CoreWeave Stock Plunges 20% Following Earnings and CEO Defense on CNBC
Key Facts
- •CoreWeave shares slumped around 12% before the bell on Friday.
- •The company plans to double its capital expenditure this year.
- •Increased spending fueled investor concerns about margin pressure and returns from its AI push.
CoreWeave's stock decline deepened to 20% following the release of its latest earnings report, which triggered significant concerns over the company's future profitability. The sell-off was primarily driven by disappointing revenue guidance and the firm's controversial plan to double its capital expenditure CapEx to bolster AI infrastructure. During an interview on CNBC's 'Squawk on the Street' on Friday, CEO Mike Intrator defended the aggressive spending strategy, maintaining it is essential to meet surging market demand. Intrator also addressed the company's rising debt levels, attempting to alleviate investor anxiety regarding financial leverage and liquidity. Despite these assurances, the market remains cautious about whether the massive infrastructure investment will translate into actual profit margins. The sharp drop reflects growing skepticism over the company's ability to deliver sustainable returns amid a volatile tech landscape.
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