CoreWeave (CRWV) was teed up to letdown investors last night.
And it did on several fronts.
First, the company’s net loss was much higher than consensus.
Two, capital expenditures were a whopping $1 billion higher sequentially. And three, capex may climb another $500 million in the current quarter.
While I appreciate the company’s revenue backlog of $30.1 billion doubled year over year, the company’s mixed results and high debt load are real causes for concern. Hence, the sharp pre-market pullback.
Here are two important call outs this morning from DA Davidson analyst Gil Luria: