CoreWeave Q4 Forecast $0.50 Loss on $1.55B Revenue; Loan Rumor Trims 10%
CoreWeave shares plunged nearly 10% on February 20 after reports of a defaulted $4 billion Owl Capital loan, with both parties later denying financing issues and the stock rebounding 3.5% on February 23. The company anticipates a Q4 loss of $0.50 per share on $1.55 billion revenue versus prior quarter revenue of $1.36 billion.
1. Financing Rumor and Clarification
Reports on February 20 suggested a $4 billion loan from Owl Capital was in jeopardy, triggering a nearly 10% selloff. Later clarifications from both CoreWeave and Owl Capital denied any financing issues, driving a 3.5% rebound two days later.
2. Q4 Outlook and Recent Performance
CoreWeave is expected to report a fourth-quarter loss of $0.50 per share on $1.55 billion in revenue. In the prior quarter the company posted an $0.08 loss on $1.36 billion revenue, both ahead of consensus estimates.
3. Analyst Consensus
Macquarie and Mizuho maintain neutral ratings with price targets of $115 and $100 respectively, while Deutsche Bank upgraded to a buy rating with a $140 target.
4. Technical Indicators
Shares trade about 3% below the 20-day moving average of $93.83 and 5% above the 50-day average of $86.65. The RSI sits near 47.7, indicating neutral momentum, while the MACD line remains below its signal line, suggesting short-term downward pressure.