CoreWeave Stock Risks $64 Drop Despite $104B AI Backlog

CoreWeave stock retreated toward $91 after giving back much of its post-earnings rally. CRWV remained well below its previous highs despite another quarter of rapid revenue growth.

The pullback reflects a tension inside CoreWeave’s growth model. AI infrastructure demand continues rising, but the company requires heavy capital spending and carries high financing costs.

Technical pressure has also increased. The daily chart shows a possible head-and-shoulders formation, with $64 emerging as a downside level if current support fails.

CoreWeave Stock Has Plunged as Its Growth Accelerates

CRWV stock has been in a freefall even as its revenue and backlog soared to a record high. Its recent earnings report showed that its backlog jumped to over $104 billion, helped by large orders from companies like OpenAI, Nvidia, Anthropic, Microsoft, and Meta Platforms.

Among all neocloud companies, CoreWeave has the most diverse clients. In addition to large AI names, it counts Jane Street as an investor and customer. It also serves smaller AI labs like Corehere, Mistral AI, and Decart.

The results showed that its revenue jumped to $2.57 billion in the second quarter from $1.2 billion in the same period last year. This revenue is expected to keep growing, with management guiding to third-quarter revenue of $3.45 billion to $3.60 billion and adjusted operating income of $200 million to $260 million.

Analysts expect its revenue growth to continue in the foreseeable future. Yahoo Finance data shows that analysts expect its annual revenue will jump by 151% this year to $12.90 billion, followed by $26.3 billion next year.

Growth is Coming at a Cost

There are a few reasons why the CRWV stock is falling despite the ongoing revenue and backlog growth. First, the ongoing growth is coming at a big cost, with its annual capital expenditure expected to be between $35 billion and $39 billion.

The challenge, however, is that its debt continues growing. It ended the last quarter with over $27 billion in total debt. This growth, in turn, has led to a surge in its interest expense.

It expects to pay between $860 million and $940 million in interest in the third quarter, up by $640 million in Q2. These are huge numbers that will continue to grow in the foreseeable future.

At the same time, there are concerns about the AI bubble, which some analysts believe will ultimately burst over time. For example, Michael Burry, who accurately predicted the Global Financial Crisis (GFC), has shorted the company and other AI names. Other investors have shorted it, with its short interest jumping to over 14%.

Short sellers also point to its substantial cash burn. Its net loss in the last quarter rose to $626 million in the second quarter from $290 million in the same period. One of the key parts of the losses is its depreciation, which jumped to $1.3 billion in the last quarter.

CRWV Stock Price Has Formed a Head and Shoulders Pattern

CoreWeave Stock Forms Head-and-Shoulders Pattern

Technical analysis adds another source of pressure for CoreWeave stock. The TradingView daily chart shows CRWV retreating after retesting resistance around $117.30.

That zone aligned with the left-shoulder region of a possible head-and-shoulders formation. The stock subsequently returned toward the low-$90 region.

CRWV also moved toward its 61.8% Fibonacci retracement level. A sustained break below that area would strengthen the bearish technical structure.

The head-and-shoulders pattern remains incomplete until price confirms a neckline breakdown. That distinction matters because the pattern can fail if buyers regain control before confirmation.

The chart places the next larger support area around $64. A decline from $91 to $64 would represent roughly 30% downside.

However, $64 remains a conditional technical target rather than a confirmed forecast. CRWV would first have to break nearby support and complete the bearish reversal formation. The upside scenario starts with a recovery above the recent consolidation area.

A sustained move back above $117.30 would weaken the head-and-shoulders setup and shift attention toward previous highs. For now, fundamentals and technicals point in different directions.

CoreWeave’s $104 billion backlog supports continued revenue growth. However, $35 billion–$39 billion in planned capital spending and rising interest costs leave CoreWeave stock sensitive to financing conditions.

The next move will depend on whether improving operating leverage can offset the costs required to fund that growth.

This article is for informational purposes only and does not constitute financial advice. Equity markets can experience sharp price movements.