CoreWeave Shares Tumble 14% as Meta’s Cloud Ambitions Rattle Investors

CoreWeave (NASDAQ: CRWV) shares plunged nearly 14% on Wednesday, closing at $85.69, after Bloomberg reported that Meta Platforms is building a new cloud infrastructure business to sell its excess AI computing capacity — a direct challenge to CoreWeave’s core “neocloud” business model.

Trading volume surged to roughly 60 million shares, triple the recent average, as investors digested news that Meta CEO Mark Zuckerberg’s previously floated idea of monetizing spare AI compute is now taking shape, spanning both an AWS Bedrock-style hosted-model offering and raw GPU capacity. The news sent Meta shares soaring more than 11%, while rival neocloud Nebius fell 12%-15% in sympathy.

Wall Street’s reaction was sharply divided. Bernstein struck the most bearish tone, calling the development “problematic” for CoreWeave and warning that hyperscaler competition was inevitable, adding to pressure already seen from Google-Blackstone’s Colossus project.

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The firm maintained an Underperform rating with a $67 price target, arguing CoreWeave’s business model faces long-term sustainability risk as tech giants increasingly compete head-on.

By contrast, Roth Capital called the selloff an overreaction to an “unconfirmed, capacity-gated plan” and said it would be a buyer of CoreWeave on the weakness.

Jefferies echoed that optimism, arguing Meta entering the cloud business follows Amazon’s AWS playbook of monetizing excess compute to fund further capex rather than cannibalize it — and that CoreWeave’s value as “one of the best at hosting AI compute” remains intact.

Craig-Hallum offered a more nuanced take, suggesting any Meta offering would likely resemble a large-scale cloud provider rather than compete directly with specialized AI-focused neoclouds.

The selloff compounds existing pressure on CoreWeave, which had already dropped after guiding 2026 capital expenditures to more than double 2025 levels.

With shares now trading near 8 times sales, the split analyst reaction underscores genuine uncertainty about whether Meta represents an existential threat or simply noise around an unconfirmed, still-developing plan.