CoreWeave Stock Plunges 20% as Weak Guidance Sparks Margin Concerns

Key Stats for CoreWeave Stock

• Price change for CoreWeave stock: -20%
• $CRWV Share Price as of Feb. 27: $80
• 52-Week High: $187
• $CRWV Stock Price Target: $125

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What Happened?

CoreWeave (CRWV) stock dropped sharply on Friday after the AI cloud infrastructure company reported fourth-quarter earnings that missed margin expectations.

• While the company beat revenue estimates with $1.6 billion in Q4 revenue (up 110% year-over-year), investors focused on weaker-than-expected first-quarter guidance.
• The company guided Q1 adjusted operating income between $0 and $40 million, well below analyst expectations.
• CoreWeave also announced plans to spend $30 billion to $35 billion on capital expenditures in 2026, more than double last year’s spending, raising concerns about near-term profitability.

CEO Mike Intrator explained that the company is investing heavily to meet customer demand, with substantially all of the 2026 capital expenditure tied to already-signed customer contracts.

• CoreWeave’s revenue backlog grew to $66.8 billion, up from $55.6 billion last quarter.
• Despite the massive contracted demand, CoreWeave expects margins to compress in early 2026 as it brings new data centers online.
• The company said margins will start in the low single digits in Q1 before expanding throughout the year to reach low double digits by Q4.

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What the Market Is Telling Us About CoreWeave Stock

The market’s negative reaction shows investors are worried about CoreWeave’s near-term margin pressure despite its strong revenue growth and massive backlog.

Goldman Sachs analyst Gabriela Borges maintained a neutral rating, noting that the stock decline reflects “near-term margin pressure driven by the timing of capacity ramps.”

Morgan Stanley analyst Keith Weiss also remained cautious, waiting for “more clarity on the unit economics” before getting more bullish on CoreWeave stock.

However, Wells Fargo analyst Michael Turrin kept his overweight rating, calling CoreWeave the leading infrastructure play in AI with a $125 price target, implying 28% upside.

CoreWeave stock faces a critical test as investors weigh its long-term potential against short-term margin challenges.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!