CoreWeave Stock Falls as Meta’s AI Cloud Plans Raise Competition Fears

Quick overview

On Friday, the CoreWeave stock failed to stop its bearish trend and remained under pressure around the $81.74 level. It is showing more than 4 percent losses in the last 24 hours and 14.10 percent losses in the last five days. The reason for the bearish performance can be attributed to the news that Meta is planning to sell its own AI computer power. This news is negative for all AI cloud companies, including CoreWeave, because Meta is a very big company and if Meta starts its own cloud service and sells extra AI computing power to other companies, it could become a strong competitor.

This may push some customers to leave CoreWeave and other AI cloud companies and choose Meta instead. Looking at this whole situation, investors are afraid that perhaps Meta entry will reduce this company’s demand, prices will decrease, and profits in the AI cloud business will decrease.

Despite this, the strong earnings report of this CoreWeave company and a big order book still support its stock.

CoreWeave Business Is Growing Fast

On the positive side, CoreWeave made 2.078 billion dollars in sales during the first three months (Q1) of 2026, which increased by 112 percent compared to the same time last year. It means the CoreWeave business is growing at a good speed.

At this time, the company has a large order book, or backlog, of 99.4 billion dollars, which shows that customers have placed advance orders for the next several years, because of which the company sees strong and confirmed business in the future.

Moreover, this CoreWeave Adjusted EBITDA was 1.157 billion dollars, meaning the company made a profit of 1.157 billion dollars after excluding its normal business expenses. Meanwhile, the company is making 56 dollars in profit for every 100 dollars in sales. This is a very good number because it shows that the company core business is performing well.

CoreWeave Is Investing For The Future

For the full year 2026, the CoreWeave management has projected sales of 12 to 13 billion dollars. This means sales will grow at a good rate throughout the year. Last year, in 2025, they generated a total of 5.13 billion dollars.

On the other hand, CoreWeave is now planning to spend a very large amount on its personal growth. For example, they are planning to invest 31 to 35 billion dollars to build new data centers, purchase machines, and increase its power capacity far beyond 1 gigawatt. All of this is being done so that the company can build powerful computers for AI.

Despite so many positive things, the company is still at a loss because it is making such a large investment, but the non-GAAP metrics are improving, and in the long term this will be beneficial for them. All these figures have been taken from the company’s official reports and latest updates.

Experts Still Like CoreWeave Stock

Looking at all these positive things like strong earnings report and strong backlog, some experts like the stock. This can be witnessed by Rosenblatt bank who give a “Buy” rating to this stock and has kept the target price at 250 dollars. They say that the decline after the Meta news has become too much and is actually an opportunity.

Analysts say that the company strong backlog and customer deals can handle this competition. On the charts, the important support levels are around 72 to 73 dollars, and in the long-term view, 71 dollars is a strong support. The stock is now testing around 80 to 88 dollars.

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.

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