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CoreWeave Shares Slide Nearly 30% After Guidance Cut Highlights Delivery Risks

Despite large multi‑year contracts plus an Nvidia tie‑up, analysts remain split on near‑term execution.

Overview

  • CoreWeave lowered its 2025 revenue outlook to $5.1 billion from $5.25 billion, citing delays at a third‑party data‑center provider and compute supply constraints.
  • Q3 revenue reached $1.36 billion, more than doubling year over year, while contracted backlog jumped to $55.6 billion, including $22.4 billion from OpenAI and $14.2 billion from Meta.
  • Shares fell nearly 30% over five trading days to roughly $77–$80, though the stock remains up more than 100% year to date.
  • Profitability pressures persist with a 4% operating margin and about $8 billion in negative free cash flow over the last 12 months, alongside heavy spending and rising debt reported in recent filings.
  • Nvidia holds roughly 7% of the company and has a $6.3 billion capacity guarantee through 2032, while Wall Street shows 13 Buy, 12 Hold, and 1 Sell ratings with an average price target near $146.