CRWV Stock Heads to $65 Support as Spendings Soars, Despite Revenue Growth
CoreWeave, Inc. staged a powerful recovery into early 2026, but renewed concerns over soaring AI spending, margins, and leverage have pushed
Quick overview
- CoreWeave, Inc. experienced a strong recovery in early 2026 after a significant decline in 2025, driven by improved investor sentiment and a resurgence in AI-related equities.
- Despite reporting robust fourth-quarter revenue of $1.572 billion, the company faced a net loss of $452 million, highlighting ongoing profitability challenges amid high capital expenditures.
- Concerns over CoreWeave's spending strategy have resurfaced, with analysts debating whether the company is investing too much or too little in infrastructure amid a fragile market environment.
- A pending class action lawsuit and delays in infrastructure deployment add to investor caution, as the company navigates its debt structure and seeks to prove long-term profitability.
CoreWeave, Inc. staged a powerful recovery into early 2026, but renewed concerns over soaring AI spending, margins, and leverage have pushed CRWV stock back under pressure.
A Dramatic Recovery After a 2025 Collapse
CoreWeave’s early 2026 performance stands in sharp contrast to the second half of 2025, when the stock lost roughly two-thirds of its value amid mounting concerns over debt levels and execution risk. After bottoming out, shares rebounded strongly, recently climbing toward $115 as investor sentiment improved.
Part of that recovery was fueled by a broader resurgence across AI-related equities. A strong earnings report from Taiwan Semiconductor Manufacturing Company helped reignite confidence in hardware demand and global compute infrastructure investment. The positive read-through lifted several AI infrastructure names, with CoreWeave among the most aggressive rebound plays.
However, that optimism has proven fragile. Even sector leaders such as Nvidia have struggled to sustain post-earnings gains, reinforcing the market’s growing sensitivity to valuation and capital intensity concerns.
Earnings: Growth Meets Heavy Costs
CoreWeave reported fourth-quarter revenue of $1.572 billion, reflecting robust demand for AI compute capacity. Yet profitability remains elusive. The company posted a net loss of $452 million, alongside net interest expense of $388 million.
Year-end revenue backlog reached $66.8 billion, representing contracted revenue still to be recognized—a figure management highlights as validation of long-term demand visibility. Cash and equivalents stood at $3.127 billion at the close of 2025.
CEO Michael Intrator emphasized that the company chose “to build faster” in order to accelerate infrastructure deployment, warning that the first quarter would likely represent the low point for margins. CFO Nitin Agrawal told analysts that capital spending aligns with already signed customer contracts.
Still, the numbers reveal the central tension in the investment case: strong top-line growth paired with elevated capital expenditures and interest burdens.
Capex Debate Returns
The very issue that drove last year’s selloff—whether CoreWeave is spending too little or too much—has resurfaced. Analysts have noted that the stock has been criticized at different times for insufficient capacity investment and for excessive capital intensity.
If infrastructure ramps smoothly and demand remains robust, the backlog could justify the aggressive buildout. However, if deployment delays emerge or credit conditions tighten, the heavy spending could stretch profitability timelines further.
Investors are closely monitoring whether new data center power capacity and GPU installations materialize on schedule. Financing plans for 2026 expansion are also under scrutiny, particularly as macro conditions remain sensitive to inflation and interest rate trends.
Technical Picture Reinforces Uncertainty
Technically, CoreWeave remains in a fragile position. The 20-week moving average has repeatedly acted as resistance, both during last year’s failed rally and again in recent weeks. This week CRWV stock retested the 20 SMA before earnings, but failed and has tumbled lower after earnings. Until the stock can reclaim and hold above that level, upside moves are likely to be treated as tactical rather than structural.
CRWV Stock Daily – The 20 SMA Rejected the Price Again
Above that, the $150 zone—last tested in October—remains a major hurdle. On the downside, a weak earnings report has reopened the path toward the late-2025 lows near $65.
For now, volatility—not confirmation—defines the chart.
Legal and Operational Overhang
Adding to investor caution is a pending class action lawsuit filed by shareholder rights firm Hagens Berman. The suit alleges that CoreWeave misled investors regarding its ability to scale infrastructure and meet ambitious revenue targets.
Specific attention has centered on delays at a Denton, Texas data center cluster, reportedly months behind schedule. Following disclosures of those delays, CoreWeave’s market capitalization dropped sharply. While legal proceedings may take time to resolve, their existence contributes to perceived execution risk.
Debt Structure: Protection or Pressure Point?
Management has emphasized that much of the company’s debt sits within special purpose vehicles structured similarly to project finance models. Long-term agreements with customers such as Microsoft Corporation and Meta Platforms, Inc. help direct cash flows toward operating expenses and lenders.
In theory, this framework isolates project-level risk. However, AI infrastructure differs from traditional utilities. Hardware cycles evolve quickly, utilization rates can fluctuate, and asset resale values remain uncertain. If technological shifts outpace depreciation schedules, project-level protection may not fully shield enterprise risk.
Strategic Validation, Lingering Financial Questions
CoreWeave’s involvement in U.S. Department of Energy initiatives, including the Genesis mission, reinforces its strategic importance within the AI compute ecosystem. Such partnerships enhance credibility and long-term positioning.
Yet strategic validation does not immediately resolve concerns about leverage, margin volatility, or sustained capital intensity. The 2026 rebound reflected renewed confidence, but the latest pullback underscores a persistent theme: investors demand proof that rapid expansion will translate into durable profitability.
Until margins stabilize and infrastructure execution proves consistent, CoreWeave’s stock may remain highly sensitive to spending headlines and broader AI sentiment swings.
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