CoreWeave shares surged after the company narrowed losses in Q2

CoreWeave (NASDAQ: CRWV), a provider of AI cloud solutions, reported second-quarter results after the close on Tuesday, narrowing its loss per share and meeting revenue expectations. The stock rose about 18% in premarket trading. “This quarter, CoreWeave reached an important inflection point as our scale began to translate into expanding operating leverage,” said CEO Michael Intrator. “Customer demand is accelerating as enterprise adoption expands, and we continue to enhance our technology platform.”

In the second quarter, CoreWeave posted a loss per share of -$1.14 on revenue of $2.5 billion. According to Bloomberg analysts’ consensus estimates, Wall Street was expecting a loss per share of -$1.41 on revenue of $2.5 billion. CoreWeave shares have fallen more than 30% since the last earnings report in May amid concerns about revenue growth and the company’s spending plans.

The company’s adjusted operating profit for the quarter came in at $128 million, topping the consensus forecast of $66 million. CoreWeave is investing billions to build data centers to house AI chips that companies such as Meta and Anthropic lease to run their own AI models and services. The company’s backlog reached $104 billion, in line with expectations.