CoreWeave shares have faced a severe sell-off, accumulating losses of 26% over the last five trading days. This downturn has wiped approximately $13 billion off the company's market capitalization, which now stands at $37 billion. The sharp decline comes despite a massive $66 billion backlog and projected EBITDA margins of nearly 70%. Investors appear increasingly spooked by the company's ballooning debt, used to fund a $25 billion capital expenditure plan for AI infrastructure. While CoreWeave targets a $30 billion revenue run-rate by 2027, the immediate focus has shifted to its high leverage. This rapid valuation correction highlights growing market sensitivity toward the financing costs of the AI boom.
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