Coreweave’s ( CRWV ) downtrend worsened after the company warned that data center delays would affect fourth-quarter results.
The cloud computing provider that specializes in AI infrastructure saw its shares drop 9% in pre-market trading to $96, falling below $100 for the first time since September.
According to Investment.comThe 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 developer.
CEO Michael Intrator noted, “We are experiencing unabated demand for our platform, but data center developers across the industry are enduring unprecedented pressure across supply chains, impacting fourth quarter expectations.”
The downtrend worsened
The latest price drop extends a wider slide that has seen the stock lose nearly 20% as shareholders in Core Scientific (CORZ) rejected a proposed merger last month.
Intrator discusses the company’s failed acquisitions during the period revenue callsaying, “While the deal was strategic for both companies, the valuation their shareholders demanded was simply not a price that was right for Coreweave.”
“The outcome in no way affects our ability to achieve our growth ambitions,” said the insider, who added that Coreweave will continue to collaborate with the scientific base on nearly 590 megawatts of leased capacity.
Despite short-term headwinds, Coreweave continues to expand its infrastructure footprint, reaching 2.9 gigawatts of contracted power and launching new projects across Europe.
