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CoreWeave shares decline post heavy spending alarming investorsThe loss expanded to 89 cents a share in the December quarter, the company said. Analysts had estimated around 72 cents on an average, as per data compiled by Bloomberg, the news agency reported. Its revenue increased to $1.57 billion from the $1.55 billion estimate.By CNBCTV18.com February 27, 2026, 7:37:53 AM IST (Published)3 Min ReadCoreWeave Inc. shares declined as much as 13% in late trade post a bigger-than-expected loss and boosting capital expenditures.

The loss expanded to 89 cents a share in the December quarter, the company said. Analysts had estimated around 72 cents on an average, as per data compiled by Bloomberg, the news agency reported. Its revenue increased to $1.57 billion from the $1.55 billion estimate.

The company, an operator of AI data centers, also said that 2026 capital spending will be $30 billion to $35 billion — a bigger figure than analysts anticipated.

CoreWeave, part of a group of companies known as neoclouds, rents out access to powerful chips and computing resources. Demand has surged for its services, and the company boasts contracts with clients such as OpenAI, Meta Platforms Inc. and Microsoft Corp.

But expanding its capacity is costly — and there have been some hiccups. In November, the company lowered its annual revenue forecast due to a delay in fulfilling a customer contract. CoreWeave has been taking on more debt to fund projects.

In an interview, Chief Executive Officer Mike Intrator said CoreWeave only borrows money to buy equipment, such as AI processors, after lining up customers to use it.

“Yes, we are going to have a massive amount of spending,” he said. “But there’s no way that anyone would lend us that money if we weren’t already in a position where we have sold that to the Microsofts and the Metas and the Nvidias and the Googles.”

The company is “unapologetic” about operating that way, he said. “That is a fundamental investment thesis that people have to get comfortable with our company. It’s what we do.”

Investors may still need more convincing. CoreWeave shares fell as low as $84.64 in extended trading after the report was published. The stock had been up 36% this year, closing at $97.63.

Sales will be $12 billion to $13 billion this year, CoreWeave said, with roughly $2 billion coming in the first quarter. Analysts had predicted 2026 revenue of $12.1 billion and first-quarter sales of $2.24 billion. Adjusted operating income will range from the break-even point to $40 million, the company said.

CoreWeave, which held its initial public offering in March 2025, has attracted investors looking to bet on the explosion in artificial intelligence spending. The Livingston, New Jersey-based company is a close partner of Nvidia Corp., the leading maker of AI chips.

Nvidia invested an additional $2 billion in CoreWeave last month, aiming to speed up an effort to add more than 5 gigawatts’ worth of AI computing capacity by 2030. As part of the collaboration, CoreWeave will be among the first to deploy forthcoming Nvidia products.

The company has also been adding to its debt load and is looking to raise about $8.5 billion from banks including Morgan Stanley and Mitsubishi UFJ Financial Group Inc. to help finance a build-out of cloud computing capacity for Meta, people familiar with the matter said earlier this week.

CoreWeave has dramatically ramped up borrowing in recent years, joining an industrywide debt binge that has unsettled some investors. The company’s adjusted leverage, a measure of debt to earnings, stood at about 6.9 times as of Sept. 30, and it’s expected to burn cash for at least the next 18 months amid heavy capital expenditures, according to a recent Moody’s Ratings report.

With inputs from BloombergContinue ReadingTagsearnings