CRWV Stock Heads to $65 after Breaking Key $90 Support on News of Meta Cloud Entry
CoreWeave stock has come under selling pressure again as fears over emerging competition overshadowed another quarter of explosive revenue growth and expanding AI infrastructure demand.
Quick overview
- CoreWeave shares have faced significant selling pressure due to concerns over competition from Meta Platforms, which is developing its own cloud infrastructure.
- Despite reporting strong Q1 revenue growth of $2.08 billion and a substantial revenue backlog of $99.4 billion, investor sentiment has shifted negatively.
- The company's net loss widened to $740 million, driven by rising infrastructure costs and aggressive expansion spending, leading to profitability concerns.
- CoreWeave continues to expand its infrastructure, surpassing 1 gigawatt of active power capacity and securing major financing support, including an $8.5 billion loan facility.
CoreWeave stock has come under selling pressure again as fears over emerging competition overshadowed another quarter of explosive revenue growth and expanding AI infrastructure demand.
CoreWeave Selloff Accelerates as Meta Cloud Concerns Weigh on Sentiment
CoreWeave Inc. CoreWeave, Inc. shares remained under heavy pressure on July 1 after reports that Meta Platforms, Inc. is developing an internal cloud infrastructure business known as “Meta Compute.” The news fueled concerns that one of CoreWeave’s largest customers could eventually become a direct competitor, triggering a sharp decline in investor confidence.
The stock has now broken below the important $90 support level and is increasingly approaching its next major technical support near $65. Although some analysts argue that fears surrounding Meta’s cloud ambitions may be overstated, the market reaction highlights growing concerns over rising competition in the AI infrastructure sector.
Strong Financial Performance Overshadowed
The sharp selloff comes despite CoreWeave delivering exceptionally strong first-quarter results. Revenue surged to $2.08 billion, more than doubling from $982 million a year earlier as demand for high-performance computing infrastructure continued to expand.
The company also reported a massive revenue backlog of $99.4 billion, reflecting long-term commitments from enterprise customers and leading technology companies. Strategic relationships with Meta, NVIDIA, Anthropic, Cohere, Jane Street, and Mistral continue to position CoreWeave as a major provider of AI computing capacity.
However, investors have shifted their attention away from these strong fundamentals. Instead, concerns that large technology companies may increasingly build their own infrastructure have overshadowed the company’s impressive growth story, raising questions about future customer demand and valuation. As a result, market sentiment has deteriorated rapidly, leaving CoreWeave vulnerable to further downside if selling pressure persists.
Stock Reverses Sharply Breaks Support
Despite the strong top-line performance, CoreWeave shares reversed lower, falling 12% during regular trading as investors focused on profitability concerns and rising debt costs.
The company posted a net loss of $740 million for the quarter, widening significantly from a $315 million loss a year earlier. Operating losses also expanded to $144 million as infrastructure spending, expansion costs, and financing expenses accelerated.
CRWV Chart Daily – Breaking Below the 200 SMA
Interest expense climbed sharply to $536 million from $264 million, highlighting the growing burden tied to the company’s aggressive expansion strategy.
While adjusted EBITDA rose to $1.16 billion, margins declined to 56% from 62%, suggesting that rapid scaling is beginning to pressure profitability.
Expansion Strategy Remains Aggressive
CoreWeave continued expanding its infrastructure footprint during the quarter, surpassing 1 gigawatt of active power capacity and increasing contracted power above 3.5 gigawatts.
The company also secured major financing support, including an $8.5 billion delayed draw term loan facility and a $2 billion investment from NVIDIA. Long term, CoreWeave aims to expand beyond 5 gigawatts of computing infrastructure by 2030.
CoreWeave Q1 Highlights
Revenue Growth Accelerates
- CoreWeave reported Q1 2026 revenue of $2.08 billion, more than doubling from $982 million a year earlier.
- Growth was driven by rising demand for AI cloud infrastructure and large-scale compute workloads.
- The company’s revenue backlog climbed to $99.4 billion, reflecting strong long-term contracted demand from enterprise and hyperscale customers.
- The backlog provides significant future revenue visibility as AI infrastructure spending continues expanding.
Major Customer Wins Support Momentum
CoreWeave continued expanding relationships with major technology firms during the quarter.
New agreements included:
- A $21 billion commitment from Meta Platforms signed in March.
- A new multi-year agreement with Anthropic.
- Expanded partnerships with Cohere, Jane Street, and Mistral.
These deals reinforce CoreWeave’s growing importance within the AI computing ecosystem.
Losses Widen Despite Strong Sales
- Operating loss widened to $144 million, compared with $27 million a year ago.
- Net loss expanded sharply to $740 million from $315 million in the prior-year quarter.
- Rising infrastructure costs and aggressive expansion spending continued to pressure profitability.
- Interest expense surged to $536 million, up from $264 million, highlighting the growing burden of financing large-scale expansion projects.
- Adjusted EBITDA rose strongly to $1.16 billion from $606 million, though margins declined:
- Adjusted EBITDA margin fell to 56% from 62%.
- Adjusted operating income declined to $21 million from $163 million.
Infrastructure and Power Expansion Continue
- CoreWeave surpassed 1 gigawatt of active power capacity during the quarter.
- Contracted power capacity increased by more than 400 megawatts, bringing the total above 3.5 gigawatts.
- Management aims to exceed 8 gigawatts of capacity by 2030, signaling extremely aggressive long-term expansion plans.
Financing and NVIDIA Support Strengthen Position
- The company secured an $8.5 billion delayed draw term loan facility to support future infrastructure growth.
- NVIDIA completed a $2 billion Class A stock investment in CoreWeave.
- CoreWeave also expanded its long-term relationship with NVIDIA to support additional compute deployment and infrastructure scaling.
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