CoreWeave Stock Gains Friday: What's Happening?

CoreWeave Inc. (NASDAQ:CRWV) shares are trading higher Friday in a recovery after losses Thursday, with earnings due Tuesday.

• CoreWeave stock is surging to new heights today. Why are CRWV shares rallying?

AI Cloud Stocks Extend Selloff as Democrats Gain Ground in Midterms

Shares of AI cloud services companies traded lower after Democrats made significant gains in the midterm elections, including victories in key data center states Texas and Georgia. The results raised concerns that increased regulatory hurdles could delay data center projects and slow AI infrastructure expansion.

CoreWeave fell 9.8% Thursday as the broader market tanked, with the Dow Jones Industrial Average shedding more than 1,800 points, according to CBS News. Nebius Group N.V. (NASDAQ:NBIS) and IREN Limited (NASDAQ:IREN) also extended their selloff as investors reassessed the outlook for AI infrastructure, while hyperscalers including Amazon.com Inc. (NASDAQ:AMZN) held up better.

Democrat Gina Hinojosa won the Texas governor’s race after campaigning for an immediate moratorium on new data centers, and Wells Fargo estimates that Texas holds 27% of planned U.S. data center gigawatts. Nomura said projects planned for 2028 face greater exposure to permitting delays, while much of the capacity expected online in 2027 is already under construction, which limits the near-term effect.

CoreWeave to Report Third-Quarter Results Tuesday

CoreWeave is scheduled to report third-quarter earnings Tuesday, Nov. 10, after the market closes, with a call at 5 p.m. ET. Analysts estimate a loss of $1.16 per share along with revenue of $3.55 billion. For the prior quarter, CoreWeave reported an adjusted loss of $1.03 per share, beating the consensus estimate of a loss of $1.22, and revenue of $2.58 billion, up 112% from a year earlier, beating the consensus estimate of $2.56 billion.

CoreWeave guided to third-quarter revenue of $3.45 billion to $3.60 billion and adjusted operating income of $200 million to $260 million.

What to Watch: Backlog, Capex and Financing Costs

Investors will be closely tracking CoreWeave’s backlog, which was $104 billion at the end of the second quarter, up 246% from a year earlier, excluding more than $25 billion of net new customer commitments added early in the third quarter. Capital spending will also be in focus, with full-year guidance of $35 billion to $39 billion and third-quarter capital spending of $11.5 billion to $13.5 billion.

Financing costs are a factor too, since CoreWeave guided to third-quarter interest expense of $860 million to $940 million. On the second-quarter call, management said regulatory and community opposition to data center builds could affect future deployment locations, though guidance was unaffected, so any update on that point will be watched after the election results.

CoreWeave Stock Surges

CRWV Price Action: At the time of publication, CoreWeave shares are trading 10.83% higher at $48.39, according to data from Benzinga Pro.

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