CoreWeave (CRWV) Stock Drops From $137 High in 2026 — Weak Q2 Guidance and Rising GPU Costs Trigger Sell-Off Despite Strong AI Demand

Quick overview

CoreWeave stock has not been able to perform well for the past few days and it has lost a lot of its value. Last time on May 6, it hit its highest level which was 137.98 dollars, but after that it started losing its value. While writing this article, the stock is trading at 107.75, which shows a loss of 6.06 percent on the day.

There is no doubt that this company is growing very fast, and it has shown very good sales in its first quarter, but the stock is continuously falling and there are many reasons for this which we will discuss today.

If we talk about the first reason, then it could be the weak guidance for the next quarter (Q2). CoreWeave said it expects to make only $2.45 to $2.6 billion. Wall Street was hoping for higher, around $2.7 billion. This difference has worried investors, and they now expect the company’s growth is going to slow down.

Rising Costs and Long-Term Growth Outlook

Another reason that is sending this company’s stock downward is that the company did not increase its full-year 2026 sales target. They kept it at the same level, which is within 12 to 13 billion dollars. So, because of this, investors have become a little cautious because investors like companies to increase their targets if the company is already growing fast like CoreWeave.

Apart from all these things, one more reason that has damaged the company’s stock is the huge increase in spending. The company has raised its spending plan for this year to $31-35 billion. This big increase is because the company is building more data centers and buying more GPUs.

So this large increase in spending has caused the company to lose 740 million dollars in their first quarter. Despite the fact that the company’s business is growing very well, these kinds of spending plans and big losses have worried the market and pushed the stock lower.

Information about the company

CoreWeave is a company that provides powerful computers (called GPUs) in the cloud specially for artificial intelligence (AI) work. This company was started many years ago as a crypto mining operation, but now its focus has expanded to many areas, such as helping big AI companies train and run their smart models.

You will be very surprised to hear this, this company has big clients like Meta, Anthropic, OpenAI, Microsoft, and many financial companies also use its services because this company provides very fast and strong performance compared to normal cloud services.

Strong Growth and High Demand

Now, if we discuss some positive things, the first one is its first quarter earnings report, which shows that the CoreWeave company made approximately 2.08 billion dollars in sales in its first quarter. These are very good figures, in fact, they are more than double what was made in the same period last year.

Apart from this, this company also has a very large list of future orders, which is worth approximately 90 billion dollars. So these things clearly show that there is a very high demand for this company’s services in the market, which is why people are already booking their services for the coming years.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.