CoreWeave Stock Dropped Significantly. Should You Consider Buying the Dip?

May 10, 2026

Shares of CoreWeave (NASDAQ:CRWV) experienced a decline of over 11% on Friday. This drop followed the release of the company’s first-quarter results. Interestingly, the stock had nearly doubled in value recently, ahead of the earnings announcement.

The significant decrease in stock price wasn’t due to disappointing headline figures. In fact, revenue has more than doubled, with committed revenue nearing $100 billion. New contracts with notable companies, including Anthropic and Meta, have been accumulating.

However, the market seemed to react more to the announcements made alongside the report. While the second-quarter outlook showed increasing capital expenditure plans, earnings were still on a downward trend. Despite the recent drop, the stock is still up nearly 60% for the year, raising the question of whether this shift might serve as an entry point for optimistic investors.

Reservations remain impressive

The results from the first quarter underscored what many bullish investors have been suggesting: the demand for dedicated AI infrastructure continues unabated. Revenue reportedly surged by 112% year-over-year to $2.08 billion, which is a slight increase from the 110% growth noted in Q4 2025. Additionally, revenue rose by 32% sequentially.

Yet, the standout figure was the volume of reservations. CoreWeave secured over $40 billion in new contracts within the quarter, driving its total contractual sales balance up to $99.4 billion from $66.8 billion at the end of 2025. Roughly 36% of this balance is anticipated to convert into income within two years, with 75% projected to do so within four years.

There are signs that customer concentration might be lessening, too.

According to CEO Michael Intrator, there are currently ten customers committed to spending at least $1 billion each. This includes a multi-year contract with Anthropic and a $21 billion expansion agreement with Meta. For context, it’s noteworthy that around 62% of CoreWeave’s revenue in 2024 is expected to come from Microsoft alone.

Why dip alone is not enough

Despite these figures, the disconnect between booking and revenue reports is widening. The company recorded a net loss of $740 million in the first quarter, compared to $452 million in the previous quarter, and $315 million a year earlier.

Some of this pressure is structural. CoreWeave is heavily investing in new infrastructure, and each deployment incurs a negative contribution margin until fully operational. Intrator addressed this issue during the earnings call, stating, “If you consider that we have 50 megawatts in operation and we add 300 megawatts in a quarter, the impact on our gross margin will be significant.”

Nonetheless, such expansions require considerable capital. CoreWeave hit $6.8 billion in sales for the quarter and adjusted its full-year forecast to a range of $31 billion to $35 billion, while maintaining revenue guidance at $12 billion to $13 billion. The cost of building maintenance continues to rise, with net interest expenses reaching $536 million during the period. Furthermore, the number of shares has nearly doubled year-over-year to about 527 million.

Lastly, the evaluation of growth stocks remains concerning.

With a market capitalization of about $62 billion, which is five times this year’s revenue estimates, the company lacks earnings guidance, has a heavily leveraged balance sheet, an increasing stock count, and a recent stock drop that might complicate risk-reward calculations. Despite its impressive booking story, CoreWeave might require a solid execution timeline with limited room for errors.

That said, there’s still potential for CoreWeave to become a valuable long-term investment. Its leveraged position could lead to extraordinary profit growth once it reaches profitability. Conversely, the same leverage can pose challenges if growth stalls.

So, is now the right time to buy CoreWeave stock? Personally, I would say no. It could appeal to bolder investors who think the AI boom is just beginning.

Should you buy CoreWeave stock now?

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While CoreWeave might not be the right choice now, investors should consider other opportunities for potential growth in the market.