CoreWeave opens down 17%, marking the largest drop since August due to investor concerns over its spending.

CoreWeave opens down 17%, marking the largest drop since August due to investor concerns over its spending.

CoreWeave Stock Plummets 17%, Marking Largest Drop Since August Amid Spending Concerns
CoreWeave Inc. (NASDAQ: CWAVE) opened down 17% on February 27, 2026, its steepest decline since August 2025, as investors reacted to widening losses and aggressive capital spending. The selloff followed the company's disclosure of a fourth-quarter loss of $0.89 per share, exceeding the $0.72 per share loss anticipated by analysts. Despite revenue rising to $1.57 billion—slightly above estimates of $1.55 billion— the results failed to alleviate concerns about the firm's financial trajectory.

The stock's decline accelerated after CoreWeave announced plans to double its capital expenditures in 2026, sparking worries about margin compression and the efficiency of its infrastructure investments. The increased spending, aimed at expanding data-center capacity, has raised questions about the company's ability to balance growth with profitability. Analysts noted that rising interest expenses further pressure profitability, compounding losses reported in recent quarters.

Investors appear unsettled by the company's prioritization of scale over near-term profitability. "The market is signaling caution," said one analyst, highlighting that the 13% intraday drop in after-hours trading reflected growing skepticism about CoreWeave's capital allocation strategy. The stock's premarket slump of approximately 12% on Friday also underscored lingering doubts about returns on expanded infrastructure spending.

CoreWeave's shares, which closed at $18.45 on February 26, now trade at a valuation reflecting heightened risk premiums as investors weigh the sustainability of its growth strategy. While the company has not commented on the stock's volatility, the selloff underscores broader market scrutiny of high-spending tech firms in a tightening financial environment.

CoreWeave's interest expenses and loss expansion reported by MarketWatch.
Fourth-quarter financials and revenue figures from Bloomberg data.
Capital expenditure plans and margin concerns cited by Marketscreener.

This article is for informational purposes only and does not constitute financial advice.