CoreWeave shares drop even as revenue tops estimates

CoreWeave's shares experienced a decline of approximately 6% during after-hours trading on Tuesday, even as the company reported impressive revenue figures for the second quarter, exceeding market expectations. The AI infrastructure provider revealed that its revenue surged over threefold, reaching $395.4 million compared to the same period last year. However, the company also faced a significant net loss of $290.5 million, although this was an improvement from a $323 million loss in the second quarter of 2024. While the earnings per share were not directly comparable to analyst estimates, CoreWeave's operating margin fell sharply to 2% from 20% a year earlier, mainly due to $145 million in stock-based compensation expenses. This marks CoreWeave's second quarter of financial reporting since going public in March. The company highlighted a growing partnership with OpenAI, a key client and investor, as a driving force behind its expansion. Additionally, CoreWeave made headlines by acquiring Weights and Biases, a startup specializing in AI model monitoring software, for $1.4 billion. In May, CoreWeave management celebrated a staggering 420% revenue growth, even as losses widened and the company reported nearly $9 billion in debt. Despite these challenges, CoreWeave's stock price had doubled over the following month. The company went public on Nasdaq after selling 37.5 million shares at $40 each, generating $1.5 billion. As of the close on Tuesday, shares were valued at $148.75, giving CoreWeave a market capitalization exceeding $72 billion. Looking ahead, a major data center project with a capacity of up to 250 megawatts is scheduled for completion in 2026, according to the company's statement. Executives are set to discuss the quarterly results and provide future guidance on a conference call at 5 p.m. ET. Stay tuned for further updates.