The stock of CoreWeave (CRWV) is up 10% after the artificial intelligence (AI) cloud-computing start-up reported 420% sales growth in its first financial results as a publicly traded company.
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The New Jersey-based company announced an earnings per share (EPS) loss of -$1.49.
Revenue in the period totaled $981.6 million, which was ahead of the $853 million expected on Wall Street. CoreWeave’s sales were up 420% from $188.7 million a year ago.
Management attributed a net loss of -$314.6 million to stock-based compensation given to employees as part of the company’s initial public offering (IPO) that took place in March of this year. CoreWeave competes with other cloud providers such as Amazon (AMZN) and counts companies such as Alphabet (GOOGL) and Microsoft (MSFT) as customers.
OpenAI Deal
During the quarter, OpenAI committed to a five-year deal with CoreWeave that’s worth up to $11.90 billion. Despite the big contract with OpenAI and its strong print, there has been skepticism swirling around CoreWeave since the company went public in an underwhelming market debut that disappointed Wall Street.
Long-term uncertainty related to AI supply and demand, and worries about the U.S. economy have dampened enthusiasm for CRWV stock. After completing the biggest U.S. technology IPO since 2021, CoreWeave’s shares debut on the Nasdaq exchange in late March at $39. The stock has now risen to $71.
Is CRWV Stock a Buy?
As CoreWeave has only been publicly traded for less than two months, not many Wall Street firms offer ratings on the stock. So instead, we’ll look at the three-month share price performance. As one can see in the chart below, CRWV stock has gained 81.93% since its market debut.
