Shares of CoreWeave slid 6.3% to $100.51 Monday, extending a brutal post-earnings selloff, after DA Davidson analyst Gil Luria slashed his rating from Buy to Neutral and cut his price target from $175 to $100. The downgrade landed just as the stock sat at $107.30 on Friday's close , and the new target now sits right at today's trading price — a signal that the analyst sees little upside left.
• Revenue Doubled, but the Bottom Line Got Worse
CoreWeave posted $2.08 billion in Q1 revenue, beating the $1.97 billion Wall Street expected, with sales more than doubling from $981.8 million a year earlier. But the earnings miss was severe: EPS came in at -$1.40 versus the -$0.91 forecast — a roughly 54% miss.
Adjusted operating income collapsed to just $21 million — a 1% margin — down from $163 million and 17% a year ago. In plain terms, the company is spending so aggressively to build data centers that almost none of its revenue is turning into profit.
• Guidance Disappointed Despite a Massive Backlog
CoreWeave guided Q2 revenue to $2.45–$2.6 billion, but the midpoint of $2.53 billion trailed the $2.69 billion analysts expected. Management maintained full-year revenue guidance of $12–$13 billion and pointed to a $99.4 billion revenue backlog, up nearly 50% in a single quarter. The disconnect — enormous future commitments but soft near-term numbers — is exactly what spooked investors.
• A $31–$35 Billion Spending Plan Keeps the Pressure On
CoreWeave raised its 2026 capital expenditure forecast to $31–$35 billion, up from $30–$35 billion previously , citing rising component costs. Year to date, the company has raised more than $20 billion in debt and equity to fund the buildout.
Some analysts warn CoreWeave may not generate positive free cash flow — actual cash left after all spending — until 2029.
• Insider Sales Add to the Overhang
CEO Michael Intrator sold 200,000 shares for ~$21.1 million on May 12, and Chief Strategy Officer Brian Venturo sold 374,000 shares for ~$43.4 million the day before — both under pre-arranged plans, but the optics sting during a 22% weekly drawdown.
The core tension is clear: CoreWeave is building at a staggering pace into real demand, with 10 customers each committed to spend at least $1 billion. But until the debt-fueled buildout converts into actual profits, investors are being asked to pay for a promise — and today, fewer of them are willing.