CRWV Stock Heads to $70 as Rising Competition Clouds $99 Billion AI Backlog

Quick overview

CoreWeave stock has come under renewed selling pressure as fears over Meta’s potential cloud ambitions and intensifying AI infrastructure competition overshadow rapid revenue growth and a massive order backlog.

CoreWeave Stock Selloff Deepens as Meta Cloud Threat Raises Fresh Competition Fears

CoreWeave stock has suffered another sharp setback as growing competition concerns overshadow the company’s strong revenue growth and expanding demand for AI infrastructure. Investor sentiment deteriorated after reports that Meta Platforms is developing an internal cloud infrastructure business, raising fears that one of CoreWeave’s major customers could eventually become a direct competitor.

CoreWeave Selloff Accelerates

CoreWeave shares remained under heavy pressure after the reports surrounding Meta Compute emerged.

The market reaction has been severe, with the stock breaking below key moving averages and moving closer to the next major technical support area near $65.

Although some analysts believe concerns over Meta’s cloud ambitions may be exaggerated, investors appear increasingly worried that the world’s largest technology companies could eventually reduce their dependence on third-party AI infrastructure providers.

That possibility threatens to undermine part of CoreWeave’s investment narrative and has contributed to a sharp deterioration in market sentiment.

Strong Revenue Growth Takes a Back Seat

The selloff is particularly notable because CoreWeave recently delivered exceptionally strong financial results.

First-quarter revenue surged to $2.08 billion, more than doubling from $982 million a year earlier as demand for high-performance computing and AI infrastructure continued to expand.

CoreWeave also reported a massive $99.4 billion revenue backlog, supported by long-term commitments from major customers and technology companies.

The company maintains strategic relationships with Meta, NVIDIA, Anthropic, Cohere, Jane Street, and Mistral, reinforcing its position as a significant provider of AI computing capacity.

However, these strengths have failed to protect the stock from the latest wave of selling.

Profitability Concerns Add to Pressure

CoreWeave’s aggressive expansion also comes with significant financial risks.

The company secured a multibillion-dollar term loan facility in May 2026, while reporting a negative net income margin of 36% for the quarter ended March 31, 2026.

The combination of heavy investment requirements, substantial financing needs, and ongoing losses could leave the company more vulnerable if growth expectations weaken.

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 – MAs Turn into Resistance

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 Faces a More Difficult Test

Investors are increasingly questioning whether CoreWeave can maintain its rapid expansion as major technology companies develop more internal infrastructure.

Even with strong revenue growth and a substantial backlog, concerns over customer concentration, competition, profitability, and valuation are weighing heavily on the stock.

If fears surrounding Meta and other potential competitors continue to intensify, CoreWeave shares could remain vulnerable to further downside.

For now, the move toward the $65 support area highlights how quickly sentiment can deteriorate when investors begin questioning the durability of an AI infrastructure growth story.

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.

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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