The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Sign in to access this content
Sign InCoreWeave 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.