Important points
- Traders anticipate Coreweave’s stock might fluctuate by around 14% this week.
- The cloud computing firm is likely to report reduced losses and over double its revenue compared to last year when it reveals third-quarter results after market hours on Monday.
- Since going public in March, CoreWeave has only reported earnings twice. Each time, the stock saw an initial spike before declining.
Coreweave (CRWV) is set to announce its third-quarter earnings on Monday, and there’s a lot of buzz about how the stock will react post-release.
Options trading indicates that Coreweave’s stock could see a 14% change in either direction by the week’s end. If it goes up, it might reach $118.70, making up some of the losses from last week’s tech downturn, or it could drop to $89.30, a level not seen since early September.
Although Coreweave has only shared quarterly results twice since starting to trade, it’s been somewhat underwhelming for investors. Back in May, despite a huge 400% year-over-year revenue growth, the stock actually dropped over 2% the day after the announcement. Then in August, an unexpectedly large loss sent shares plummeting by more than 20%.
Why this is important
Since going public in March, CoreWeave’s stock has surged, largely due to rising investor interest in AI-driven revenue despite the company’s lack of profitability. How investors respond to Monday’s results may reveal broader market sentiment around AI stocks.
Interestingly, CoreWeave’s stock price jumped ahead of both previous earnings calls—gaining nearly 70% from its IPO to the May report and seeing a 120% increase before the August disclosure. However, things look different this time; heading into Monday, the stock’s down about 30% from its last earnings report.
Over the last year and a half, CoreWeave’s revenue has skyrocketed due to increased demand for AI cloud computing. The company secured significant contracts recently, including a $14 billion deal with Meta Platforms, a $6 billion deal with Nvidia, and a $6.5 billion expansion with OpenAI, the creator of ChatGPT.
Analysts expect the firm will reveal a third-quarter net loss of $284.4 million, which is an improvement from a $359.8 million loss reported last year. Revenue projections indicate a 120% increase, reaching $1.3 billion, per analyst estimates gathered by Visible Alpha.
Opinions are mixed on Coreweave’s future. Out of ten analysts rated by Visible Alpha, five suggest a “buy” rating, while the other half recommends holding. The average target price of $158.83 implies a potential increase of about 53% from last Friday’s closing price.
