CoreWeave Shares Drop 9% on Weak Outlook and Data Center Delays

CoreWeave's share price has dropped 9% to $96 following a warning about impacts from data center delays on its fourth-quarter results. This decline marks the first time shares have fallen below $100 since September. The company reported a Q3 revenue of $1.36 billion, surpassing expectations, despite facing challenges in supply-chain delays from a third-party data center developer. CEO Michael Intrator emphasized that, despite the ongoing demand for their services, supply chain pressures could adversely affect fourth-quarter results. The recent downturn follows a failed acquisition deal with Core Scientific (CORZ), which has raised concerns among investors regarding execution risks and AI infrastructure bottlenecks. Although CoreWeave has cut its full-year guidance, Intrator reassured that the company would continue progressing with growth plans and collaborations with Core Scientific for future projects.

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