Shares of CoreWeave, Inc. (CRWV) tumbled 6.55% in after-hours trading on Tuesday following the release of the company's second-quarter earnings report. The AI cloud computing firm posted mixed results, beating revenue expectations but falling short on earnings per share.
CoreWeave reported revenue of $1.21 billion for Q2, surpassing analyst estimates of $1.08 billion. However, the company posted a loss of $0.60 per share, wider than the $0.52 loss analysts had projected. This marked a significant improvement from the $1.62 per share loss reported in the same quarter last year, but still disappointed investors expecting better profitability.
The after-hours decline comes despite CoreWeave's strong revenue growth, which was up over 300% year-over-year. The company also reported a substantial revenue backlog of $30.1 billion, indicating robust demand for its AI-focused cloud services. However, high operating expenses of $1.19 billion during the quarter likely contributed to the earnings miss and subsequent stock drop.
Adding to the selling pressure, CoreWeave faces an imminent lockup expiration that could allow insiders to sell up to 300 million shares starting as early as Friday. This potential increase in share supply appears to be weighing on investor sentiment in the near term, despite the company's rapid growth trajectory in the booming AI infrastructure market.
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