CoreWeave Reports 134% YoY Revenue Growth to $1.4 Billion in Q3
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Revenue Surge: CoreWeave's Q3 revenue soared 134% year-over-year to $1.4 billion, reflecting strong demand in the AI computing sector and significant market potential, with expectations for continued client acquisition in the future.
- Backlog Strength: The company boasts a revenue backlog of $55.6 billion, with 40% expected to be realized in the next 24 months, providing robust support for future revenue growth, potentially bringing revenue close to $8 billion by 2026.
- Capital Expenditure Challenges: Despite generating $4.3 billion in revenue over the past 12 months, CoreWeave's capital expenditures approached $10 billion, highlighting immense pressure from infrastructure investments, and facing a risk of funding shortages if profitability is not achieved.
- Profitability Outlook Uncertain: CoreWeave must continue to sign new clients to maintain investor confidence; however, it has yet to approach profitability, necessitating caution for investors considering opportunities in the highly competitive cloud computing market.
CRWV
$83+Infinity%1D
Analyst Views on CRWV
Wall Street analysts forecast CRWV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CRWV is 149.70 USD with a low forecast of 36.00 USD and a high forecast of 430.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
25 Analyst Rating
13 Buy
11 Hold
1 Sell
Moderate Buy
Current: 67.680
Low
36.00
Averages
149.70
High
430.00
Current: 67.680
Low
36.00
Averages
149.70
High
430.00
About CRWV
CoreWeave, Inc. is a cloud infrastructure technology company. The Company offers the CoreWeave Cloud Platform, which consists of software and cloud services that deliver the automation and efficiency needed to manage complex artificial intelligence (AI) infrastructure. Its CoreWeave Cloud Platform is an integrated solution that is purpose-built for running AI workloads such as model training and inference. Its solutions include infrastructure services, managed software services, and application software services. Its Infrastructure Services provide its customers with access to advanced graphics processing unit (GPU) and central processing unit (CPU) compute, highly performant networking, and storage. Its Managed Software Services include CKS, a flexible virtual private cloud and a bare metal service that runs kubernetes directly on high-performance servers. Its Application Software Services build on top of its infrastructure and managed software services, integrating additional tools.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
