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Key Takeaways
CoreWeave’s latest earnings report is set to be released Tuesday afternoon, with the stock seen swinging up to 13% by the end of the week following the results.
Sales are projected to have more than doubled from a year ago, though losses likely widened as the company spends on hardware to increase its compute capacity.
CoreWeave is scheduled to release its quarterly earnings after the closing bell Tuesday, with traders expecting a sizable move in the cloud computing provider’s stock.
Based on current options pricing, CoreWeave (CRWV) stock is seen swinging up to 13% in either direction by the end of the week following the results. A move of that size from Friday’s close could see the shares climb back above $102, or slip as low as $79.
CoreWeave shares have gained nearly 30% since the start of the year, but are close to 35% off their highs leading up to the company’s last report in May, amid worries about delays in data center construction. Shares of the cloud provider, which went public last March, have been boosted this year by deals with big names including Meta Platforms (META) and Nvidia (NVDA), along with its addition to the Nasdaq 100 index.
Why This Matters to Investors
CoreWeave’s spending and delays in data center construction have rattled support for the shares lately, though they remain higher for the year.
Bank of America analysts recently wrote that “demand for GPU capacity remains elevated and customer commitments continue to grow, we believe the key debate is less about demand and more about execution,” including how quickly compute capacity can be brought online and the rate at which CoreWeave’s margins can improve. Oppenheimer analysts said they see concerns about capacity delays as “overblown.”
CoreWeave’s second-quarter revenue is expected to have more than doubled year-over-year to $2.56 billion, though its losses likely widened to $1.40 per share, per Visible Alpha, as costs for some hardware components surged.
Analysts are largely bullish on CoreWeave stock, with 11 of the 14 analysts with current ratings tracked by Visible Alpha calling the stock a “buy,” compared to three neutral ratings. Their average price target of about $147 would suggest more than 60% upside from Friday’s close.
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