CoreWeave Shares Plunge 30% Despite Securing OpenAI and Meta Contracts
CoreWeave's stock plummeted nearly 30% over five trading sessions after revising its 2025 revenue guidance downward from $5.25 billion to $5.1 billion. The adjustment, attributed to data center delays and compute supply constraints, overshadowed a robust 85% quarterly increase in its backlog, now standing at $55.6 billion.
Major contracts with AI leaders OpenAI and Meta failed to buoy investor sentiment. Despite the sell-off, shares retain a 108% year-to-date gain, reflecting persistent demand for AI infrastructure. Third-quarter revenue more than doubled to $1.36 billion, yet profitability concerns linger with razor-thin 4% operating margins.
Analysts remain divided on the stock's trajectory, with 13 Buy ratings counterbalanced by 12 Hold recommendations and one Sell. The company's negative $8 billion free cash FLOW over the past year underscores the capital intensity of its growth strategy.
