CoreWeave stock faces a major test on Nov. 10 when the company reports its third-quarter earnings. Shares have declined amid concerns about artificial intelligence spending, rising borrowing costs, and competition in cloud computing.
The company reported $35.6 billion in total indebtedness as of June 30, 2026. Investors will assess whether revenue growth and its $104 billion backlog can offset mounting financing costs.
CoreWeave Stock Has Formed a Head & Shoulders Pattern
The daily chart shows that the CRWV stock has slumped this year, and this sell-off intensified on Thursday as US equities erased $2 trillion in value.
It recently dropped below the important support level of $63.67, its lowest level in December last year and June this year. This level was crucial because it coincided with the neckline of the head-and-shoulders pattern.
The stock has slumped below the 50-day Exponential Moving Average (EMA). It has also dropped below the Parabolic SAR indicator, a sign that bears have prevailed.
Therefore, the stock will likely continue falling in the coming days, with the next important level to watch being at $33.47, its all-time low. This level is about 28% below the current level.
CoreWeave to Publish Earnings as AI Jitters Remain
CRWV stock has been in a steep sell-off this year, making it one of the worst-performing companies in the Nasdaq 100 Index. Its sell-off intensified on Thursday after Democrats won the House of Representatives and the Senate.
The fear among investors is that Democrats will increase scrutiny of the AI industry and impose more stringent regulations.
At the same time, there are concerns about overcapacity in the compute industry. A good example of this is reporting by Bloomberg, which shows that Microsoft has started turning off rented capacity from Oracle as part of a larger reassessment of its multi-billion-dollar deals.
Such a move will impact CoreWeave, a company that counts Microsoft as one of its biggest clients. As such, there is a likelihood that Microsoft will not renew some of its contracts with CoreWeave.
Looking ahead, the company will publish its earnings on November 10. Yahoo Finance data shows that the consensus view is that its revenue rose by 160% in the third quarter to $3.54 billion. The forward guidance for the fourth quarter is that its revenue will be $4.6 billion, bringing the annual figure to $12.87 billion. These numbers will be strong considering that the annual revenue stood at $5.13 billion last year.
The results will also provide more details on its backlog. In its last result, the company said that its backlog stood at over $104 billion, making it the biggest neocloud in the industry.
The challenge, however, is that competition in the space has continued growing. For example, Nscale, a British company, has already inked deals worth over $100 billion. Other companies like Nebius, IREN, and Riot Platforms have also announced large deals this year.
Also, the company’s debt has continued growing because of the cost of its data center rollout. This growth has pushed its total debt to close to $30 billion, and this growth may continue.
Most notably, there are concerns about the rising depreciation and the fact that Gartner expects Neoclouds to announce large impairments in the future. A key issue is on the useful life of the GPUs in its data centers. While the company has an estimate of 6 years, Michael Burry warns that the introduction of new advanced GPUs will lead to a faster depreciation.
These fears explain why the company has a large short interest of 14%, a sign that investors expects that the shares will drop further.
This article is for informational purposes only and does not constitute investment advice. Stock investments carry financial risks, and price projections are uncertain.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
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