Coreweave Slumps Amid Execution Delays

2 months ago

Valerie Titel

">> Yeah, another tech stock in the red. Cororeweave is down over 10% in pre-market trade. And I think this is telling us about potential bottlenecks in this race to build out these AI data centers. Corore is falling after earnings. Essentially uh what happened is that they had a delay within a third party on building out a data center and that delay means that they could not fulfill a customer contract and they had uh to essentially mark down their guidance when it comes to sales for the remaining quarters of the year. So perhaps investors are uh not taking kindly to the fact that Cororee is not able to meet customer expectations as quick as possible. Also, they had some tighter margins which were a weak spot in the otherwise pretty great report for the third quarter."

Coreweave's stock is suffering a significant pre-market decline of over 10% following execution issues, including delays in data center development and resulting guidance markdown, highlighting potential capacity and margin challenges.

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