Full Breakdown
CoreWeave Stock Collapse Highlights Valuation and Liquidity Concerns
By Drooid · · How we work
CoreWeave Stock Collapse
CoreWeave’s (CRWV) shares have fallen sharply, sinking about 13% over a recent week and reaching a 52-week low of $53.50 later this month. Over the past 12 months the stock is down 54% from its record high of $183.58 reached on June 20, 2025, when the company’s rapid AI-related growth propelled the price from its IPO level of $40 per share.
Financial Profile and Balance-Sheet Pressures
The company posted a GAAP net loss of $1.2 billion in 2025 despite a positive adjusted EBITDA, a gap driven by interest expense, equipment depreciation, lease and acquisition costs, and stock-based compensation that are excluded from the adjusted metric. To shore up liquidity, CoreWeave issued additional shares and convertible debt, expanding its share count by 28% since the IPO and leaving it with $72 billion in total liabilities and a debt-to-equity ratio of 14.3. The Federal Reserve’s September rate hike—the first in three years—further strained the company’s financing environment.
Valuation, Investor Sentiment, and Market Context
At an enterprise value of $76.2 billion, CoreWeave now trades at roughly four times projected 2027 sales and six times projected adjusted EBITDA, a steep discount from its peak valuation of $91.1 billion (about 18 × 2025 revenue). Nvidia, which holds about 9% of CoreWeave, remains its largest institutional shareholder. Analysts note that the low multiples limit downside risk, but near-term concerns about rising interest rates and persistent net losses continue to weigh on investor sentiment.
Growth Prospects and Analyst Forecasts
CoreWeave’s contracted revenue backlog grew 246% year-over-year to $104 billion by the end of Q2 2026. Analysts project full-year 2026 revenue of $12.9 billion and adjusted EBITDA of $7.6 billion, with GAAP net loss widening to $2.9 billion. For 2027, revenue is expected to rise 106% to $26.5 billion, adjusted EBITDA to $16.7 billion, and the GAAP net loss to narrow slightly to $2.8 billion. The company plans to expand capacity beyond its 1.85 GW of GPU power at the end of June to meet a contracted backlog of 4.2 GW, a move that will require significant capital outlays.