CoreWeave flags hit from data center delay, shares fall

Core Insights - CoreWeave, backed by Nvidia, has revised its annual revenue forecast downwards due to a delay from a third-party data center partner, impacting its stock price which fell over 10% in early trading [1] - The new revenue forecast for 2025 is between $5.05 billion and $5.15 billion, lower than the previous estimate of $5.15 billion to $5.35 billion and below analysts' expectations of $5.29 billion [2] Financial Performance - CoreWeave's third-quarter revenue more than doubled to $1.36 billion, surpassing the estimate of $1.29 billion [3] - The adjusted operating income margin decreased to 16% in the third quarter from 21% a year earlier [5] Strategic Partnerships - CoreWeave has established itself as a significant infrastructure partner, securing multibillion-dollar contracts, including a $14 billion deal with Meta Platforms and a $6.5 billion contract with OpenAI [3] Future Outlook - The company anticipates capital spending to more than double in 2025, projecting expenditures between $12 billion and $14 billion [4] - CoreWeave is transitioning from a large-scale Ethereum miner to a cloud platform supporting AI applications, indicating a strategic shift in its business model [4] Market Challenges - The company faces potential margin pressures due to rising AI chip prices, increased competition for computing power, and high costs associated with expanding its cloud infrastructure [6]