CoreWeave Inc (NASDAQ: CRWV) is slipping in premarket today after the artificial intelligence (AI) infrastructure firm confirmed its revenue more than doubled again in its fiscal third quarter.
The company based out of Livingston, NJ also posted a narrower-than-expected loss of 22 cents a share (adjusted) for its fiscal Q3 as well.
Beneath the strong headline numbers, however, lie structural concerns that make CoreWeave stock rather difficult to own heading into 2026 – especially since it’s up 150% already despite the post-earnings dip.
Debt load could end up hurting CoreWeave stock
In its third-quarter earnings release, CoreWeave said its net interest expense now sits at an alarming $311 million – nearly triple the number from a year ago.
That alone signals a massive debt burden – and yet it gets worse.
Nitin Agrawal, the company’s chief of finance, said capital expenditures next year will be “well in excess of double” $13 billion expected for 2025.
That’s a capital intensity few companies can sustain – much less one that’s still posting net losses. While CoreWeave touts its backlog as a strength, it’s highly exposed to fluctuations in AI demand.
Hyperscalers have Amazon, Microsoft, and Google have their own data centres, they control their own demand – leaning on CoreWeave mostly for spillover demand.
Therefore, if the incremental demand softens, the company’s backlog could lose relevance rather quickly – leaving CRWV stock investors exposed to a leveraged infrastructure bet with not much insulation.
CRWV shares valuation is stretched, and insiders know it
CoreWeave shares are currently trading at a price-to-sales (P/S) ratio nearly 15 – a lofty premium for a debt-heavy business that is yet to turn a profit.
What’s more telling is insider behavior: 68 sell transactions over the past six months and zero buys. That’s a glaring signal of internal skepticism.
Despite management’s bullish remarks like “we’re reconstituting how compute is being delivered to clients,” insiders are consistently cashing out.
The recent collapse of the Core Scientific acquisition further weakens the bull case. It could have added scale and diversified revenue – potentially justifying CRWV valuation.
Without it, the company’s share price just looks increasingly disconnected from its fundamentals. After all, if things are so great indeed, why is no one on the inside buying?
Reduced guidance seals the bear case for CoreWeave Inc
Finally, CoreWeave lowered its revenue full-year guidance today – a troubling sign for a company trying to justify aggressive spending and premium valuation.
Moreover, despite surging revenue, the company remains deeply unprofitable. In a market that is increasingly rewarding profitability and discipline, CRWV’s model feels out of step.
For investors, this may mean more dilution risk, more debt, and more uncertainty. Until the Nasdaq listed firm proves it can scale profitably, CoreWeave stock remains high-risk artificial intelligence bet with limited upside only.
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