CoreWeave reported an adjusted loss of $1.03 per share for the second quarter, better than the anticipated $1.20 loss, while revenue surged to $2.58 billion, a 112% year-over-year increase, surpassing the $2.56 billion consensus estimate. The company highlighted a substantial revenue backlog of $104 billion, alongside over $25 billion in new commitments made in the current quarter.
Active power capacity reached 1.5 gigawatts by June 30. Following the report, CoreWeave's shares rose over 18% in premarket trading, prompting analysts from firms like JPMorgan and Bernstein to raise their price targets and express optimism about the company's future.
Despite a recent 16% decline in shares due to concerns about its business model and competition from Meta, analysts noted CoreWeave's improving margins and expanding customer base. Deutsche Bank maintained a 'Buy' rating with a $150 price target, citing strong execution and a growing backlog.
Other analysts echoed similar sentiments, with Bank of America projecting further margin improvements and price increases driven by high demand. However, Bernstein maintained a cautious stance with an 'Underperform' rating, despite acknowledging the strong quarterly performance.
Overall, the results have sparked renewed interest in CoreWeave's stock, although the market remains divided on its long-term outlook