CoreWeave Stock Slides After Guidance Cut — But Retail Traders Sniff ‘Generational’ Buying Opportunity

• CEO Michael Intrator said CoreWeave’s position as the essential cloud for AI has never been stronger.
• The company shrugged off a delay and clarified that the affected customer has agreed to adjust the delivery schedule to preserve the total value of the original agreement.
• CoreWeave stock has gained nearly 170% this year.

CoreWeave, Inc. (CRWV) shares fell over 6% in Monday’s extended session after the artificial intelligence (AI) infrastructure company reduced its guidance, citing a delay at one of its third-party data center providers. Despite the adverse investor reaction, retail traders’ sentiment toward CoreWeave stock improved appreciably following the quarterly print. 

CoreWeave Q3 Earnings Snapshot

CoreWeave CEO Michael Intrator touted record third-quarter fiscal year 2025 revenue and a revenue backlog that nearly doubled to $55.6 billion. The executive said, “Our performance reflects disciplined execution across every part of our business, from scaling infrastructure and expanding capacity to deepening customer relationships and advancing our software and services.”

“CoreWeave’s position as the essential cloud for AI has never been stronger as we drive growth through focus and innovation to power the next generation of AI.”

The key third-quarter metrics are as follows:

-Adjusted loss per share: $0.22 versus $0.36 consensus loss estimate (Fiscal.ai)

-Revenue: $1.37B vs. $1.28B consensus

The quarterly loss per share narrowed significantly from the year-ago loss of $1.82 per share. CFO Nitin Agrawal attributed the strong revenue to robust customer demand and strong execution, according to the transcript of Koyfin's earnings call. The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin contracted year over year (YoY) to 61% from 65%.

During the earnings call, CoreWeave’s Intrator stated that, as of the third quarter, no single data center provider accounted for more than approximately 20% of its contracted portfolio.

CoreWeave’s Outlook

Announcing the guidance on the call, Agrawal said the company plans to bring online some of its largest-scale deployments to date. This would have a near-term impact on adjusted operating margin, he said. The company expects 2025 capital expenditure (Capex) to be in the range of $12 billion to $14 billion, down from the previous outlook of $20 billion to $23 billion. The company attributed the reduction mainly to the delay of the third-party data center client. 

CoreWeave guided full-year revenue to a range of $5.05 billion to $5.15 billion, down from the previous guidance of $5.15 billion to $5.35 billion, and adjusted operating income to be between $690 million and $720 million, also down from the prior outlook of $800 million to $830 million. The company attributed the delays in the power shell delivery, associated with the third-party data center provider, to the anticipated shortfall. The delay will also impact fourth-quarter results.

“These delays are temporary, and……the affected customer has agreed to adjust the delivery schedule to preserve their capacity for the full duration and the total value of the original agreement,” Agrawal said. The company expects to end the year with over 850 megawatts of active power.

What Retail Feels About CoreWeave Stock 

On Stocktwits, retail sentiment toward CoreWeave stock shifted to ‘extremely bullish’ as of late Monday, from ‘bearish’ a day ago. The message volume also perked up to ‘extremely high’ levels, with the retail chatter jumping nearly 4,000% over the 24 hours leading up to late Monday.

A bullish watcher noted that the operating margin miss also weighed on the stock, as they reshared another user's comment lamenting the $3.2 billion in market cap erosion in the after-hours due to the guidance reduction.

Some also opined that the company should not have announced the delay, as it would still meet the guidance anyway, as it always does.

Another user saw the post-earnings dip as a “generational” buying opportunity.

CoreWeave stock, which has traded in a 52-week range of $33.5 to $187, ended Monday’s session up 1.54% at $105.61.

CoreWeave stock has gained nearly 170% this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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