CoreWeave’s (CRWV) downtrend worsened after the company warned that data center delays would impact its fourth-quarter results.
The cloud computing provider specializing in AI infrastructure saw its shares fall 9% pre-market to $96, falling below $100 for the first time since September.
According to PK Press Club, the company reported third-quarter revenue of $1.36 billion and an EPS loss of $0.22, both above expectations. However, it lowered its full-year forecast, citing delays from a third-party data center developer.
CEO Michael Intrator said: “We are experiencing unrelenting demand for our platform, but data center developers across the industry are experiencing unprecedented pressure across supply chains, impacting fourth quarter expectations. »
Downtrend worsens
The latest price drop continues a broader decline that has seen the stock lose about 20% since Core Scientific (CORZ) shareholders rejected a proposed merger last month.
Intrator addressed the failed acquisition during the company’s earnings conference call, saying, “While the deal made strategic sense for both companies, the valuation demanded by their shareholders was simply not an appropriate price for CoreWeave.” »
“The outcome has no negative impact on our ability to achieve our growth ambitions,” Intrator noted, adding that CoreWeave will continue its collaboration with Core Scientific on approximately 590 megawatts of leased capacity.
Despite near-term headwinds, CoreWeave continues to expand its infrastructure footprint, reaching 2.9 gigawatts of subscribed energy and launching new projects across Europe.
