CoreWeave stock drops 14% on earnings miss despite $1.21B revenue beat

CoreWeave’s stock plummeted 14% after the AI data center provider reported a wider-than-expected quarterly loss of 27 cents per share, missing analyst expectations of 21 cents. The disappointing results come just ahead of the company’s post-IPO lockup expiration on Thursday evening, which could unleash additional selling pressure from insiders previously restricted from trading their shares.

What you should know: Despite missing profit expectations, CoreWeave delivered strong revenue growth that more than tripled year-over-year.

• The company reported $1.21 billion in second-quarter revenue, surpassing Wall Street’s $1.08 billion forecast.
• Revenue guidance was raised to between $5.15 billion and $5.35 billion for 2025, up from the previous $4.9 billion to $5.1 billion range.
• Current quarter revenue is projected at $1.26 billion to $1.30 billion, slightly above the $1.25 billion analyst consensus.

The big picture: CoreWeave continues benefiting from surging AI demand, with major tech giants as customers and a massive revenue backlog.

• The New Jersey-based company serves high-profile clients including OpenAI, Microsoft, and Nvidia.
• CoreWeave finished the quarter with a $30.1 billion revenue backlog and recently signed expansion deals with hyperscale customers.
• During the quarter, the company acquired AI model monitoring startup Weights and Biases for $1.4 billion.

Why the market reaction was negative: Analysts expressed concerns about near-term headwinds despite the company’s strong fundamentals.

• The lockup expiration could create additional volatility as insiders gain the ability to sell their shares.
• Some analysts had hoped for stronger guidance given the stock’s massive surge since its March IPO.
• Delays in capital expenditures until the fourth quarter raised questions about deployment timing and revenue recognition.

What they’re saying: Company and analyst commentary highlighted both optimism and caution about CoreWeave’s trajectory.

• “We remain constructive long term and are encouraged by today’s data points, but see near-term upside capped by the potential CORZ related dilution and uncertainty, and the pending lock-up expiration on Thursday,” wrote Stifel analysts.
• Finance chief Nitin Agrawal noted during the earnings call that “demand outweighs supply” in the AI infrastructure market.
• Morgan Stanley analysts warned that “this delay in capex highlights the uncertainty around deployment time; as go-live timing is pushed, in-period revenue recognition will be smaller.”

Market context: Core Scientific, which CoreWeave recently acquired, also declined 7% on Wednesday, adding to broader concerns about the AI infrastructure sector’s near-term prospects amid high valuations and execution challenges.