CoreWeave (CRWV) recently announced its third-quarter results, revealing a smaller-than-anticipated loss and exceeding revenue expectations, driven by the soaring demand for artificial intelligence computing resources. Despite this positive news, the stock fluctuated as investors assessed both the extent of the earnings surprise and the growth of its revenue backlog, a vital indicator of future performance.
For the September quarter, CoreWeave reported a loss of 22 cents per share, a significant improvement from the $1.82 loss reported a year prior. Revenue surged 133% to reach $1.365 billion, surpassing analysts’ forecasts, which had predicted a 40-cent loss on revenue of $1.286 billion.
As a cloud computing service provider, CoreWeave specializes in renting out servers equipped with Nvidia’s AI accelerators. Notably, the company reported a remarkable remaining performance obligation (RPO) of $55.6 billion, an 85% increase from $30 billion in the preceding quarter. RPO represents future revenue expected from existing customer contracts yet to be fulfilled, an essential metric for cloud firms as they recognize revenue only upon service delivery.
In after-hours trading on Monday, CoreWeave’s shares dipped over 1% to $104.01. This follows an impressive 160% rally in 2025 leading up to the earnings announcement, with shares previously peaking at an all-time high of $187 on June 20.
CoreWeave primarily caters to AI model developers and application engineers, offering data centers meticulously designed for handling AI workloads. With Nvidia owning a 7% stake in the company, their partnership is strategically significant, especially as both companies focus on capitalizing on the burgeoning AI sector.
Additionally, CoreWeave recently decided against pursuing an all-stock acquisition of Core Scientific (CORZ), which reflects a cautious approach towards expansion. Its initial public offering capitalized $1.5 billion back in March, marking a significant financial milestone.
From a technical perspective, CoreWeave’s largest customer is Microsoft, followed closely by Meta Platforms. While there are optimistic projections concerning the potential of the AI market for CoreWeave, concerns linger over customer concentration and rising debt levels.
CoreWeave stock currently exhibits a Composite Rating of 60 out of a possible 99 based on key fundamental and technical metrics, which helps investors assess its strengths and weaknesses. Furthermore, with a relatively small float, its stock may experience heightened volatility. The Accumulation/Distribution Rating stands at B, indicating moderate institutional buying interest over the recent 13-week trading period.
Founded in 2017 initially as a cryptocurrency mining operation, CoreWeave’s transformation into a cloud computing service provider underscores its adaptability in an evolving tech landscape. Keeping an eye on this rapidly changing industry will be crucial for investors as AI continues to reshape various sectors.
