Top Investor Flags Risks Behind CoreWeave's Growth

CoreWeave posted a strong Q1 2026 revenue surge (about $2.1 billion, up 32% sequential and 112% YoY) and a backlog near $99.4 billion, but an EPS miss (-$1.11 vs -$0.92 expected) pressured the stock, which fell ~11%. Top investor Geoffrey Seiler cautions that CoreWeave’s highly leveraged, cash-flow-light model makes it vulnerable to rising GPU costs and dependence on external financing, noting comparisons to cash-rich hyperscalers. The company raised its 2026 capex lower bound to $31 billion (high end $35B) and issued Q2 guidance of $2.45–$2.6 billion (below consensus), while Wall Street maintains a Moderate Buy view with a 12‑month target around $132.65 (about 16% upside).