CoreWeave (CRWV) Stock Drops Despite Strong Q3 Results, Analyst Sees Upside Potential
CoreWeave reported a mixed third quarter with revenue more than doubling year-over-year to $1.36 billion, surpassing analyst estimates. Losses narrowed to $0.22 per share, beating expectations of a $0.51 per share loss. Despite these strong results, shares tumbled 16% on Tuesday due to delays in data center shell deliveries.
Management issued cautious guidance for Q4, projecting revenue of $1.54 billion—below the Street's $1.8 billion estimate—citing temporary supply constraints rather than demand weakness. The company maintains a robust $55.6 billion backlog, supported by major contracts with Meta and OpenAI, signaling sustained demand for its AI infrastructure services.
Citizens JMP analyst Greg P. Miller sees significant upside potential, suggesting the stock could double despite near-term headwinds. The delays are expected to resolve by early 2026, with the long-term growth narrative remaining intact.
