CoreWeave (NASDAQ:CRWV), a cloud provider optimized for AI workloads, closed Friday at $79.56, down 18.51% after investors punished its Q4 results and heavy-spending outlook. The stock moved lower as widening losses, below-consensus Q1 revenue guidance, and plans to more than double 2026 capex raised margin and leverage concerns. Investors are also watching how effectively that aggressive buildout converts its large contracted backlog into profitable growth.
Trading volume reached 57.7 million shares, coming in about 109% above its three-month average of 27.7 million shares. CoreWeave IPO’d in 2025 and has grown 99% since going public.
How the markets moved today
The S&P 500 (SNPINDEX:^GSPC) slipped 0.43% to 6,879, while the Nasdaq Composite (NASDAQINDEX:^IXIC) fell 0.92% to 22,668 as growth stocks broadly lost ground. Within cloud computing services, industry peers Nvidia (NASDAQ:NVDA) closed at $177.19 (-4.16%) and Microsoft (NASDAQ:MSFT) finished at $392.74 (-2.24%) as investors reassessed high-multiple AI infrastructure names.
What this means for investors
CoreWeave reported a larger net loss even as revenue more than doubled in Q4. Investors particularly didn’t like the company’s first-quarter guidance for revenue of about $1.95 billion as well as soaring capital expenditure plans.
On the conference call for investors, management predicted about $6.5 billion in Q1 capex, and as much as $35 billion for the fully year. That will make the road to profitability even tougher, and had some investors bailing out of CoreWeave stock today.
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Howard Smith has positions in Microsoft and Nvidia and has the following options: short March 2026 $175 calls on Nvidia. The Motley Fool has positions in and recommends Microsoft and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
