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Why CoreWeave Stock Is Skyrocketing Today
Key Points
CoreWeave beat Wall Street's sales and earnings targets in the second quarter.
The company also raised its full-year sales, adjusted operating income, and active power targets.
CoreWeave (NASDAQ: CRWV) stock is having a banner day in Wednesday's trading following the company's recent quarterly report. Its share price was up 18.6% as of noon ET. The S&P 500 was up 0.2% at the same point in the day's trading, and the Nasdaq Composite was up 0.5%.
Following the close of the market yesterday, CoreWeave published its second-quarter report. The earnings release has triggered a big rally for the stock today, and its share price is now up roughly 50% year to date as of this writing.
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CoreWeave topped Wall Street's Q2 estimates
CoreWeave reported a non-GAAP (adjusted) loss of $1.14 per share on sales of $2.58 billion in the second quarter, topping the average Wall Street analyst estimate's call for a per-share loss of $1.21 on sales of $2.56 billion. While the company's adjusted net loss expanded to roughly $567 million from $113 million in the year prior, revenue increased approximately 112.% compared to the prior-year period. The company's Q2 sales and earnings beats are playing a role in today's stock gains, but management's forward guidance is the more important catalyst.
What's next for CoreWeave?
CoreWeave anticipates that sales in the current quarter will be between $3.45 billion and $3.6 billion, and the artificial intelligence data center company also raised its full-year guidance. The company now expects that it will achieve 1.85 gigawatts of active power by the end of this year -- up from its prior target for 1.7 gigawatts of active power.
Management also raised its sales target for the year from between $12 billion and $13 billion to between $12.4 billion and $13.2 billion and adjusted its operating income target from between $900 million and $1.1 billion to between $960 million and $1.15 billion. The company's Q2 release shows that demand for AI-related cloud processing is continuing to expand at robust levels, and a wide range of investment firms have increased their price targets on the stock following the report.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.