CoreWeave shares jump 16% after revenue beats and outlook raised
CoreWeave stock rose 16% in pre-market trading after the cloud-computing provider posted third-quarter revenue of $3.66 billion, above the $3.56 billion consensus, and lifted its full-year guidance.
The company’s per-share loss of $1.27 was smaller than the $1.46 Wall Street had expected. CoreWeave now sees full-year revenue of $13 billion to $13.3 billion, up from a previous range of $12 billion to $13 billion.
Management pointed to $9 billion in customer prepayments and deposits expected over the next three months. CEO Michael Intrator told investors on the earnings call that demand for computing capacity continues to outstrip the industry’s ability to build it, which he said is widening margins on new contracts.
The results follow a rough stretch for the stock, which had fallen more than 40% over the past month amid growing concerns about AI financing and CoreWeave’s heavy debt load. Those concerns had also drawn comment from Nvidia CEO Jensen Huang, who said he remained optimistic about CoreWeave’s financing and argued its cost of capital was falling.
The beat and raised guidance helped steady sentiment around AI infrastructure spending more broadly, after weeks of debate over how companies in the sector are funding their expansion.
A stronger-than-expected CoreWeave outlook can support risk appetite toward AI-linked equities and US tech indices, while easing some pressure on credit markets that had been pricing in financing stress at highly leveraged cloud providers.
Sources: Yahoo Finance; Investing.com (economy); Investing.com (economy)