CoreWeave, Inc. (NASDAQ:CRWV) shares are trading lower Thursday on continued weakness after the company reported mixed second quarter financial results on Tuesday.
What To Know: CoreWeave reported an adjusted loss of 27 cents per share, missing the consensus estimate of a 17 cent-loss. In addition, the company reported sales of $1.21 billion, beating the consensus estimate of $1.08 billion.
Product revenue rose sharply in the quarter, supported by key customer wins across AI labs, hyperscalers and enterprises. Notable deals included a $4 billion expansion with OpenAI and new agreements with BT Group, Cohere, LG CNS, and Mistral. The company also brought its first NVIDIA GB200 NVL72 systems online for customers at scale and delivered the largest-ever MLPerf Training submission using Blackwell GB200 instances.
CoreWeave completed its acquisition of Weights & Biases during the quarter and launched new tools to extend its cloud platform capabilities. These included Mission Control Integration for real-time cluster health management, W&B Inference for exploring open-source AI models and W&B Weave Online Evaluations for monitoring AI agents in production.
Operating income totaled $19.2 million, representing a 2% margin. Net loss narrowed to $290.5 million, or $0.60 per share, from $323 million, or $1.62 per share, in the same period last year.
FY25 Outlook: The company sees sales from $5.15 billion to $5.35 billion, versus the consensus estimate of $5.03 billion.
Q3 Outlook: CoreWeave expects sales from $1.26 billion to $1.30 billion, versus the consensus estimate of $1.25 billion.
Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.
- Stifel analyst Ruben Roy maintained a Hold rating on CoreWeave and raised the price target from $115 to $120.
- Wells Fargo analyst Michael Turrin maintained an Equal-Weight rating on CoreWeave and raised the price target from $60 to $105.
- Macquarie analyst Paul Golding maintained a Neutral rating on CoreWeave and raised the price target from $65 to $115.
- B of A Securities analyst Brad Sills maintained a Neutral rating on CoreWeave and lowered the price target from $185 to $168.
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CRWV Price Action: At the time of publication, CoreWeave stock is trading 10.8% lower at $105.04, according to data from Benzinga Pro.
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