Shares of AI cloud provider CoreWeave (CRWV) tanked on Tuesday after CEO Mike Intrator explained that a delay at one of its third-party data center partners caused the company to lower its full-year revenue forecast. In an interview with CNBC, Intrator said that everything in the quarter went as planned except for a single delay at one data center. He later clarified that it was one provider operating multiple locations. CNBC’s Jim Cramer noted that the affected sites appear to be tied to Core Scientific (CORZ), which is the company that CoreWeave had tried to buy earlier this year for $9 billion.
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Interestingly, JPMorgan’s (JPM) five-star-rated Mark Murphy asked if Core Scientific was the provider in question during CoreWeave’s earnings call, but Intrator declined to name the company. At one point, he said that the issue involved just one data center. Additionally, when asked how many facilities were affected, CoreWeave did not provide a specific number and instead referred back to comments made by Intrator.
Moreover, he added that the company reacted quickly in Q3 when it noticed delays and doesn’t expect the issue to affect its contract backlog. Even with the delay, CoreWeave posted strong Q3 results, bringing in $1.36 billion in revenue, a 134% increase from $583.9 million in the same quarter last year. Still, the company now expects 2025 revenue to fall between $5.05 billion and $5.15 billion, which is below the $5.29 billion analysts had predicted. Nevertheless, Intrator reassured investors that the company will still earn the full value from its contracts.
Is CRWV Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CRWV stock based on 12 Buys, 13 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average CRWV price target of $149.29 per share implies 64% upside potential.
