CoreWeave Stock Plummets 50% Amid Meta Competition and High Costs

CoreWeave shares fell approximately 50% from their 52-week high of $153.20, bringing the company's market capitalization down by $49 billion to $39.5 billion as of July 16, 2026. The sell-off follows reports that Meta Platforms, which holds a $21 billion infrastructure agreement with the company through 2032, plans to build its own AI cloud business and sell excess capacity to external customers.

Beyond the threat from Meta, CoreWeave faces rising competition from Space Exploration Technologies Corp., which secured deals with Google and Anthropic, and Bitcoin mining firm TeraWulf, which recently signed a $19 billion deal with Anthropic. Investors are also concerned by the company's high capital requirements. CoreWeave projects capital expenditures between $30 billion and $35 billion this year against estimated revenues of $12.5 billion, raising fears of further debt or share dilution.

Despite these pressures, the company remains in a high-growth phase. First-quarter 2026 revenue rose 112% year-over-year to $2.1 billion, and analysts forecast total 2026 revenue to increase by 146% to over $12.67 billion. However, financial strain persists; net losses more than doubled in the first quarter to $740 million. The company is pursuing a target of 8 gigawatts of active power by 2030 to potentially reach a $1 trillion valuation, though it currently relies heavily on renting data center space rather than owning it.