CoreWeaves’ ( CRWV ) downtrend has worsened after the company warned that data center delays would affect its fourth-quarter results.
The cloud computing provider, which specializes in AI infrastructure, saw its shares fall 9% in premarket trading to $96, falling below $100 for the first time since September.
According to Pakinomist, the company reported third-quarter revenue of $1.36 billion and an EPS loss of $0.22, both beating expectations. However, it lowered full-year guidance, citing delays from a third-party data center developer.
CEO Michael Intrator noted, “We are experiencing relentless demand for our platform, but data center developers across the industry are enduring unprecedented pressure across supply chains, impacting expectations for the fourth quarter.”
Downward trend worsens
The latest price drop extends a broader slide that has seen the stock lose about 20% since shareholders at Core Scientific (CORZ) rejected a proposed merger last month.
Intrator addressed the failed acquisition during the company’s earnings call, saying, “While the deal made strategic sense for both companies, the valuation their shareholders demanded was simply not a price that was appropriate for CoreWeave.”
“The outcome in no way affects our ability to achieve our growth ambitions,” Intrator noted, adding that CoreWeave will continue to partner with Core Scientific on approximately 590 megawatts of leased capacity.
Despite the short-term headwinds, CoreWeave continues to expand its infrastructure footprint, reaching 2.9 gigawatts of contracted power and launching new projects across Europe.
