Investors shift focus from revenue growth to capital-intensive spending amid $2.1 billion quarterly sales and $100 billion backlog.
CoreWeave (NASDAQ: CRWV) stock has dropped 30% in one month, reversing a rapid ascent driven by AI-driven demand for its cloud infrastructure. The company reported first-quarter 2026 revenue of $2.1 billion, more than doubling year-over-year, while its backlog surged to nearly $100 billion.
Despite the growth, Wall Street is now scrutinizing CoreWeave’s ability to turn expansion into profits. The company’s aggressive infrastructure spending, running into tens of billions of dollars, has raised concerns about long-term profitability in a capital-intensive sector.
The shift in investor sentiment highlights broader market caution over high-growth tech firms with heavy capital expenditures, even as demand for AI-related services remains strong.