CoreWeave stock drops as Meta enters AI processing market and debt worries rise

CoreWeave, an AI‑infrastructure provider that went public on March 28 2025 at $40 per share, saw its price surge to $183 in June before sliding back to roughly $82, a 13.2% decline in the latest trading week.

The pullback follows a broader rotation out of AI‑hardware equities and intensified after Meta Platforms announced plans to offer AI processing services to third‑party customers, creating direct competition for CoreWeave. Investors are also wary of the company’s heavy balance‑sheet, with total debt of about $50.8 billion and a debt‑to‑equity ratio exceeding 10‑to‑1.

Despite projected revenue growth to $5.1 billion in 2025 and a backlog expected to reach $99.4 billion by early 2026, CoreWeave forecasts rising net losses—$1.2 billion for 2025—and a steep increase in its debt load. Analysts debate whether the current price dip presents a buying opportunity given the firm’s growth potential versus its financial risks.