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

CoreWeave's shares experienced a 9% drop, falling below $100 for the first time since September, following warnings regarding fourth-quarter results impacted by delays from a third-party data center developer. Although the company reported third-quarter revenue of $1.36 billion and an EPS loss of $0.22, both exceeding expectations, it revised its full-year guidance downward due to supply chain issues affecting operations. CEO Michael Intrator stated that while the demand for CoreWeave's services remains high, the ongoing delays are expected to weigh on performance. The decline in share value further reflects a broader negative trend, particularly after a failed merger with Core Scientific, which has raised concerns among investors about execution risks and infrastructure bottlenecks in the AI sector. Despite these challenges, the company is pushing forward with plans to expand its infrastructure and has contracted 2.9 gigawatts of power, highlighting its commitment to growth amid the turmoil.

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