Why CoreWeave Stock Is in Freefall

Strong revenue couldn’t offset mounting losses as CoreWeave spent $6 billion more than it earned last year.

BY MELISSA ANGELL, SENIOR STAFF WRITER @MELISSKAWRITES

CoreWeave (Nasdaq: CRWV) plunged nearly 18 percent on Friday following its fourth quarter earnings report, despite the company touting a milestone: becoming the fastest cloud provider ever to reach $5 billion in annual revenue.

While the hyperscaler reported $1.57 billion worth of revenue, beating estimates of $1.55 billion, it was higher than expected losses and rising capital expenditures that spooked investors.

A large part of that is driven by the aggressive costs of building out AI infrastructure. The company added about 260 megawatts of power capacity during the last quarter, bringing its total volume to 850 megawatts.

“We will be bringing online roughly double the capacity of 2025, which means a corresponding increase in depreciation running ahead of associated revenue recognition,” CoreWeave CEO Michael Intrator said during its earnings call.

Adjusted net losses hit $284 million, up from $36 million year-over-year. The company held roughly $21 billion worth of debt on its balance sheet through the end of 2025.

CoreWeave shared that as it continues to build out AI infrastructure, it expects its capital expenditures will hit $30 billion, more than doubling from the year prior. “I want to frame that number in clear terms,” Intrator said. “This is a reflection of the extraordinary amount of contracted demand in front of us.”

Still, CoreWeave has reasons for optimism. The company has $66.8 billion worth of future contracts already committed, plans to expand its data center capacity by five gigawatts by 2030, and expects to bring in between $12 and $13 billion in revenue this year.

The company celebrated two acquisitions as part of its accomplishments, including acquiring Monolith AI, an AI engineering platform based in London, and Marimo, an AI notebook company (such companies focus on software and hardware exclusively dedicated to AI advancements.)

Investors, however, weren’t impressed. CoreWeave shares tumbled 18 percent on Friday, sinking to $80 in late morning trading.

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