NEW YORK, July 2, 2026, 05:01 (EDT)
- CoreWeave, Inc. NASDAQ:CRWV last traded at $85.69, down 13.9%. The drop erased around $7.3 billion in market cap.
- Meta Platforms, Inc. NASDAQ:META gained 8.8% on word the company is setting up a cloud business to offer AI compute capacity.
- CoreWeave’s Meta-related contracts come to around $35 billion, or almost 78% of the company’s current market value.
- Nasdaq will be open as usual on Thursday but is closed Friday, July 3 for Independence Day.
CoreWeave, Inc. NASDAQ:CRWV shed nearly as much in market cap in a single day as a third of its newest Meta Platforms, Inc. NASDAQ:META deal. Traders are shifting focus from just the company’s backlog to who will end up owning the future supply of AI compute.
The stock traded at $85.69, off 13.9% from the previous close. Meta gained 8.8% to $612.91. Shares of Nebius Group N.V. NASDAQ:NBIS, which also has Meta exposure, dropped 17.0%. The Invesco QQQ Trust Series 1 NASDAQ:QQQ shed 1.5%. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) was mostly flat.
| Security | Latest price | Move | Read-through |
|---|---|---|---|
| CoreWeave NASDAQ:CRWV | $85.69 | -13.9% | Traders chopped value on customer risk |
| Nebius Group NASDAQ:NBIS | $229.18 | -17.0% | Cloud sentiment dragged this name too |
| Meta Platforms NASDAQ:META | $612.91 | +8.8% | Investors bid up for compute resale upside |
| Invesco QQQ NASDAQ:QQQ | $725.17 | -1.5% | AI stocks off and QQQ caught it |
| SPDR S&P 500 ETF Trust (NYSEARCA:SPY) | $745.76 | -0.1% | Index barely moved against the drop |
A Bloomberg story picked up by Reuters said Meta is building a cloud unit to sell extra AI computing power. Meta would not comment, Reuters said, and Reuters couldn’t confirm the report on its own. D.A. Davidson’s Gil Luria told Reuters the move could hit neoclouds harder than the big established cloud firms. “Meta may not need them anymore,” he said. Reuters
This is what investors are watching. CoreWeave said in April that Meta has agreed to buy around $21 billion in AI cloud capacity through the end of 2032, with part of that tied to NVIDIA Corp.’s NASDAQ:NVDA Vera Rubin platform. At the time, CoreWeave CEO Michael Intrator said, “leading companies are choosing CoreWeave’s AI cloud” for heavy workloads. CoreWeave
MarketWatch said Meta has $35.2 billion in infrastructure deals with CoreWeave. With CoreWeave trading near a $45.16 billion market cap, that one customer is about 78% of equity value. That number is the reason for the selloff: Meta’s big commitment that once made the backlog look secure now flags a risk that a major customer could shift to competing in the same space.
| CoreWeave metric | Amount | Market read |
|---|---|---|
| Current market value | $45.16 billion | What’s left after shares sold off |
| One-session value loss | About $7.3 billion | Roughly 35% of the new $21 billion Meta contract |
| Meta contracts cited by MarketWatch | $35.2 billion | Equals about 78% of today’s market cap |
| Q1 revenue backlog | $99.4 billion | Just over double the current market value |
| Q1 interest expense | $536 million | About a quarter of the quarter’s revenue |
| Q1 net loss | $740 million | 36% of Q1 revenue |
CoreWeave’s Q1 numbers suggest competition isn’t the only challenge. Revenue jumped to $2.08 billion from a year ago, more than doubling, but CoreWeave ended up with a $740 million net loss and $536 million in net interest expense. Revenue backlog was $99.4 billion. The company counts backlog as performance obligations and other amounts from committed customer deals, assuming delivery and service go as planned.
Bernstein’s Madison Rezaei is bearish. The analyst said if Meta builds an external cloud business to take on Amazon.com, Inc. NASDAQ:AMZN, Microsoft Corp. NASDAQ:MSFT Azure and Alphabet Inc. NASDAQ:GOOGL Google Cloud, it would be “problematic for CoreWeave.” Bernstein kept an Underperform rating and held the $67 target. TipRanks
Evercore ISI stuck to its Outperform rating and $150 target. The firm said Meta makes up about $35 billion of CoreWeave’s $100 billion Q1 backlog, and described the contracts as committed, long-term, take-or-pay, and not cancellable.
The split is key since CoreWeave trades as a leveraged bet on AI demand. In May, the company said it lined up an $8.5 billion delayed-draw term loan and closed a $2 billion Class A stock deal with NVIDIA. It also reported buying $7.70 billion of property and equipment last quarter.
Stocks in the U.S. fell on Wednesday. The Nasdaq Composite slipped 0.66%, S&P 500 lost 0.22%. Meta shares helped trim bigger drops for the indexes. Traders are waiting for the U.S. monthly jobs report out Thursday. The Nasdaq will be shut Friday, July 3, for Independence Day.
