Seeking Alpha downgraded AI cloud provider CoreWeave to Hold on August 17, 2026. Analysts cited significant risks linked to the company's aggressive financial strategy.
Total debt has surged to over $35 billion to fund massive expansion plans. Interest expenses reached $640 million in the second quarter.
The company reports negative free cash flow despite strong revenue growth and a substantial backlog. Analysts are questioning the sustainability of this growth model compared to less leveraged peers in the AI cloud sector.