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

CoreWeave's share price fell by 9% to $96 after the company warned about data center delays impacting its fourth-quarter results. This decline marks a significant drop below $100, the first since September. Despite reporting strong third-quarter earnings with revenue of $1.36 billion and an EPS loss that beat expectations, CoreWeave reduced its full-year guidance due to supply chain challenges from a third-party data center developer. CEO Michael Intrator claimed demand for their platform remains robust, but industry-wide supply chain issues are affecting performance. The company's stock has lost approximately 20% since the collapse of the planned merger with Core Scientific, which Intrator noted was a strategic fit but flawed in valuation. Nevertheless, CoreWeave continues to expand its infrastructure capacity and has projects lined up across Europe.

Source 🔗