Why CoreWeave Stock Was Tumbling Today

MrDecoder · 2026-02-27T22:14:40+00:00

CoreWeave's shares fell 19.8% after disappointing fourth-quarter earnings, revealing a wider operating loss of $89 million despite a 110% revenue increase. Concerns arose from high debt and interest expenses, along with a cautious outlook for future revenue growth and capital expenditures.

MrDecoder

2026-02-27 22:14:40

Abstract generation in progress

Shares of **CoreWeave **(CRWV 19.82%) were taking a dive today after the AI-focused neocloud company posted disappointing results in its fourth-quarter earnings report.

CoreWeave, a fast-growing company providing an AI cloud, posted a wider-than-expected loss, a disappointing first-quarter revenue outlook, and a large capex forecast.

As of 11:50 a.m., the stock was down 19.8% on the news.

Image source: Getty Images.

CoreWeave’s growth isn’t enough

CoreWeave continued to deliver strong growth with revenue up 110% to $1.57 billion, which edged out estimates at $1.53 billion.

However, investors have been concerned about widening losses, and the report only contributed to those worries as the business flipped to an $89 million operating loss from a profit of $113 million in the quarter a year ago.

CoreWeave is also burdened by heavy interest expense due to the debt it relies on to fund its data center buildouts. It reported $388 million interest expense in the quarter, which led to a generally accepted accounting principles (GAAP) net loss of $452 million or $0.89 per share, which was worse than estimates at a loss of $0.68.

The company said its revenue backlog grew to $66.8 billion, showing surging demand for its AI computing capacity, and CEO Michael Intrator added, “Demand continues to intensify as a broader set of customers adopt CoreWeave Cloud to run a diverse and growing set of workloads.”

Expand

NASDAQ: CRWV

CoreWeave

Today’s Change

(-19.82%) $-19.35

Current Price

$78.28

Key Data Points

Market Cap

$51B

Day’s Range

$78.05 - $84.38

52wk Range

$33.52 - $187.00

Volume

Avg Vol

27M

Gross Margin

49.23%

What’s next for CoreWeave

Looking ahead to 2026, CoreWeave disappointed with its first-quarter guidance, calling for revenue of $1.9 billion-$2 billion, about double the year before, which was well short of the consensus at $2.24 billion.

For the full year, CoreWeave called for revenue of $12 billion-$13 billion, which compared to the consensus at $12.03 billion.

The company also said it expected capital expenditures this year of at least $30 billion, and forecast a revenue run rate of more than $30 billion by the end of 2027.

Overall, the report showed CoreWeave continuing to grow fast, though not quite fast enough to please investors, while its widening losses and aggressive spending are a growing concern, especially given the stock’s high valuation and unproven business model.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.