CoreWeave falls the most since August
TL;DR
CoreWeave stock dropped sharply in after-hours trading on February 26, 2026, its biggest decline since August 2025, due to widening losses, rising interest expenses, and a negative P/E ratio of -53.92. Despite strong revenue growth, high operating expenses and a negative profit margin raise concerns about profitability and sustainability, though institutional ownership remains high at 57.56%.
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CoreWeave falls the most since August
CoreWeave Stock Falls Sharply Amid Rising Losses and Valuation Concerns
CoreWeave Inc. (CRWV) experienced a significant decline in after-hours trading on February 26, 2026, marking its largest drop since August 2025. The stock’s movement follows growing concerns over widening losses and rising interest expenses, as highlighted by recent financial reports.
The company’s price-to-earnings (P/E) ratio remains negative, standing at -53.92 as of February 25, 2026, reflecting continued unprofitability. This represents an 86% increase compared to its 12-month average P/E ratio of -28.98, indicating deteriorating earnings performance. Despite robust revenue growth—up 133.7% year-over-year to $4.31 billion—operating expenses surged to $3.02 billion, outpacing profitability and contributing to a net loss.
CoreWeave’s financial challenges are compounded by a -19.15% profit margin and a -3.51% return on assets, underscoring struggles to convert revenue into profit or efficiently utilize assets. Additionally, the company’s forward P/E ratio remains undefined due to negative earnings, complicating traditional valuation analysis. Institutional ownership, however, remains strong at 57.56%, suggesting some confidence from major investors despite recent volatility.
The stock’s decline aligns with broader market skepticism about CoreWeave’s ability to manage costs and interest expenses amid aggressive expansion. While the company’s price-to-sales ratio of 11.32 implies investors are paying a premium for revenue growth, the lack of profitability raises questions about sustainability. Analysts note that a higher P/E ratio in absolute terms (e.g., -53.92 vs. -28.98) may signal either pessimism about future earnings or overvaluation relative to historical trends.
With CoreWeave’s shares down sharply in after-hours trading, investors are closely monitoring its ability to balance growth with profitability amid a challenging macroeconomic environment.
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