Stock drops ahead of IPO lock-up expiration
CoreWeave’s stock fell 17% on Wednesday after the AI data center operator reported a larger loss than Wall Street anticipated. In its second quarterly report as a public company, the New Jersey-based firm posted an adjusted loss of 27 cents per share, compared to analysts’ expectations of a 21-cent loss, according to LSEG data.
The decline comes just before the expiration of its IPO lock-up period on Thursday evening, which could add further volatility. This restriction prevents insiders from selling shares for a set period after the company’s public debut. Analysts at Stifel noted that near-term gains may be limited due to potential dilution linked to the recent acquisition of Core Scientific, whose shares also dropped 7% on the day.
Revenue beats but capex delay raises concerns
For the current quarter, CoreWeave projects revenue between $1.26 billion and $1.30 billion, slightly above the $1.25 billion consensus. It also raised its 2025 revenue forecast to a range of $5.15 billion to $5.35 billion, up from May’s projection of $4.9 billion to $5.1 billion, surpassing Wall Street’s $5.05 billion estimate. Still, some analysts expected stronger guidance given the stock’s surge since its March IPO. Morgan Stanley flagged a delay in certain capital expenditures until the fourth quarter, cautioning that later deployments could limit in-period revenue recognition.
AI demand drives growth and expansion
Revenue for the quarter more than tripled year-over-year to $1.21 billion, beating the $1.08 billion forecast. CFO Nitin Agrawal told analysts that demand continues to outstrip supply. The company’s client roster includes OpenAI, Microsoft, and Nvidia, and it has recently signed expansion deals with hyperscale partners. CoreWeave also completed its $1.4 billion acquisition of AI model monitoring startup Weights and Biases, ending the quarter with a $30.1 billion revenue backlog.
