This article first appeared on GuruFocus.
CoreWeave Inc. (CRWV, Financials), the AI cloud infrastructure company, heads into second-quarter earnings with options traders bracing for another sharp move in the stock.
The options market is pricing in a swing of about 15.5% in either direction after the Aug. 11 report, equal to roughly $13.20 per share based on recent prices.
Wall Street expects revenue of about $2.55 billion, up roughly 111% from a year earlier. Analysts also expect an adjusted loss of $1.22 per share as CoreWeave continues spending heavily to expand its data-center network.
That spending is central to the investment case. CoreWeave has benefited from booming demand for AI computing, but building capacity fast enough to serve customers such as Microsoft, OpenAI and Meta requires significant capital.
The stock is already up about 19% this year, raising the bar for another strong report.
Investors will watch second-half guidance, capital spending and new customer wins for signs that CoreWeave can keep growing quickly without allowing infrastructure costs to overwhelm the business.
https://finance.yahoo.com/markets/stocks/articles/coreweave-faces-15-5-earnings-153907526.html
