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CoreWeave Stock Slides Amid Valuation Concerns Despite Strong Earnings
CoreWeave Stock Slides Amid Valuation Concerns Despite Strong Earnings
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BTCCSquare news:
CoreWeave shares tumbled 11.4% on Thursday, extending losses after its Q2 earnings failed to alleviate overvaluation fears. The AI-focused cloud provider posted revenue of $1.21 billion, surpassing Wall Street's $1.08 billion estimate, while narrowing net losses and improving margins.
CEO Michael Intrator highlighted "unprecedented demand for AI" and rapid scaling, but investors focused on red flags. Capital expenditures fell short of expectations—a worrying sign for a growth-stage company where capex typically forecasts future revenue. Debt servicing costs skyrocketed to $267 million from $67 million year-over-year, drawing analyst scrutiny.
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