CoreWeave Stock Drops as Meta Enters AI Cloud Market

CoreWeave, a neocloud provider of AI infrastructure services, saw its stock price decline to approximately $82 after a record high of $183.58 in June 2025. Shares fell 13.2% during the shortened trading week ending July 4, 2026, diverging from gains in the S&P 500 and Nasdaq Composite.

The decline follows the announcement that Meta Platforms intends to sell its excess cloud computing power to third-party customers. This move places Meta in direct competition with CoreWeave and suggests that Meta's internal need for expanding compute capacity may be decreasing. Analysts indicate this shift could lead to a contraction in pricing power for CoreWeave.

Financial instability further pressures the company. While revenue surged from $16 million in 2022 to $5.1 billion in 2025, CoreWeave reported a net loss of $1.2 billion in 2025 and carries $50.8 billion in total liabilities. Investors have expressed concern over these losses, the company's heavy debt load from infrastructure buildouts, and the potential for interest rate hikes in late 2026.