12.08.2025 23:20
CoreWeave, a prominent artificial intelligence infrastructure provider, experienced a significant 9% drop in its stock price during after-hours trading on Tuesday. This downturn occurred despite the company exceeding analyst expectations in its latest quarterly earnings report, a fact highlighted by sources like CNBC. The unexpected market reaction underscores the complexities of investor sentiment and the challenges faced by rapidly expanding tech companies.
Revenue for the quarter reached a remarkable $1.21 billion, surpassing Wall Street's forecast of $1.08 billion and representing a more than threefold increase compared to the $395.4 million generated during the same period last year. This impressive revenue growth, however, was offset by a net loss of $290.5 million, although this was a slight improvement on the $323 million loss reported the previous year. The earnings per share loss of 21 cents, while improved, was deemed not directly comparable to analyst consensus estimates.
According to Chief Financial Officer Nitin Agrawal, during a subsequent earnings call, the company’s growth is currently constrained by limited capacity. High demand for CoreWeave's Nvidia GPU rental services significantly outstrips the company's current supply, a challenge compounded by competition with major cloud providers like Amazon Web Services for the same AI-focused clientele. This persistent imbalance between supply and demand, Agrawal stressed, remains a significant hurdle.
The company's operating margin experienced a dramatic decrease to 2%, a significant fall from the 20% recorded a year prior. This sharp decline is primarily attributed to a substantial $145 million in stock-based compensation, further impacting CoreWeave's financial picture. Adding to this, the company's debt has ballooned to a considerable $11.1 billion. Despite these financial complexities, CoreWeave, in its second full quarter as a publicly traded entity following its March IPO, continues to secure major clients and expand its operations.
CEO Mike Intrator announced expanded collaboration with OpenAI, a key client and investor, and welcomed Goldman Sachs and Morgan Stanley as new customers; both banks notably served as underwriters for CoreWeave's initial public offering. Furthermore, the company strategically acquired Weights and Biases, a startup specializing in AI model monitoring software, for a substantial $1.4 billion, signifying CoreWeave's commitment to expansion and technological advancement within the burgeoning AI market.
