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Investing.com – Shares of CoreWeave fell by more than 10% in premarket U.S. trading on Wednesday after second-quarter revenue beat estimates thanks to artificial intelligence-powered demand for its cloud-based tools, but its losses for the period came in much wider than expected following a surge in expenses
For the three months ended June 30, Coreweave reported a loss per share of $0.60 on revenue of $1.21 billion, compared with Wall Street estimates for a loss of $0.20 on revenue of $1.08 billion.
Operating expenses for the quarter jumped to $1.19 billion, up from $317.7 million a year earlier.
Notable customer wins included a $4 billion expansion deal with OpenAI, new hyperscaler partnerships, and engagements with AI labs and enterprises such as BT Group (LON:BT) and Cohere.
"In addition, the company materially raised its 2025 revenue growth estimate by $250 million and noted that AI compute demand continues to strengthen," analysts at Mizuho (NYSE:MFG) said in a note.
New Jersey-based CoreWeave said it now expects full-year revenue to between $5.15 billion to $5.35 billion, adding that demand has been solid for AI inference, a technique of chain-of-thought reasoning that allows a trained model to draw conclusions from new data currently being examined by cutting-edge AI businesses like OpenAI.
However, the Mizuho analysts flagged that, despite the top-line outlook lift, CoreWeave "only reiterated" its earnings before interest and taxes expectation of $800 million to $830 million. They said this would imply an operating margin of 15.5% at the midpont -- 80 basis points below the company’s previous outlook of 16.3%.
(Scott Kanowsky contributed reporting.)