CoreWeave, Inc. (CRWV)
Will Perplexity's AI Workloads Accelerate CRWV's Next Leg of Expansion?
CoreWeave partners with Perplexity in a multi-year deal to host AI inference workloads on NVIDIA GB200 clusters, boosting its AI cloud ecosystem.
CoreWeave's CapEx Shock Spooks The Market
CoreWeave plans $30–35 billion in 2026 capex after spending $14.9 billion in 2025, triggering investor concerns about funding sustainability. The stock dropped from the high $90s to the mid-$70s, reflecting worries about capital structure rather than weakening AI infrastructure demand. Q1 interest expense guidance of $510–590 million highlights the growing burden of financing CoreWeave's aggressive infrastructure expansion.
What's Next For CoreWeave Stock?
CoreWeave (CRWV) – a cloud platform that oversees extensive AI infrastructure and software – has entered a 5-day downturn, accumulating losses of -26% during this timeframe. The company's market capitalization has decreased by around $13 billion in the last 5 days and is currently at $37 billion.
CoreWeave Lands Perplexity in New AI Cloud Deal, Stock Jumps 5.7% Pre-Market
CoreWeave (NASDAQ:CRWV) is adding another high-profile name to its customer roster.
CoreWeave Looks Broken
CoreWeave, Inc. reported explosive revenue growth but missed EPS estimates, with losses driven by aggressive infrastructure expansion and surging interest expense. Despite a 25% post-earnings stock drop, I maintain a Buy rating for CRWV, citing a $66.8 billion contracted backlog that underpins multi-year revenue visibility and de-risks growth. CRWV management guides for $12–$13 billion 2026 revenue and expects margins to trough in Q1 before a sequential ramp, supported by long-term customer commitments.
CoreWeave Is Attractively Valued, But Execution Is Crucial
CoreWeave is rated a Buy, supported by robust revenue visibility, a $66b backlog, and nearly all 2026 capacity allocated under take-or-pay agreements. CRWV guides for a $17-19b exit run-rate in 2026 and $30b+ in 2027, with sequential growth re-accelerating and near-term demand materially de-risked. Execution and leverage risks exist due to heavy capex ($20-25b in 2026), but most spending is contract-backed, and unit economics remain strong with mature EBITDA margins near 70%.
CoreWeave: Unapologetic Capex Meets Unforgiving Economics
CoreWeave, Inc. reported a widening net loss in Q4, with 2026's $30-35 billion capex guidance implying persistent negative FCF and continued reliance on external funding to finance growth investments and operations. The combination heightens ROI compression risks and limits visibility into profitability and self-sufficiency at scale, overshadowing an otherwise strong revenue backlog of $66.8 billion supported by resilient end-market compute demand. CoreWeave's execution risks remain elevated, with near-term pressures on the monetization framework outlined at its March 2026 Investor Day Presentation limiting catalysts for a sustained valuation recovery from current levels.
CoreWeave: Bargain In The Rubble
CoreWeave reported Q4 results and FY26 outlook on Thursday after the bell, dragging the stock down as much as 21% on Friday trading. Management is guiding FY26 to the $12B-$13B range, versus estimates closer to $12B, and reported a jump in backlog from $55.6B to $66.8B. CapEx guidance surged, as well, to $30B–$35B, more than double the $14.9B spent in FY25, and net losses widened, again.
More Downside For CoreWeave Stock?
CoreWeave stock dropped 19% on Friday to $79.56 and has continued to slide another 4% in pre-market trading. This sharp Friday decline was primarily triggered by a broader sell-off in the AI infrastructure sector and investor concerns regarding sustainable capital expenditure levels among major cloud providers.
CoreWeave: Focus On Prospects, Not Growing Pains
CoreWeave reported strong revenue growth but missed margin and income targets, leading to a sharp stock selloff. The AI cloud company is experiencing significant growing pains as it rapidly scales to meet hyperscaler demand, adding ~260 MW of new power in Q4. The market is concerned about low margins and high-interest expenses from substantial borrowing to fund AI GPU data center expansion.
Investors Hated CoreWeave's Earnings. It Might Be Even Worse Than They Realize
Artificial intelligence (AI)-focused cloud infrastructure provider CoreWeave ( NASDAQ:CRWV ) released its fourth quarter earnings on Thursday, and the market's reaction was swift and brutal.
CoreWeave: Another CapEx Tantrum
CoreWeave, Inc. delivered 110% Y/Y revenue growth and a 342% Y/Y backlog increase, driven by surging GPU compute demand and major OpenAI contracts. Despite a 9% post-earnings sell-off over CapEx and profitability concerns, I view CRWV's preferred Nvidia partnership and aggressive CapEx as key competitive advantages. Surge in interest expenses and $30-35B CapEx guidance are raising profitability concerns for CoreWeave in the short term. However, the long term growth run-way is promising as industry CapEx soars.
