CoreWeave reports good results in Q3, but faces tough road ahead
The battered AI computing provider surprised Wall Street by posting better-than-expected earnings and raising its annual forecast, but shares are still down nearly 40% this year. One solid quarter does not make a rebound. CoreWeave, the battered AI computing provider, surprised Wall Street yesterday by posting better-than-expected earnings and raising its annual forecast. But shares are still down nearly 40% so far this year, and the company is still not throwing enough cash off its business to cover its roughly $41 billion of net debt. “Narratives shifted, sentiment swung, and people scrutinized the build-out of AI,” CoreWeave CEO Michael Intrator said in a blog post that pledged to “calibrate investment” to demand, regulatory winds, and, probably most importantly, the availability of money. Intrator said the company would no longer be turning to unsecured borrowing to fund its business.
The battered AI computing provider surprised Wall Street by posting better-than-expected earnings and raising its annual forecast, but shares are still down nearly 40% this year. One solid quarter does not make a rebound. CoreWeave, the battered AI computing provider, surprised Wall Street yesterday by posting better-than-expected earnings and raising its annual forecast. But shares are still down nearly 40% so far this year, and the company is still not throwing enough cash off its business to cover its roughly $41 billion of net debt.
“Narratives shifted, sentiment swung, and people scrutinized the build-out of AI,” CoreWeave CEO Michael Intrator said in a blog post that pledged to “calibrate investment” to demand, regulatory winds, and, probably most importantly, the availability of money. Intrator said the company would no longer be turning to unsecured borrowing to fund its business.