CoreWeave’s (CRWV) downtrend has worsened after the company warned that data centre delays would impact its fourth-quarter results.
The cloud computing provider specializing in AI infrastructure, saw its shares decline 9% in pre-market trading to $96, dropping below $100 for the first time since September.
According to Investing.com, the company reported third-quarter revenue of $1.36 billion and an EPS loss of $0.22, both beating expectations. However, it lowered full-year guidance, citing delays from a third-party data center developer.
CEO Michael Intrator noted, “We are experiencing relentless demand for our platform, but data center developers across the industry are enduring unprecedented pressure across supply chains, this impacts fourth-quarter expectations.”
Downtrend worsens
The latest price drop extends a broader slide that has seen the stock lose roughly 20% since shareholders at Core Scientific (CORZ) rejected a proposed merger 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 was simply not a price that was appropriate for CoreWeave.”
“The outcome in no way adversely impacts our ability to achieve our growth ambitions,” Intrator noted, adding that CoreWeave will continue collaborating with Core Scientific on about 590 megawatts of leased capacity.
Despite the short-term headwinds, CoreWeave continues to expand its infrastructure footprint, reaching 2.9 gigawatts of contracted power and launching new projects across Europe.