Particle.news
Download on the App Store

CoreWeave Stock Slides as Hot Growth Collides With Rising Costs

Softer guidance with soaring expenses shifted focus to execution risks.

Overview

  • Shares fell more than 10% in early May after Q1 results and a weaker Q2 revenue outlook.
  • Revenue rose 112% year over year to $2.1 billion in Q1, even as losses widened.
  • The company said its contracted backlog is near $100 billion for multi-year AI compute demand.
  • Operating costs more than doubled to about $2.2 billion, and management expects higher capital spending next quarter.
  • Analysts and market writers flagged pressure from heavy spending and debt, while others pointed to possible long-term upside if key metrics improve.