CoreWeave shares jumped in premarket trading Wednesday after the neocloud posted quarterly earnings that beat estimates and raised its guidance for the year.
Neoclouds such as CoreWeave, Nebius and IREN have come under scrutiny this month as investors assessed the sustainability of the AI trade. CoreWeave, in particular, sparked alarm when spreads on its CDS widened past 11%, generally viewed as a distress level, as investors have to pay up for protection against default.
Revenue jumped 168% to $3.7 billion in the third quarter, the company said in a Tuesday statement.
The three months to Sept. 30 marked a "breakout quarter" for CoreWeave, CEO Michael Intrator said, adding that growth was supported by multiple sources of funding, including financing backed by customer contracts and around $9 billion in customer prepayments and deposits.
Shares were 15.4% higher as of 4:06 a.m. ET.
CoreWeave shares this year.
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Source: CNBC · April Roach
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