CoreWeaveIt is (CRWV -1.19%) The stock plunged 54% over the past 12 months and hit a new 52-week low of $53.50 on October 22. In the last week alone, it fell about 13%. Let’s see why this Neocloud stock has fizzled – and if it becomes a worthwhile buy at these prices.
What does CoreWeave do?
CoreWeave was once a Ethereum minor, but he reused his Nvidia (NVDA -0.19%) GPUs to train AI models after the 2018 cryptocurrency market crash.
Image source: Getty Images.
Today, CoreWeave operates 51 data centers running more than a quarter of a million Nvidia GPUs to remotely process AI tasks. This streamlined approach allows it to process advanced AI workloads approximately 35 times faster and at 80% lower cost than large cloud platforms. Its largest clients include MetaplatformsMicrosoft, OpenAI and Anthropic. Nvidia also owns about 9% of CoreWeave, making it the company’s largest institutional investor.
CoreWeave went public last March. In 2025, its revenues soared 168% to $5.1 billion, and its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 154% to $3.1 billion. These explosive growth rates — driven by AI Market-‘s meteoric expansion dazzled investors, and the stock rose from its IPO price of $40 per share to a record high of $183.58 per share on June 20, 2025.
CRWV CoreWeave
$54.94-$0.66 (-1.19%)
NASDAQ · At 2:00 p.m. ET on 10/23/26
Why Did CoreWeave Stock Crash?
At its peak, CoreWeave’s enterprise value reached $91.1 billion, or 18 times the revenue it would generate in 2025. However, the company struggled to maintain this premium valuation because investors were concerned about its large losses and persistent dilution.
Even though its adjusted EBITDA was positive, the company posted a net loss of $1.2 billion in 2025. This huge gap was due to interest payments, equipment depreciation, leasing and acquisition costs, and stock-based compensation, all of which were excluded from its adjusted EBITDA.
To stabilize its liquidity, CoreWeave issued more shares and convertible debt. That’s why its share count is up 28% since its IPO and why it finished its most recent quarter with total liabilities of $72 billion and a jaw-dropping debt-to-equity ratio of 14.3. These glaring weaknesses suggested that its economic model was not yet sustainable, and the Fed’s rate hike in September – the first in three years – made its messy balance sheet even less attractive.
How fast is CoreWeave growing?
As of the end of Q2 2026, CoreWeave’s contracted revenue backlog had grown 246% year-over-year to $104 billion. For the full year, analysts expect its revenue and adjusted EBITDA to increase 151% to $12.9 billion, and adjusted EBITDA to increase 144% to $7.6 billion. But on a GAAP basis, they expect its net loss to widen from $1.2 billion to $2.9 billion.
Even though CoreWeave’s business is booming, it only had 1.85 GW of capacity at the end of June, compared to a contracted order book of 4.2 GW. It plans to lease more data centers and buy more GPUs to narrow that gap next year, but that expansion will be costly.
For 2027, analysts expect its revenue to increase 106% to $26.5 billion, its adjusted EBITDA to increase 121% to $16.7 billion, and its net loss to narrow slightly to $2.8 billion. At its current enterprise value of $76.2 billion, its revenue is four times next year’s revenue and six times its adjusted EBITDA. These low valuations should limit its downside potential, although near-term concerns over rising rates and large net losses weigh on its stock.
Why might this be a good time to buy CoreWeave?
CoreWeave clearly has the advantage of being a pioneer in the neocloud space; it’s strongly backed by Nvidia, and economies of scale are expected to occur as its business matures. I didn’t like the stock when it soared after its IPO, but I think it’s worth accumulating in the mid-50s, provided you can ignore the short-term noise and focus on its long-term growth potential.
Gn bussni
