CoreWeave, Inc. (CRWV) shares dropped significantly during Tuesday's after-hours trading following the company's disappointing earnings report and concerns about the approaching expiration of the IPO lockup period.
On [date], retail investors largely ignored the stock decline.CoreWeave’s stockgenerated an 'extremely bullish' (94/100) response from investors on the platform, marking a rise from the 'bullish' sentiment observed the previous day.
The number of messages on the Stream also surged to exceptionally high levels.
A company based in Livingston, New Jersey, recorded a loss of $0.27 per share during the second quarter of fiscal year 2025, which is smaller than the $1.62 loss from the same period last year. Nevertheless, this quarterly loss per share was greater than the consensus forecast of -$0.20 compiled by Fiscal.ai.
During the call, CFO Nitin Agrawal mentioned that the company's cost of revenue and technology and infrastructure expenses rose as it expanded its investments in data center and server infrastructure to handle increasing customer demand, as noted in a transcript from Koyfin.
Revenue increased by 207% compared to the previous year, reaching $1.21 billion, which surpassed the expected figure of $1.08 billion.
CEO Michael Intrator stated, "Our solid second-quarter results reflect ongoing growth throughout all areas of our business," noting that the company is expanding quickly to address "unprecedented" demand for artificial intelligence (AI).
CoreWeave reported that its revenue pipeline reached $30.1 billion by the conclusion of the June quarter.
Capital spending for the quarter reached $2.9 billion, marking a rise of more than $1 billion compared to the prior quarter. The company anticipates capital expenditures to range from $2.9 billion to $3.4 billion in the fourth quarter.
During the earnings conference, the company projected third-quarter revenue to fall between $1.26 billion and $1.30 billion, with adjusted operating income expected to be between $160 million and $190 million. On average, analysts anticipate the company will record revenue of $1.25 billion for the quarter.
CoreWeave has increased its full-year revenue forecast to between $5.15 billion and $5.35 billion, compared to an earlier range of $4.9 billion to $5.1 billion, due to ongoing high customer demand. This projection matches the $5.04 billion market expectation. The company kept its adjusted operating income guidance steady at $800 million to $830 million.
It also kept its full-year capital spending (Capex) forecast unchanged at $20 billion to $23 billion.
CNBC's "Mad Money" host and stock analyst, Jim Cramer, expressed admiration for the outcomes. "Coreweave is solid," he mentioned in a tweet. However, he warned about the upcoming lockup expiration. "Many individuals have made profits, and they are likely to cash out," he added.
A retail analyst monitoring the stock observed that the negative market response could be attributed to the company's significant debt. "However, I anticipate upgrades soon due to the substantial revenue growth expected," they stated.
During the call, Agrawal stated, "We anticipate our Q3 interest expense to fall between $350 million and $390 million, influenced by higher debt levels used to finance our demand-driven capital expenditure growth."
Another person suggested purchasing the dip.
CoreWeave's stock has increased by more than 270% since its late March initial public offering.
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