Cloud Computing Firm Shows Strong Growth Despite Market Wobbles

Smaller Loss, Surge in Revenue

CoreWeave, a cloud computing company, recently shared its third-quarter results. The company reported a smaller loss than expected, with a loss of 22 cents per share compared to a much larger loss of $1.82 the previous year. Revenue surged by 133%, reaching $1.365 billion, which was higher than what analysts had predicted.

Driving Demand for AI Computing Power

The company's success is largely due to the growing demand for artificial intelligence (AI) computing power. CoreWeave provides cloud services using servers equipped with Nvidia's AI accelerators. This demand is reflected in the company's remaining performance obligations (RPO), which increased by 85% to $55.6 billion. RPO is a measure of future revenue expected from existing customer contracts.

Stock Volatility and Market Reactions

Despite the positive news, CoreWeave's stock took a hit, falling more than 5% in extended trading. This drop came after a significant rise in 2025, with shares jumping 160% at one point. The stock's volatility can be attributed to its relatively small float, making it more susceptible to market fluctuations.

CoreWeave's Data Centers and Customer Base

CoreWeave's data centers are specifically designed to handle AI workloads, catering to AI model builders and app developers. The company's largest customers include tech giants like Microsoft and Meta Platforms. However, some analysts have raised concerns about customer concentration and the company's high debt levels.

Company Background and Recent Developments

CoreWeave was originally founded as a cryptocurrency miner in 2017 before pivoting to cloud computing services. The company went public in March, raising $1.5 billion in its initial public offering. Recently, CoreWeave terminated a proposed acquisition of Core Scientific, which was to be an all-stock transaction.