Investor expectations for CoreWeave are high. Can the company continue justifying its stock price?
Michael Turrin, Wells Fargo managing director and software analyst, joins CNBC's 'Money Mover' to discuss why he's raised his target on CoreWeave, his reaction to recent earnings, and much more.
Key Points in This Article: CoreWeave's (CRWV) Q2 revenue of $1.21 billion surpassed estimates, driven by AI demand.
CoreWeave (CRWV) shares dropped more than 10% Wednesday, a day after the Nvidia-backed provider of artificial intelligence (AI) computing reported a much larger-than-expected loss as costs skyrocketed.
CoreWeave topped revenue estimates but posted a wider-than-expected second-quarter loss. The results come ahead of the company's post-IPO lock-up period, which is set to expire Thursday evening and could add volatility to shares.
Close U.S. stock futures are gaining after the Nasdaq and S&P 500 closed at fresh record highs yesterday following a tame inflation report; CoreWeave (CRWV) shares are down sharply in premarket trading after the Nvidia-backed firm reported a wider-than-expected loss; CAVA Group (CAVA) shares are plummeting after the fast-casual chain's same-restaurant sales came in far lower than expected and it cut its outlook; the International Energy Agency raises its global oil supply projections; and Perplexity reportedly offers to buy Google's Chrome in an unsolicited $34.5 billion bid. Here's what investors need to know today. 1. US Stock Futures Point Higher Following Fresh Records for Nasdaq, S&P 500 U.S. stock futures are rising after the Nasdaq and S&P 500 closed at record highs yesterday as investors reacted to the latest inflation reading. Nasdaq and S&P 500 futures are 0.2% higher, while Dow Jones Industrial Average futures are up by 0.3% after the blue-chip index neared its first record high since December. Bitcoin (BTCUSD) is higher, trading at more than $120,000. The yield on the 10-year Treasury note is pointing lower, while oil futures are declining by 0.7%. Gold futures are slightly higher. 2. CoreWeave Stock Sinks as Nvidia-Backed Firm Reports Wider-Than-Expected Loss CoreWeave (CRWV) shares are lower by 9% in premarket trading after the AI cloud provider reported a wider-than-expected loss. The Nvidia-backed firm reported a net loss of 60 cents per share, while analysts polled by Visible Alpha expected a narrower loss of 45 cents per share. The firm reported revenue of $1.21 billion, above expectations. Last month, CoreWeave reached an agreement to acquire longtime data center partner Core Scientific (CORZ) in an all-stock deal worth roughly $9 billion. Shares of CoreWeave have more than tripled since the firm's March initial public offering. 3. CAVA Group Stock Dives on Disappointing Same-Restaurant Sales Growth, Outlook Cut CAVA Group (CAVA) shares are plummeting nearly 25% in premarket trading after the fast-casual restaurant chain posted disappointing same-restaurant sales growth and cut its full-year outlook. CAVA's same-restaurant sales growth of 2.1% was far below the Visible Alpha consensus of 6.25%, and it cut its full-year outlook for the metric to between 4% and 6% from the prior range of 6% to 8%. CAVA's second-quarter revenue of $278.2 million also came up short of estimates. Shares entered Wednesday down 25% this year. 4. IEA Raises Global Oil Supply Projections The International Energy Agency once again has lifted its forecasts for global oil supply this year and next. The IEA on Wednesday said it now sees global oil supply growth of 2.5 million barrels per day (B/D) this year, up by 370,000 b/d from last month's forecast, and 1.9 million b/d in 2026, up by 620,000 b/d. Meanwhile, "the latest data show lacklustre demand across the major economies and, with consumer confidence still depressed, a sharp rebound appears remote," the IEA wrote. 5. Perplexity Offers to Buy Google's Chrome for $34.5B, Report Says AI startup Perplexity is offering to buy Google's Chrome in an unsolicited $34.5 billion bid, according to a report in The Wall Street Journal. The bid would be larger than Perplexity's estimated value of $18 billion, the report said. The reported offer comes as Google faces uncertainty from an antitrust ruling that could be announced as soon as this week, with a federal judge set to decide what steps Google must take after the company was found to have maintained an illegal monopoly in search. Forcing a sale of Chrome could be part of the decision, something the Department of Justice pushed for last year. Shares of Google parent Alphabet (GOOGL) are edging higher in premarket trading. Do you have a news tip for Investopedia reporters? Please email us at [email protected]
CoreWeave (NASDAQ:CRWV) shares tumbled in early trading as the AI cloud-computing startup posted a wider-than-expected loss for the second quarter. It reported a net loss of $290.5 million, above Street estimates of a loss of $190 million.
CoreWeave's NASDAQ: CRWV Q2 results left something to be desired with the adjusted net loss widening, but it is not a reason to sell. The losses are tied to the company's ramping business, scaling to meet the wicked demand for cloud-native AI compute capacity, and it is money well spent.
CoreWeave is relying on more debt and a deal for Core Scientific to expand its data center portfolio.
CoreWeave shares sank 10% in premarket trading on Wednesday after the Nvidia-backed company posted a bigger-than-expected loss, raising doubts about its ability to keep costs under check amid robust AI demand.
CoreWeave reported better-than-expected revenue with help from OpenAI, which invested in the artificial intelligence infrastructure provider. CoreWeave acquired model monitoring startup Weights and Biases in the quarter.
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