CoreWeave Stock Is Tumbling Wednesday: What's Fueling The Sell-Off?

by Adam Eckert Benzinga Editor

CoreWeave Inc CRWV shares are moving lower Wednesday on the heels of the company’s second-quarter financial results. A wider-than-expected loss appears to be weighing on shares.

What To Know: CoreWeave reported mixed results for the second-quarter with revenue of $1.21 billion coming in ahead of estimates of $1.08 billion, and a quarterly loss of 27 cents per share versus estimates for a loss of 17 cents per share.

Total revenue was up more than 300% year-over-year. The company, which provides access to Nvidia GPUs to large technology and AI-focused companies, ended the quarter with a revenue backlog of $30.1 billion and $1.15 billion in cash and cash equivalents.

"Our strong second quarter performance demonstrates continued momentum across every dimension of our business,” said Michael Intrator, co-founder and CEO of CoreWeave.

CoreWeave made its public debut on the Nasdaq at $40 per share earlier this year. The stock has more than tripled from those levels, which likely elevated expectations coming into earnings.

On a conference call following the print, CoreWeave guided for third-quarter revenue of $1.26 billion to $1.3 billion and full-year revenue of $5.15 billion to $5.35 billion. Analysts were looking for third-quarter revenue of $1.25 billion and full-year revenue of $5.04 billion, according to estimates from Benzinga Pro.

Following the company’s quarterly results, Needham reiterated a Hold and HC Wainwright & Co. maintained a Neutral rating. Stifel also maintained CoreWeave with a Hold rating and raised its price target from $115 to $120, suggesting shares may be fully valued following a strong run in recent months.

CRWV Price Action: CoreWeave shares were down 9.91% at $134 at the time of publication Wednesday, according to Benzinga Pro.

Shares are trading within the 52-week range of $33.51 to $187.00. The stock is below its 50-day moving average of $140.78, indicating a bearish trend in the short term. Key support levels may be found near the 100-day and 200-day moving averages at $103.08, which could act as a safety net if selling pressure continues.

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