PANews reported on November 10th that CoreWeave's stock price plummeted 22% last week. Investors will now be closely watching CoreWeave's performance amid growing market concerns about high spending by companies like Meta and Microsoft (MSFT.O), and the cyclical nature of numerous AI deals centered around OpenAI announced in recent weeks. CoreWeave derives a significant portion of its sales from Meta, Microsoft, and Alphabet. Roundhill Financial CEO Dave Mazza stated, "Investors are becoming more sensitive to the balance between growth and spending. Doubling revenue is great, but if capital expenditures climb even faster, that arithmetic can't last forever." CoreWeave already faces questions about the cyclicality of its business arrangements, its debt burden, and its reliance on a few large customers. The company expects revenue of nearly $1.3 billion this quarter, more than double the figure from the same period last year, with an adjusted loss of 36 cents per share, compared to a loss of 53 cents per share in the second quarter, attributed to its rising capital expenditures.


