Shares of CoreWeave (NASDAQ: CRWV) tumbled more than 11% on Friday, the day after the artificial intelligence (AI) cloud infrastructure specialist released its first-quarter results. The drop came after a torrid run for the stock; heading into earnings, shares had nearly doubled in 2026.
What sent the stock lower wasn’t the headline numbers, which on the surface looked transformational. Revenue more than doubled. The contracted revenue backlog approached $100 billion. New deals with Anthropic, Meta, and other AI heavyweights stacked up.
But the market zeroed in on what came alongside the report. Second-quarter guidance came in light, capital spending plans crept higher, and the bottom line continued to deteriorate. With shares still up nearly 60% on the year, even after the slide, the question is whether this pullback is the entry point bulls have been hoping for.
The AI cloud company’s first-quarter bookings hit a record. But soft guidance and rising costs spooked the market.
Shares of CoreWeave (CRWV 11.49%) tumbled more than 11% on Friday, the day after the artificial intelligence (AI) cloud infrastructure specialist released its first-quarter results. The drop came after a torrid run for the stock; heading into earnings, shares had nearly doubled in 2026.
What sent the stock lower wasn’t the headline numbers, which on the surface looked transformational. Revenue more than doubled. The contracted revenue backlog approached $100 billion. New deals with Anthropic, Meta, and other AI heavyweights stacked up.
But the market zeroed in on what came alongside the report. Second-quarter guidance came in light, capital spending plans crept higher, and the bottom line continued to deteriorate. With shares still up nearly 60% on the year, even after the slide, the question is whether this pullback is the entry point bulls have been hoping for.
Image source: Getty Images.
Bookings remain impressive
The first-quarter top line confirmed what bulls have argued for months: demand for purpose-built AI infrastructure isn’t slowing. Revenue rose 112% year over year to $2.08 billion — a slight pickup from the 110% growth posted in the fourth quarter of 2025. And sales even rose 32% sequentially.
The bookings figure was the bigger headline, though. CoreWeave signed more than $40 billion of new commitments during the quarter, lifting its contracted revenue backlog to $99.4 billion from $66.8 billion at the end of 2025. And about 36% of that backlog is expected to convert into revenue within two years, with 75% landing within four.
Customer concentration looks to be easing, too.
CEO Michael Intrator said the company now has 10 clients committed to spending at least $1 billion each, and has a multi-year deal with Anthropic and an expanded $21 billion arrangement with Meta. For context, Microsoft alone accounted for 62% of CoreWeave’s revenue in 2024.
Why the dip may not be enough
Still, the gap between the bookings story and the income statement is widening, not closing. The first-quarter net loss came in at $740 million, up from $452 million in the fourth quarter and $315 million a year earlier.
Some of that pressure is structural. CoreWeave is laying down enormous amounts of new infrastructure, and each fresh deployment carries negative contribution margins until it ramps. CEO Intrator addressed this directly on the first-quarter earnings call, explaining: “[I]f you think of it as we’re running 50 megawatts, and we add 300 megawatts in a quarter, the impact on gross margin is going to be enormous.”
But build-outs like this are extremely capital-intensive. CoreWeave’s capital expenditures hit $6.8 billion in the quarter alone, and management nudged its full-year range up to $31 billion to $35 billion — against revenue guidance maintained at $12 billion to $13 billion. And servicing the build-out is getting expensive, too. Net interest expense in the period totaled $536 million, while the share count has roughly doubled year over year to about 527 million.
CoreWeave
Today’s Change
(-11.49%) $-14.81
Current Price
$114.03
Finally, the growth stock‘s valuation may be the biggest concern.
At a market capitalization of around $62 billion (about five times this year’s revenue forecast) for a company with no profits in sight, a heavily levered balance sheet, and a share count that keeps climbing, the stock’s recent slide may not be enough to make the risk-reward work. Sure, CoreWeave’s bookings narrative is impressive. But the stock still looks priced for something close to a perfect decade of execution, leaving too little margin for any stumbles along the way.
With that said, investors shouldn’t rule out the possibility that CoreWeave could turn out to be a great investment over the long haul from here. Given its highly leveraged balance sheet, the company could see explosive earnings growth once it becomes profitable. But the same leverage that could make the stock rewarding could also make things difficult if CoreWeave’s growth stalls at some point.
So is this a buy-the-dip moment for CoreWeave stock? For me, definitely not. For more aggressive investors who also believe these are still early days for the AI boom, maybe.
