CoreWeave Stock Gains 6.3% Ahead of Q3 Results

CoreWeave closed Friday at $46.40, rising 6.28% one trading session after touching a 52-week low. The artificial intelligence infrastructure provider will report third-quarter earnings after the market closes on Tuesday, November 10, followed by a call at 5:00 p.m. Eastern Time.

The stock gained as much as 10% during regular trading hours, reaching $47.70, before paring gains. On Thursday, the shares fell 9.83% to $40.58. The stock remains down about 15% over the past week and roughly 49% over the past month.

Third-quarter revenue guidance and capital costs

CoreWeave projected third-quarter revenue between $3.45 billion and $3.60 billion in August, up from $2.575 billion in the second quarter. Analyst estimates average between $3.54 billion and $3.55 billion, with consensus projecting a net loss of $1.16 to $1.17 per share.

Management also provided targets for operating results and capital requirements:

• Adjusted operating income between $200 million and $260 million, compared with $128 million in the second quarter
• Interest expense between $860 million and $940 million
• Capital expenditure between $11.5 billion and $13.5 billion

In the second quarter, CoreWeave recorded $128 million of adjusted operating income alongside $640 million of net interest expense. Its unsecured bond yields traded toward 15% in October.

Sector decline and customer delivery schedules

The closing price sits about two-thirds below the company's 52-week peak of $138.25. The shares trade beneath the $54 target set by Rothschild & Co Redburn in September, as well as the $97.85 conversion price on the company's convertible notes. Competitors also declined, with Nebius dropping 15% to $120.37 and IREN falling during the same period.

Microsoft reported lower capital spending and cited third-party capacity delays in its infrastructure rollout. While Microsoft did not name CoreWeave or Nebius, CoreWeave lists Microsoft as a major customer in regulatory filings.

CoreWeave carried roughly $104 billion in revenue backlog at the end of the second quarter, excluding more than $25 billion in new customer commitments secured early in the third quarter. Management stated in September that short-term contracts signed during the third quarter averaged approximately $40 million in annualized revenue per megawatt.