Why CoreWeave Stock Collapsed 25.4% This Week

Shares of artificial intelligence (AI) cloud computing upstart CoreWeave (NASDAQ: CRWV) sank 25.4% this week after reporting its Q3 earnings, according to data from S&P Global Market Intelligence, as of 4 p.m. ET on Friday, Nov. 14. The company is growing incredibly quickly, but is highly unprofitable and burning a lot of cash as it aims to scale up its AI infrastructure for big tech companies.As of this writing, CoreWeave stock trades below $80, heading closer to its initial public offering (IPO) price of $40. Here's why investors are souring on CoreWeave stock after its latest earnings result.On Nov. 10, CoreWeave reported its Q3 earnings for the three months ending in September. The cloud computing infrastructure provider is growing quickly, with revenue up over 100% year over year to $1.36 billion. By signing long-term deals with AI leaders such as Nvidia and OpenAI, it now has a backlog of $55 billion, giving it visibility to reinvest for growth.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool