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Stock Market Today, Feb. 27: CoreWeave Falls After Q4 Loss Widens and Revenue Guidance Misses Expectations

newsfeedback@fool.com (Howard Smith)
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⚡ Quantum Brief
AI cloud provider CoreWeave plunged 18.6% Friday after reporting widening Q4 losses and weaker-than-expected Q1 revenue guidance of $1.95 billion, sparking investor concerns over profitability. The company plans to more than double 2026 capex to $35 billion—including $6.5 billion in Q1—raising fears about margin pressure and leverage despite its AI infrastructure growth. Trading volume surged 109% above average to 57.7 million shares, reflecting heavy sell-offs as investors reassessed its aggressive spending amid a broader tech downturn. Peers Nvidia and Microsoft also declined (4.16% and 2.24%), with the Nasdaq dropping 0.92% as high-multiple AI stocks faced scrutiny over valuation and spending risks. CoreWeave’s 99% post-IPO growth contrasts with current struggles, as investors question whether its $51B market cap justifies massive capex before achieving profitability.
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By Howard Smith – Feb 27, 2026 at 5:14PM ESTExpandNASDAQ: CRWVCoreWeaveToday's Change(-18.60%) $-18.16Current Price$79.47Key Data PointsMarket Cap$51BDay's Range$75.66 - $84.3852wk Range$33.52 - $187.00Volume2.8MAvg Vol27MGross Margin49.23%CoreWeave (CRWV 18.60%), a cloud provider optimized for AI workloads, closed Friday at $79.56, down 18.51% after investors punished its Q4 results and heavy-spending outlook. The stock moved lower as widening losses, below-consensus Q1 revenue guidance, and plans to more than double 2026 capex raised margin and leverage concerns. Investors are also watching how effectively that aggressive buildout converts its large contracted backlog into profitable growth.Trading volume reached 57.7 million shares, coming in about 109% above its three-month average of 27.7 million shares. CoreWeave IPO'd in 2025 and has grown 99% since going public.How the markets moved todayThe S&P 500 (^GSPC 0.43%) slipped 0.43% to 6,879, while the Nasdaq Composite (^IXIC 0.92%) fell 0.92% to 22,668 as growth stocks broadly lost ground. Within cloud computing services, industry peers Nvidia (NVDA +0.00%) closed at $177.19 (-4.16%) and Microsoft (MSFT 2.17%) finished at $392.74 (-2.24%) as investors reassessed high-multiple AI infrastructure names.What this means for investorsCoreWeave reported a larger net loss even as revenue more than doubled in Q4. Investors particularly didn’t like the company’s first-quarter guidance for revenue of about $1.95 billion as well as soaring capital expenditure plans. On the conference call for investors, management predicted about $6.5 billion in Q1 capex, and as much as $35 billion for the fully year. That will make the road to profitability even tougher, and had some investors bailing out of CoreWeave stock today. Read NextFeb 27, 2026 •By Jeremy BowmanWhy CoreWeave Stock Was Tumbling TodayFeb 26, 2026 •By Scott LevineWhy CoreWeave Stock Is Plunging in After-Hours TradingFeb 26, 2026 •By Eric VolkmanThe Neocloud Revolution Is Here. This AI Stock Went From Zero to $5 Billion in Revenue in 3 Years.Feb 25, 2026 •By Harsh ChauhanThis AI Stock Has Soared 123% Since Its IPO.

Is It Still a Buy for 2026?Feb 24, 2026 •By Chris NeigerIs CoreWeave Stock a Buy Now?Feb 23, 2026 •By Justin PopeThis AI Stock Soared 92% Last Year.

Is It Still a Buy for 2026?About the AuthorHoward Smith is a contributing Motley Fool stock market analyst covering technology and industrial stocks. Prior to The Motley Fool, Howard spent nearly 30 years supervising quality and operations in the steel industry, mostly with leading steel company Nucor. He holds a bachelor’s degree in metallurgical engineering from Lafayette College and a master’s degree in environmental engineering from Johns Hopkins University.TMFBuilt2LastStocks MentionedCoreWeaveNASDAQ: CRWV$79.47(-18.60%)-$18.16NvidiaNASDAQ: NVDA$176.69(-4.43%)-$8.20MicrosoftNASDAQ: MSFT$393.00(-2.17%)-$8.72*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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