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CoreWeave, Inc. CRWV has been doing pretty well since its inception, because of explosive revenue growth, strategic partnerships and increasing investor confidence. This company, which specializes in cloud computing for AI infrastructure, released its first-quarter report on Wednesday after going public in late March.
CoreWeave reported revenues of $981.6 million, marking a 420% year-over-year increase, widely surpassing expectations, whilst reporting a net loss of $149.6 million or $1.49/share. The company’s stock rose more than 50% in the week after the quarterly report.
The company has secured significant deals in the period, including a $16 billion agreement with OpenAI through 2029. Google has also become a customer. Nvidia has raised its stake in CoreWeave to 7%, signaling strong confidence in CoreWeave's capabilities and prospects.
CRWV is part of the Zacks Internet – Software industry. Over the past quarter, the company has advanced 100.7% since going public, while the sector has declined 7.4%.
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Since its IPO at $40/share, CRWV's stock has more than doubled, closing at $80.30 on Friday. May 16. The company operates 32 data centers housing more than 250,000 GPUs, positioning it as a key player in providing the computational power necessary for advanced AI applications.
CoreWeave has raised substantial debt to finance its growth, with plans to raise an additional $1.5 billion to refinance existing liabilities. The company’s strategic partnerships, rapid revenue growth and critical role in the expanding AI infrastructure landscape have contributed to its strong stock performance.
CRWV currently has a Zacks Rank #3 (Hold). BlackBerry Limited BB and F5, Inc. FFIV are notable competitors from the same space. BB currently carries a Zacks Rank #1 (Strong Buy), while F5 is ranked #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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This article originally published on Zacks Investment Research (zacks.com).