CoreWeave reported Q3 earnings, with revenue up over 100% year over year to $1.36 billion. The company has a backlog of $55 billion, but slim profit margins and huge cash burn. Shares sank 25.4%, trading below $80. CoreWeave guidance of $5.05-$5.15 billion was below expectations, making it a risky buy.

CoreWeave is rapidly growing its AI cloud computing infrastructure but struggling with profitability. It has negative free cash flow of $8 billion over the last 12 months. Despite a backlog of $55 billion, the stock has fallen to a market cap of $38 billion. Investors are wary due to high debt and low profit margins.

CoreWeave stock trades below $80 after reporting Q3 earnings. The company is highly unprofitable, burning cash to scale up its AI infrastructure. With a backlog of $55 billion and revenue guidance below expectations, investors are cautious. CoreWeave’s risky financials and debt pile make it a stock to avoid for now.

Read more at Yahoo Finance: Why CoreWeave Stock Collapsed 25.4% This Week