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CoreWeave Shares Drop Nearly 30% After Cutting 2025 Revenue Outlook to $5.1 Billion

Investor attention shifts to delivery delays, thin margins, heavy cash needs despite a $55.6 billion backlog with Nvidia backing.

Overview

  • Management trimmed its 2025 sales outlook to $5.1 billion from $5.25 billion, citing delays at a third‑party data‑center site plus GPU supply constraints.
  • Third‑quarter revenue rose to about $1.36 billion, while contracted backlog reached $55.6 billion with commitments from OpenAI at $22.4 billion and Meta at $14.2 billion through 2031.
  • Profitability remains pressured with roughly 4% operating margin, about $8 billion negative free cash flow over the past 12 months, and higher interest costs on sizable debt.
  • Shares fell nearly 30% over five sessions to roughly $77–$80 yet remain more than 100% higher year to date and closer to the $40 IPO price than recent highs.
  • Nvidia owns roughly 7% of CoreWeave and provides a $6.3 billion capacity backstop through 2032, while analyst coverage is split at 13 Buy, 12 Hold, and 1 Sell with an average target near $146.