CoreWeave Is Down 13% in a Week. Here's the Price at Which I'd Buy

Key Points:

• CoreWeave's stock has dropped 54% over the past year, hitting a 52-week low of $53.50 on October 22, with a 13% decline in the past week alone, amid concerns about its financial health despite strong growth.
• Originally an Ethereum miner, CoreWeave pivoted to AI model training using Nvidia GPUs and now operates 51 data centers with over 250,000 GPUs, serving major clients like Meta, Microsoft, OpenAI, and Anthropic; Nvidia holds a 9% stake in the company.
• The company experienced explosive revenue growth of 168% to $5.1 billion in 2025 and adjusted EBITDA growth of 154% to $3.1 billion, but reported a net loss of $1.2 billion due to high interest, depreciation, and stock-based compensation costs.
• CoreWeave’s share count has increased by 28% since its IPO as it issued more shares and convertible debt to manage liquidity, resulting in $72 billion in liabilities and a debt-to-equity ratio of 14.3, raising concerns about its balance sheet amid rising interest rates.
• Despite a booming business with a 246% increase in contracted revenue backlog and projected 2027 revenue of $26.5 billion, CoreWeave faces capacity constraints and significant net losses, though its current valuation at four times next year's sales may limit downside risk.