CoreWeave Stock Plunges Over 51% — Is the AI Cloud Star Losing Its Shine?

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After launching its initial public offering (IPO) at $40 per share, CRWV stock surged to a peak of $187, reflecting significant demand for its cloud infrastructure that supports artificial intelligence (AI) technology.But the euphoria has since cooled. CoreWeave shares have tumbled roughly 51% from their highs. This sharp pullback can be attributed to a combination of factors. The expiration of the company’s post-IPO lock-up period opened the door for insiders and early investors to sell shares, which pressured the stock. Moreover, CoreWeave tempered its near-term growth outlook during the Q3 conference call yesterday and signaled higher spending ahead. The guidance weighed on CRWV stock.Google Has a ‘Secret Weapon’ That Could Make GOOGL Stock One of the Best AI Buys for 202630,000 Reasons It May Be Time to Sell Amazon Stock NowSoundHound Stock Just Got a New Street-High Price Target. Should You Buy SOUN Here?Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now!The company now expects 2025 revenue to come in between $5.05 billion and $5.15 billion, slightly lower than its previous forecast of $5.15 billion to $5.35 billion. Management cited delays in powered shell deliveries from a data center provider, which are expected to affect fourth-quarter results and, in turn, 2025 revenue.Moreover, CoreWeave’s plans for massive capital expenditures didn’t sit well with the investors. The company expects to spend between $12 billion and $14 billion in 2025, and more than double that amount in 2026, as it continues to expand its AI cloud capacity.While the underlying demand for AI infrastructure remains robust, CoreWeave’s higher spending, combined with growing market unease about a potential AI bubble, has weighed heavily on investor sentiment.www.barchart.comDespite short-term challenges, CoreWeave’s growth prospects remain solid. The delay in powered shell deliveries from a data center provider will impact fourth-quarter revenue, but this setback is expected to be temporary. The company’s aggressive capital spending has raised some eyebrows. However, these investments are strategically aimed at strengthening its infrastructure and enhancing its competitive positioning, thereby supporting its rapid growth trajectory. 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