Shares slumped 8.1% to $91.50 in pre-market trading on July 1, extending a brutal stretch that has erased more than 40% from CoreWeave's 52-week high. The selloff crystallizes a widening tug-of-war: a staggering order book on one side, and ballooning losses, monster capital spending, and fresh analyst skepticism on the other.
• The Revenue Doubled, But the Losses More Than Doubled Too
Q1 revenue hit $2.08 billion, more than doubling year-over-year and topping the $1.97 billion Wall Street expected. Yet net loss widened to $740 million from $315 million a year ago.
Interest expense alone doubled to $536 million in a single quarter , meaning the company is spending roughly a quarter of every revenue dollar just servicing debt. For shareholders, top-line growth is meaningless if each new dollar of sales deepens the red ink.
• A $35 Billion Spending Spree That Rattled Wall Street
CoreWeave projected $31 billion to $35 billion in 2026 capital spending, up from an earlier range of $30–$35 billion.
Total debt sits at $25.37 billion with capital-lease obligations of $10.29 billion on equity of just $4.76 billion. That leverage ratio — more than $7 in obligations for every $1 of equity — means even a modest shortfall in demand or a spike in borrowing costs could squeeze shareholders hard.
• The Analyst Who Slashed His Target in Half
D.A. Davidson's Gil Luria downgraded CoreWeave to Neutral in May, cutting his price target from $175 to $100, warning of thin margins, debt-heavy financing, and sizable insider selling. Separately, Evercore ISI slashed its 2027 earnings estimate to a loss of $4.30 per share from $1.14, even while keeping a $150 target. The divergence shows even bulls are bracing for deeper near-term pain.
• A Massive Backlog That Still Must Convert to Cash
Revenue backlog reached $99.4 billion, up nearly 50% in one quarter.
Only 36% is expected within two years and 75% within four. That means the bulk of CoreWeave's promise sits years away — and depends on continued AI spending by a concentrated customer roster including Meta, OpenAI, and Anthropic. Analysts no longer expect the company to break even during the foreseeable future. Until cash flow turns positive, every new data center is funded with someone else's money — and equity holders sit last in line.