Coreweave (CRWV) just announced a $21 billion long-term agreement with Meta Platforms (META), offering its AI cloud capacity to the company through December 2032. The company had already had an existing agreement with Meta Platforms in place from last year, valued at $14.2 billion through 2031, while the new agreement is set to utilize Nvidia’s (NVDA) Vera Rubin platform.
This latest agreement with Meta once again proves how reliable CoreWeave’s AI cloud offerings continue to be. The firm already works with Microsoft (MSFT), which is its largest client. In September 2025, CoreWeave also signed a $6.5 billion agreement with OpenAI. Despite all of the success, though, CRWV stock is still down 40% from its June 2025 highs, warranting further investigation into why shares have struggled to regain prior footing.
About CoreWeave Stock
Founded in 2017, CoreWeave is a cloud infrastructure technology company operating in the United States. The firm focuses on offering computing power for AI workloads and provides the CoreWeave Cloud platform, as well as data and storage solutions. CoreWeave also offers GPU and CPU computing, networking, and managed cloud services.
Even with occasional dips, CRWV stock has delivered a return of more than 54% so far this year. The Global X Cloud Computing ETF (CLOU) is down 19% during the same period.
The fact that CRWV stock has outperformed CLOU says a lot about recent positive sentiment. However, sentiment is also what drove the stock to its June 2025 highs and, despite making better deals, shares haven’t recovered. The company’s gross margins of 71.7% are right up there with the best companies but its operating income is negative, mainly due to high research and development expenses.
CoreWeave also has massive total debt of $29.82 billion compared to just $3.16 billion in cash. As a result, its interest cost is 23.5% of revenue, making the income statement look even worse. CRWV stock has a long way to go and buying shares based on a new partnership when the company is relying on debt for its growth may not be the best strategy at this time.
CoreWave's 2026 Outlook Looks Strong
CoreWeave posted its fourth-quarter fiscal 2025 results on Feb. 26. The company generated $1.6 billion in revenue during Q4 while full-year revenue reached around $5.1 billion. Adjusted operating income came in at $88 million for the quarter, and operating expenses totaled $1.66 billion, including $157 million in stock-based compensation. The company reported a net loss of $452 million for the quarter.
For 2026, CoreWeave projects revenue between $12 billion and $13 billion and adjusted operating income in the range of $900 million to $1.1 billion. Profitability is projected to improve throughout the year. For Q1 2026, margins are anticipated to remain in the low single digits, with improvements expected in the second and third quarters. By the fourth quarter, margins are likely to return to low double-digit levels, as new capacity becomes fully operational. By the end of 2026, management forecasts annualized revenue of $17 billion to $19 billion — and more than $30 billion by the end of 2027.
What Do Analysts Say About CoreWeave Stock?
Cantor Fitzgerald recently initiated coverage of CRWV stock with an “Overweight” rating and a price target of $149. The firm sees long-term potential in AI infrastructure, as AI adoption is expected to expand across nearly every industry and economy. Analysts also project a lasting supply-demand gap over the next five years or more, which should support strong pricing power in the sector.
CRWV stock is currently covered by 32 Wall Street analysts, earning a consensus “Moderate Buy” rating. The mean price target of $117.43 reflects 7% potential upside from current levels.
On the date of publication, Jabran Kundi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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