CoreWeave Shares Drop 9% After Hours Despite Beating Revenue Estimates

CoreWeave shares plummeted nearly 9% in after-hours trading on Tuesday, despite the company posting quarterly revenue that significantly exceeded analyst expectations [1]. The artificial intelligence infrastructure provider reported $1.21 billion in revenue for the second quarter, far above the $1.08 billion that Wall Street had forecast [1]. This figure marked a more-than-triple increase from the $395.4 million recorded during the same period in the previous year [1]. However, the positive earnings report did little to curb the immediate sell-off in its stock.

Despite the impressive revenue growth, CoreWeave still reported a net loss of $290.5 million, an improvement from the $323 million loss in the prior year [1]. The company attributed the continued losses to ongoing capital expenditures and operational costs, with its operating margin dropping sharply to 2% from 20% a year earlier [1]. CFO Nitin Agrawal noted that growth is being constrained by current capacity limitations, as demand for CoreWeave’s AI computing resources—particularly its Nvidia GPU rentals—continues to outpace availability [1].

The company has taken steps to expand its offerings and strategic partnerships. CEO Mike Intrator highlighted increased collaboration with OpenAI, as well as the addition of Goldman Sachs and Morgan Stanley as new clients [1]. Both banks had previously served as underwriters for CoreWeave’s March IPO, which raised $1.5 billion by selling 37.5 million shares at $40 each [1]. CoreWeave also announced the $1.4 billion acquisition of Weights and Biases, a startup that provides monitoring tools for AI models in production [1].

Looking ahead, CoreWeave has raised its revenue forecast for the full year 2025 to between $5.15 billion and $5.35 billion, representing a 174% increase from the current year [1]. For the third quarter, the company expects revenue between $1.26 billion and $1.30 billion, slightly above the $1.25 billion analysts had anticipated [1]. This guidance comes as the company prepares to deliver a New Jersey data center project with up to 250 megawatts of capacity by 2026 [1].

The post-earnings decline reflects a broader trend in the market, where even companies posting strong revenue results have faced investor skepticism. Analysts suggest that investors are increasingly focused on margin health, debt sustainability, and long-term growth expectations [2]. CoreWeave’s after-hours drop underscores how key financial metrics—such as operating margins and debt levels—can influence market sentiment, even in the face of strong top-line performance [3].

As of Tuesday’s close, CoreWeave’s stock was valued at $148.75, giving the company a market valuation of over $72 billion before the after-hours drop [1]. The stock began trading on the Nasdaq at the end of the first quarter and has since seen significant volatility [1]. Investors are now watching whether the company can continue to deliver on its ambitious growth targets while improving profitability and managing its $11.1 billion in debt [1].

CoreWeave’s post-earnings decline serves as a reminder that strong revenue numbers alone are not always enough to satisfy the market [3]. In a climate of macroeconomic uncertainty and high investor expectations, clarity on future profitability and operational efficiency remains crucial [2]. The company’s ability to address current capacity constraints and deliver on its expansion plans will likely determine its path forward.

Source:

[1] CoinMarketCap - https://coinmarketcap.com/community/articles/689bcc68f5c8bb5c385fcc2a/

[2] Yahoo - https://uk.finance.yahoo.com/news/earnings-live-coreweave-circle-slide-as-investors-scrutinize-post-ipo-results-cava-stock-plunges-203511784.html

[3] Mitrade - https://www.mitrade.com/au/insights/news/live-news/article-8-1033983-20250813