CoreWeave Stock Fell 11.4% on Friday. The Sell-Off Is About What It's Spending, Not What It's Selling.

CoreWeave fell 11.4% on Friday as investors focused on the company's balance sheet risk rather than its revenue momentum. The cloud infrastructure provider reported 112% year-over-year revenue growth and a $99.4 billion backlog, but those figures were overshadowed by its capital spending trajectory and debt load.

The company plans to deploy $31 billion to $35 billion in capital expenditures in 2026 alone—roughly five times its trailing twelve-month revenue of $6.2 billion. Total debt has climbed to $24.9 billion, with interest expenses projected to hit $650 million to $730 million in Q2 2026. The spending spree aims to scale GPU cloud capacity, but the financing burden is drawing scrutiny.

Competitive pressure is mounting. Meta, a major customer, is building its own cloud infrastructure, creating a potential threat to CoreWeave's demand pipeline. The twin concerns of rising leverage and customer overlap sent shares lower despite otherwise strong operating metrics.