CoreWeave’s stock dropped 20% after reporting a larger-than-expected loss in its second quarterly financial results. The adjusted loss was 27 cents per share, compared to analysts’ expectations of 21 cents per share. The lock-up period following its IPO expiration may add volatility to shares, according to analysts at Stifel.

CoreWeave projects $1.26 billion to $1.30 billion in revenue for the current quarter, higher than the $1.25 billion forecasted by analysts. Revenue guidance for 2025 was raised to $5.15 billion to $5.35 billion, surpassing previous estimates. Some analysts are cautious due to potential dilution and uncertainty, while others point out delays in spending may impact revenue recognition.

Revenue for CoreWeave more than tripled to $1.21 billion from a year ago, exceeding Wall Street’s forecast of $1.08 billion. The company, serving customers like OpenAI, Microsoft, and Nvidia, is benefitting from strong AI demand. The recent acquisition of Weights and Biases for $1.4 billion and a $30.1 billion revenue backlog highlight growth opportunities for CoreWeave.

Read more at CNBC: CoreWeave drops 20% on wider-than-expected loss ahead of lock-up expiry