CoreWeave’s (CRWV) bearish trend has worsened after the company warned that data center delays would impact its fourth-quarter results.
The cloud computing provider specializing in artificial intelligence infrastructure saw its shares fall 9% in pre-market trading to $96, falling below $100 for the first time since September.
According to PakGazette, the company posted third-quarter revenue of $1.36 billion and an earnings per share loss of $0.22, exceeding both expectations. However, it lowered full-year guidance, citing delays from a third-party data center developer.
CEO Michael Intrator said: “We are experiencing relentless demand for our platform, but data center developers across the industry are experiencing unprecedented pressure on supply chains, impacting fourth quarter expectations.”
Downtrend worsens
The latest price drop extends a broader decline that has seen the stock lose about 20% since Core Scientific (CORZ) shareholders rejected a merger proposal last month.
Intrator addressed the failed acquisition during the company’s earnings call, saying, “While the deal made sense strategically for both companies, the valuation required by their shareholders simply was not an appropriate price for CoreWeave.”
“The outcome in no way negatively impacts our ability to achieve our growth ambitions,” Intrator said, adding that CoreWeave will continue to collaborate with Core Scientific on approximately 590 megawatts of leased capacity.
Despite near-term headwinds, CoreWeave continues to expand its infrastructure footprint, reaching 2.9 gigawatts of contracted power and launching new projects across Europe.
