CoreWeave Shares Plunge 18.5% After Q4 Earnings Miss
CoreWeave's stock (CRWV) suffered its worst single-day drop since going public, tumbling 18.5% on February 27 after reporting disappointing Q4 results. While revenue surged 110% year-over-year to $1.57 billion, investors focused on ballooning losses and weak forward guidance.
The AI infrastructure provider's net loss widened dramatically to $284 million from $36 million in the prior-year period. Adjusted operating margins compressed to 6% from 16%, reflecting aggressive expansion costs. CEO Michael Intrator defended the strategy: "We made the decision to build faster so we can deliver more infrastructure."
Notable bright spots included a quadrupled backlog reaching $66.8 billion, including a $5 billion Meta contract. However, 2026 capex guidance of $30-35 billion—double 2023's $14.9 billion—signaled continued heavy spending ahead.
