Coreweave Q3 Earnings Margin Concerns

2 months ago

Denita Sokova

"Yeah, ticker is CRWV. Uh initially very strong report that's we why we saw uh reaction there. But what investors seem to be worried about is narrow profit margins in the third quarter. We're talking about operating income margin of 4% and analysts were expecting 6.5%. This is a very interesting company that has been on a crazy rally since it IPOed. Um it actually since August since the last earnings report we get uh it's been in a sell-off mode. Uh so again this report uh which the revenue was very strong. It rose to 1.36 billion topping estimates. Um the reported loss was lower than what analysts were expecting. overall strong report but this wasn't enough to bring the sentiment after obviously last uh week AI the AI team suffered and cor was one of the big names that was hit there um so a lot of pressure there that said there are a lot of partnership with meta um it's it's obviously working with Nvidia Microsoft accounts for 71% of core waves revenue so a lot of optimism from analysts uh but pretty high valuation still um so the investors are punishing the margin"

Coreweave (CRWV) reported strong revenue of $1.36 billion but faced investor concern due to unexpectedly low operating margins of 4% compared to the anticipated 6.5%. Despite a rally since its IPO and notable partnerships with major technology companies, the margin compression has led to a sell-off mode. The commentary underscores that strong reported loss performance was insufficient to lift sentiment amid high valuation concerns.

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