CoreWeave Stock Drops 14% After Q2 Loss Surpasses Expectations, Despite Tripled Revenue and Strong Demand

In a significant development, shares of AI infrastructure provider CoreWeave experienced a 14% decline following the release of its second quarter financial results as a public company. The company reported an adjusted loss of 27 cents per share, which surpassed analysts’ expectations of a 21-cent loss per share.

The dip in shares comes as the lock-up period following the initial public offering is nearing expiration on Thursday evening, potentially introducing volatility to the market. This period restricts insiders from selling their shares post-debut.

Analysts at Stifel expressed cautious optimism, stating that while they remain positive for the long term, near-term upside could be capped due to potential dilution from a recent acquisition of Core Scientific and uncertainties associated with the lock-up expiration. Shares of Core Scientific fell 7% on Wednesday in response.

For the current quarter, CoreWeave anticipates revenue between $1.26 billion and $1.30 billion, surpassing analysts’ forecasts of $1.25 billion. The company also raised its 2025 revenue guidance to between $5.15 billion and $5.35 billion, up from a previous range of $4.9 billion to $5.1 billion provided in May, and above the $5.05 billion estimate.

While some analysts hoped for stronger guidance given the stock’s impressive post-IPO surge in March, others highlighted light capital expenditures guidance and a delay in some spending until the fourth quarter as a potential point of weakness. Morgan Stanley analysts noted, “This delay in capex highlights the uncertainty around deployment time; as go-live timing is pushed, in-period revenue recognition will be smaller.”

CoreWeave reported that its revenue more than tripled year-over-year to $1.21 billion, driven by surging demand for AI infrastructure. This figure also surpassed Wall Street’s forecast of $1.08 billion. Nitin Agrawal, the company’s finance chief, confirmed during a call with analysts that demand outweighs supply.

CoreWeave, based in New Jersey, has recently signed expansion deals with hyperscale customers and announced the acquisition of AI model monitoring startup Weights and Biases for $1.4 billion during the period. The company finished the quarter with a $30.1 billion revenue backlog.