects.
See More
COREWEAVE STOCK DROPS 16.7% FOLLOWING Q4 REPORT, PROJECTS CAPITAL EXPENDITURES TO DOUBLE TO $30 BILLION BY 2026
- Core Weave Shares Decline: Core Weave's shares fell by 16.7% following the release of their Q4 results.
- Future Expectations: Expectations are set for Capex to double by 2026, potentially reaching $30 billion.
See More
CoreWeave Leads the Charge in AI Cloud Computing
- Significant Revenue Growth: CoreWeave's revenue surged from $16 million in 2022 to over $1.9 billion in 2024, indicating strong growth potential in the AI cloud computing sector, with 2025 revenue estimates exceeding $5 billion, reflecting robust market demand for its services.
- Solid Customer Base: CoreWeave's long-term partnerships with major companies like Microsoft and OpenAI ensure its critical role in supplying AI computing power, while a deal with Meta Platforms worth over $14 billion further solidifies its market position.
- Debt Growth Risks: Despite rapid revenue growth, CoreWeave's long-term borrowings have nearly tripled from 2024 to 2025, exceeding $14.7 billion, which could pose a threat to the company's financial health, necessitating investor attention on its debt management capabilities.
- Profitability Yet to Improve: Although CoreWeave has not yet posted a net profit, its third-quarter loss of $110 million was the lowest in the past five quarters, indicating improvement in loss management alongside revenue growth, suggesting potential for future profitability.
See More
CoreWeave CEO Defends Spending Plans Amid Mixed Q4 Results
- Spending Plan Defense: CoreWeave CEO Mike Intrator defended the company's spending plans of $30B to $35B following a mixed Q4 earnings report, asserting that the enormous backlog reflects confidence in future growth despite market concerns.
- Mixed Earnings Report: The Q4 results were below expectations, leading to a 20% drop in CoreWeave's stock on Friday afternoon, indicating investor worries about the company's profitability, which could impact future financing capabilities.
- Market Expectation Discrepancy: Analysts had anticipated expenditures around $26.9M, but the company's significantly higher spending plans may raise questions about its financial health and sustainability in the eyes of investors.
- Future Revenue Targets: Despite short-term challenges, CoreWeave aims for $12B to $13B in revenue for 2026, demonstrating a long-term bullish outlook on surging AI demand and a strategy to capitalize on market opportunities through substantial investments.
See More
CoreWeave Shares Plunge After Disappointing Q4 Earnings Report
- Revenue Growth but Widening Losses: CoreWeave reported a 110% year-over-year revenue increase to $1.57 billion in Q4, surpassing estimates of $1.53 billion; however, it faced an operating loss of $89 million, a stark contrast to a profit of $113 million a year ago, indicating profitability challenges amid rapid growth.
- Heavy Interest Expenses Impact Finances: The company incurred $388 million in interest expenses, leading to a GAAP net loss of $452 million or $0.89 per share, significantly worse than the expected loss of $0.68, highlighting the risks associated with its reliance on debt financing.
- Future Outlook Below Expectations: CoreWeave's Q1 2026 revenue guidance of $1.9 billion to $2 billion, while double the previous year, fell short of the consensus estimate of $2.24 billion, raising investor concerns about its growth trajectory.
- Massive Capital Expenditure Plans: The company anticipates capital expenditures of at least $30 billion this year and forecasts a revenue run rate exceeding $30 billion by the end of 2027, although its high valuation and unproven business model create unease among investors.
See More
US Stocks Decline as AI Disrupts Markets
- Market Weakness: The S&P 500 index fell by 0.61%, the Dow Jones Industrial Average dropped by 1.17%, and the Nasdaq 100 index decreased by 0.41%, reflecting investor concerns over the disruptive potential of AI, which has put overall market sentiment under pressure.
- Producer Prices Rise: The US January Producer Price Index (PPI) increased by 0.5% month-over-month and 2.9% year-over-year, exceeding expectations, indicating rising inflationary pressures that could influence the Fed's interest rate decisions and increase market uncertainty.
- Strong Economic Data: Despite the market downturn, the February Chicago PMI unexpectedly rose to 57.7, signaling signs of economic expansion, which may alleviate some investor concerns about a slowdown in economic growth.
- Airline Stocks Under Pressure: With WTI crude oil prices reaching a 6.5-month high, airline stocks are generally declining, with United Airlines down over 8%, reflecting the potential threat of rising fuel costs on airline profitability.
See More
CoreWeave Misses Earnings Expectations in Q4 Report
- Revenue Growth: CoreWeave reported a 110% year-over-year revenue increase in Q4, reaching $1.57 billion, slightly exceeding expectations of $1.53 billion, indicating strong demand in the AI cloud computing sector.
- Widening Losses: Despite revenue growth, CoreWeave posted an operating loss of $89 million, a significant decline from a profit of $113 million in the same quarter last year, reflecting financial pressures amid rapid expansion.
- Capital Expenditure Outlook: The company expects capital expenditures to reach at least $30 billion in 2023, indicating ongoing investments in data center buildouts, but raising concerns about its financial health.
- Disappointing Future Guidance: CoreWeave's Q1 revenue guidance of $1.9 billion to $2 billion falls short of the market consensus of $2.24 billion, suggesting a lack of confidence in future growth prospects.
See More
