Lates News

Cloud computing company CoreWeave's stock price plummeted 22% last week. Investors are now closely monitoring CoreWeave's performance as the market is becoming increasingly concerned about the high expenses of companies like Meta and Microsoft (MSFT.O), as well as the cyclicality of many AI transactions centered around OpenAI announced in recent weeks. Most of CoreWeave's sales come from Meta, Microsoft, and Alphabet. Dave Mazza, CEO of Roundhill Financial, said, "Investors are becoming more sensitive to the balance between growth and expenses. Doubling revenue is great, but if capital expenses climb faster, this arithmetic cannot sustain indefinitely." CoreWeave is facing questions about the cyclicality of its business arrangements, debt burden, and reliance on a few major clients. The company expects revenue for this quarter to be close to $1.3 billion, more than double the figure from the same period last year, with an adjusted loss per share of 36 cents compared to a loss of 53 cents in the second quarter, attributed to its rising capital expenses.