coreweave Shares rose 13% in premarket trading Wednesday after NeoCloud reported better-than-expected quarterly profits and raised its full-year outlook.
Neoclouds like CoreWeave, Nebius and IREN have come under increased scrutiny this month as investors evaluate the sustainability of AI trading. Coreweave, in particular, sparked alarm when CDS spreads widened above 11%, generally considered a distressed level, as investors had to pay for protection against default.
The company said in a statement Tuesday that third-quarter sales rose 168% to $3.7 billion.
The three months ended Sept. 30 were a “groundbreaking quarter” for Coreweave, CEO Michael Intrater said, adding that growth was supported by multiple sources of financing, including customer commitments and financing backed by approximately $9 billion in customer advances and guarantees.
As of 4:18 a.m. ET, the stock was up 13.2%. Other Neclouds also rose in pre-market trading, with Nevius up 11.4% and Airen 7.9%.
CoreWeave stock this year.
CoreWeave expects adjusted operating income to be between $1.275 billion and $1.375 billion on sales of $13.0 billion to $13.3 billion. Analysts surveyed by Visible Alpha expected adjusted operating profit to be $1.07 billion, while analysts surveyed by LSEG expected 2026 revenue to be $12.86 billion.
John Blank, chief equity strategist at Zacks, said on CNBC’s “Squawk Box Europe” that NeoCloud has been successful in allaying funding concerns by moving away from unsecured debt financing.
“This could be the bottom for CoreWeave,” Blank said Wednesday. “But the stock is in such tatters that you have to believe that the upside is worth more than the downside at this point.”
Tune in as CoreWeave CO Michael Intrator appears on CNBC TV at 9:50 a.m. ET to discuss the company’s earnings. Watch in real time on CNBC+ or CNBC Pro streams.
—CNBC’s Jordan Novet contributed to this report.
