CoreWeave arrests stock slide after posting a strong earnings beat and raising its full-year guidance
Neocloud infrastructure darling CoreWeave Inc. delivered an impressive revenue beat and raised its full-year guidance today as it demonstrated that demand for artificial intelligence computing remains strong, pushing its stock higher in late trading. The report comes at a prickly moment for the AI industry as investors increasingly sour on heavily indebted cloud infrastructure startups, […] The…
CoreWeave, a neocloud infrastructure company, reported strong earnings and raised its full-year guidance, sparking a 5% rise in its stock price as demand for AI computing remained high. The company reported a third-quarter loss before certain costs of $1.27 per share, beating analysts' expectations of a $1.16 per share loss. Revenue for the quarter reached $3.66 billion, surpassing the projected $3.55 billion.
CoreWeave now anticipates adjusted operating income between $1.275 billion and $1.375 billion, and revenue between $13 billion and $13.3 billion for the full year, significantly higher than previous estimates. The strong performance comes as investors question the long-term viability of the AI infrastructure buildout due to rising interest rates and the recent Nvidia CEO scandal.
CoreWeave plans to rely on client pre-payments, hardware partners like Nvidia, and limited external funding for its 2027 capital requirements. The company is also expanding into Asia and launching new AI cloud services, with a total debt of $47 billion and a $132.5 billion revenue backlog.
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