CoreWeave shares sink as weak outlook offsets big AI deals

Core Insights - CoreWeave shares fell after the company provided lower-than-expected full-year guidance despite strong third-quarter results and new AI partnerships [1][2] - The company reported third-quarter revenue of $1.36 billion, exceeding analyst expectations of approximately $1.29 billion, with a year-over-year revenue increase of 134% [1][2] - CoreWeave's net loss narrowed to $110 million from about $360 million in the previous year [1] Revenue Growth and Contracts - Quarterly growth was fueled by significant contracts with major tech firms, including a $6.5 billion expansion with OpenAI, a six-year deal with Meta worth up to $14.2 billion, and a $6.3 billion agreement with Nvidia for cloud computing capacity [2] - Despite these gains, the company forecasted 2025 revenue between $5.05 billion and $5.15 billion, which is below analysts' average estimate of $5.29 billion [2] Operational Challenges - The CEO indicated that construction delays at one data center are affecting the near-term outlook, although the company has a total of 41 data centers [3] - The company faces constraints related to the availability of "powered-shell" data centers, which require CoreWeave to install its own equipment [4] - CoreWeave is constructing its own data center infrastructure in Pennsylvania and expects most delays to be resolved by early next year [5] Capital Expenditure - The finance chief stated that capital spending for 2026 will be significantly higher than this year's estimated $12 billion to $14 billion [5]