CoreWeave shares drop even as revenue and guidance top estimates
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CoreWeave shares drop even as revenue and guidance top estimates

August 13, 2025
01:01 PM
3 min read
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CoreWeave expanded its business with OpenAI during the second quarter, and it's also working with banks Goldman Sachs and Morgan Stanley.

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August 13, 2025

01:01 PM

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In this articleCRWV your favorite stocksCREATE FREE ACCOUNTMike Intrator, co-founder and CEO of CoreWeave, speaks at the Nasdaq headquarters in New York on March 28, 2025.Michael M

Santiago | Getty Images News | Getty ImagesCoreWeave s slid 9% in ext trading on Tuesday even as the vider of artificial intelligence infrastructure issued results and guidance that beat expectations.Here's how the company did in comparison with LSEG consensus:Earnings per : Loss of 21 centsRevenue: $1.21 billion vs. $1.08 billion expectedRevenue more than tripled from $395.4 million a year earlier, CoreWeave said in a statement

The company registered a $290.5 million net loss, compared with a $323 million loss in second quarter of 2024

CoreWeave's earnings per figure wasn't immediately comparable with estimates from LSEG.Revenue growth continues to be capacity constrained, with demand outstripping supply, Nitin Agrawal, the company's finance chief, said on a conference call with analysts

The company competes with cloud viders such as Amazon to rent out Nvidia chips to companies.CoreWeave's operating margin shrank to 2% from 20% a year ago due primarily to $145 million in stock-based compensation costs

Debt now sits at $11.1 billion

This is CoreWeave's second quarter of full financial results as a public company ing its IPO in March.On a conference call with analysts, CoreWeave CEO Mike Intrator pointed to an expansion in with OpenAI, a major client and investor, and he said Goldman Sachs and Morgan Stanley are becoming customers

Both banks were underwriters in CoreWeave's March initial public offering.During the quarter, CoreWeave acquired Weights and Biases, a startup with software for monitoring AI models, for $1.4 billion.In May, management touted 420% revenue growth, alongside widening losses and nearly $9 billion in debt

The stock still doubled anyway over the course of the next month.For the third quarter, CoreWeave anticipates $1.26 billion to $1.30 billion in revenue

Analysts surveyed by LSEG were looking for $1.25 billion.CoreWeave now sees $5.15 billion to $5.35 billion in revenue for all of 2025, suggesting a 174% growth rate

The new range is up from the $4.9 billion to $5.1 billion forecast that management gave in May

Analysts polled by LSEG had expected $5.05 billion in 2025 revenue.The company's s debuted on Nasdaq at the end of the first quarter, after it sold 37.5 s at $40 each, yielding $1.5 billion in ceeds

As of Tuesday's close, the stock was trading at $148.75 for a market cap of over $72 billion.A CoreWeave data center ject in New Jersey with up to 250 megawatts of capacity is set to be dered in 2026, the company said in the statement.Intrator said later this year CoreWeave aims to start letting people rent out GPUs on a spot basis

That means CoreWeave can quickly take back GPUs from customers if the company decides they're needed elsewhere, but costs are lower than they would be when bought on demand.WATCH: Citi's Tyler Radke's bullish call on CoreWeave, upgraded to buywatch now2:0402:04Citi's Tyler Radke's bullish call on CoreWeave, upgraded to buyThe Exchange