CoreWeave (CRWV), an artificial intelligence (AI) and cloud-computing company that operates its own data centers, has reported third-quarter financial results that beat Wall Street forecasts across the board.
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The New Jersey-based company announced an earnings per share (EPS) loss of $0.22, which was much better than a loss of $0.54 expected on Wall Street. A year earlier, CoreWeave announced a loss of $1.82 per share.
The company’s revenue in Q3 totaled $1.36 billion, which surpassed the $1.29 billion consensus forecast of analysts who track the company’s progress. CoreWeave’s sales more than doubled from $583.9 million a year ago. CRWV stock was up about 1% in after-hours trading on news of its latest financial results.
Compute Issues
Management at CoreWeave said that the company’s revenue backlog increased to $55.6 billion at the end of the third quarter, nearly double the $30.1 billion at the end of this year’s second quarter. If there was one blemish on the Q3 print, it’s that CoreWeave said it is having difficulty getting as much compute power for its data centers as needed.
CoreWeave reported active power of 590 megawatts at the end of the third quarter, while analysts were anticipating nearly 625 megawatts of power. The company recently announced a $14 billion deal with Meta Platforms (META) for AI compute, and a $6.3 billion agreement with Nvidia (NVDA) for any unused cloud computing capacity.
However, CoreWeave’s recent attempts to acquire data center operator Core Scientific (CORZ) failed as shareholders of that company voted overwhelmingly against the proposed takeover.
Is CRWV Stock a Buy?
The stock of CoreWeave has a consensus Moderate Buy rating among 25 Wall Street analysts. That rating is based on 13 Buy, 11 Hold, and one Sell recommendation assigned in the last three months. The average CRWV price target of $156.87 implies 49.43% upside from current levels. These ratings could change after the company’s financial results.
