Why Is CoreWeave (CRWV) Stock Down 11% Premarket? Rising Debt and Wider Loss

CoreWeave, Inc. (CRWV) shares are under pressure in premarket trading on Friday, February 27, 2026, sliding more than 11% after the AI-focused cloud infrastructure provider reported its fourth-quarter 2025 earnings.

While the company managed to beat revenue expectations, investors were rattled by a wider-than-expected loss per share, disappointing first-quarter guidance, and an aggressive capital expenditure plan that signals significant cash burn ahead.

The after-hours selloff extended a volatile stretch for the stock, which had been one of the standout performers of early 2026 before Thursday’s report wiped out a portion of those gains.

Ballooning Debt and Heavy CapEx Plan Take Center Stage

CoreWeave posted fourth-quarter 2025 revenue of $1.57 billion, topping the $1.55 billion consensus estimate and representing 110% year-over-year growth. However, the company’s loss per share came in at $0.89, significantly worse than the $0.49–$0.72 range analysts had projected depending on the source, raising immediate concerns about the cost of the company’s rapid expansion. Adjusted EBITDA of $898 million also fell short of the $929 million StreetAccount consensus, adding another layer of disappointment to an otherwise strong top-line result.

Making matters worse for investors, CoreWeave’s first-quarter 2026 revenue guidance of $1.9 billion to $2 billion landed well below Wall Street’s $2.29 billion expectation. The company’s full-year 2026 outlook of $12 billion to $13 billion was roughly in line with analyst estimates of $12.09 billion, but the near-term shortfall was enough to spook markets. CEO Mike Intrator acknowledged on the analyst call that the company is intentionally prioritizing speed of build-out over short-term margins, stating that clients are pressing for faster access to infrastructure.

The company’s revenue backlog did offer a silver lining, swelling to $66.8 billion from $55.6 billion at the end of the third quarter, with the weighted average contract length extending to five years. CoreWeave also exceeded analyst projections on active power capacity, ending the year at 850 megawatts versus the expected 827 megawatts, and is targeting over 1.7 gigawatts of active power by year-end 2026.

Join our Telegram group and never miss a breaking digital asset story.

Investors Reassess Risk as AI Growth Meets Financial Reality

As of premarket trading on February 27, 2026 at 6:00 AM EST, CRWV was quoted at $86.52, down $11.11 or approximately 11.38% from its previous close of $97.63. The stock had closed Thursday’s regular session essentially flat, down just $0.38, but cratered in after-hours trading once the earnings report hit.

At its lowest point in extended trading, shares fell to $84.64, representing a decline of more than 13% from the close. The 52-week range for the stock sits between $33.51 and $187.00, illustrating how dramatic the stock’s journey has been since its IPO in March 2025.

Despite Thursday’s selloff, CRWV had still been up roughly 36% year-to-date heading into the print, dramatically outpacing the S&P 500’s near-flat performance over the same period. The analyst community remains broadly constructive on the stock, with an average price target of $126.93 and a range stretching from a low of $41 to a high of $251. The most recent rating action came from Macquarie on January 27, 2026, which maintained a Neutral rating with a price target of $115.

The core concern driving the premarket weakness is CoreWeave’s debt trajectory. The company reported $21.37 billion in total debt as of December 31, 2025, and is reportedly seeking an additional $8.5 billion loan from banks including Morgan Stanley and Mitsubishi UFJ to fund a cloud computing build-out for Meta.

With a total debt-to-equity ratio of 894% and levered free cash flow of negative $5.27 billion on a trailing basis, Moody’s has flagged that the company is expected to remain cash flow negative for at least the next 18 months, a reality that investors are increasingly pricing into the stock.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.