CoreWeave's three co-founders, CEO Michael Intrator, Chief Strategy Officer Brian Venturo and Chief Development Officer Brannin McBee, have sold $3.3 billion of stock since the March 28, 2025 IPO, with $2.4 billion of it in 2026, through pre-scheduled sales the company calls standard. They still own about 20% combined. CoreWeave fell 11.91% to $61.39 on Oct. 16 amid an AI infrastructure selloff, near its 52-week low, and is down 25.21% from its Oct. 9 close of $82.08. Second-quarter revenue rose 112.3% to $2.575 billion and backlog reached about $104 billion, but interest expense climbed to $640 million from $267 million and free cash flow was negative $5.743 billion. The next test is the third-quarter report, expected around Nov. 9, where interest expense above the $860 to $940 million forecast or a close below $59.51 would add pressure.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: CoreWeave’s Founders Have Sold $3.3 Billion of Stock Since Its IPO
Read the original on Yahoo Finance ↗
Keywords
CoreWeaveartificial intelligencedata centersIPO
Open a keyword to see other news on the same topic.
Related news
- Microsoft pulls out of Nscale U . K . data - center deal over power - supply issues
Microsoft has withdrawn from a deal to lease capacity at Nscale's 50-megawatt Loughton data center in the U.K. because of power-supply issues, a setback as Nscale prepares to go public. The facility was to host about 23,000 Nvidia GB300 chips for Microsoft Azure and was expected to go live by the end of this year, but that timeline no longer holds due to challenges with the U.K. power grid. Microsoft says it remains committed to Nscale and that the decision relates to a single site, while Nscale says it is exploring alternative power sources and its relationship with Microsoft remains strong. The article notes that clients can pull out of deals when projects are delayed, threatening revenue. Nscale recently filed for a U.S. IPO and last month raised $3.36 billion through convertible loan notes in a pre-IPO round.
- Microsoft backs out of Nscale data center deal: What to know
Microsoft has withdrawn from a UK data center deal with neocloud startup Nscale, which had been aiming for a $3 billion IPO as early as late October. The 8:30 hosts Pras Subramanian, Jake Conley and Julie Hyman discuss Microsoft's reasons for pulling out.
- Microsoft pulls out of UK data centre deal with Nscale, Telegraph reports
According to the Telegraph, Microsoft has withdrawn from a planned agreement to be the anchor tenant of Nscale's proposed data centre in Loughton, Essex, though no specific reason was established. The project has faced delays and power supply problems, with authorities reportedly suggesting a grid connection might not come until the 2030s. Nscale's flagship data centre in Norway is also about six months behind schedule, with only 6.4 megawatts of its planned 30-megawatt capacity operational. The setback comes ahead of a possible IPO that could raise as much as $3 billion as early as October, while Microsoft and Anthropic account for about 85% of Nscale's contracts. Nscale says it remains committed to Loughton and that its relationship with Microsoft is strong, while Microsoft has not commented publicly.
- Microsoft Scraps UK Data Center Deal With Nscale, Telegraph Says
The Telegraph reports that Microsoft has pulled out of a planned data center deal with the British neocloud Nscale at Loughton, Essex, without giving a specific reason. The newspaper said the site has faced a series of delays, and authorities have told Nscale they don't expect a power supply there until the 2030s. Nscale's flagship site in Norway is also six months behind schedule, with only 6.4 megawatts of its intended 30-megawatt data center running. According to an IPO filing, Microsoft and Anthropic account for around 85% of Nscale's contracts, and Microsoft's withdrawal comes as Nscale prepares an IPO seeking up to $3 billion. Nscale says it remains committed to the Loughton project and its relationship with Microsoft is strong, and that the London-wide grid issue has no impact on its other contracts.
- CoreWeave Dropped 20% Last Week. Is It Time to Panic or Buy?
CoreWeave shares fell more than 20% as of Oct. 16, driven mainly by concerns over debt and spending. The company carries about $35 billion in total debt against $5.5 billion in cash, with net interest payments reaching $640 million in the second quarter alone, unsecured bond yields approaching 15%, and an S&P rating of B+. Capital expenditure was just over $16 billion in the first half of 2026 and could reach $39 billion for the year, roughly triple its $12.4 to $13.2 billion revenue guidance. States are also weighing restrictions on data centers. On the positive side, second-quarter revenue rose 112% year over year and the backlog exceeded $104 billion. The author has reservations and sees the drop as an opportunity only for the most risk-tolerant investors, who might build a position slowly, while the company needs to prove it can convert its backlog efficiently and manage debt.
- Neoclouds: Goldman Sachs Upgrades CoreWeave. Microsoft Shelves Nscale Project.
Related markets
Latest news
- Is Nvidia Stock Really Trading for Just 8 Times 2030 Earnings?
Nvidia is the market's most valuable company, with a market cap above $5 trillion. It trades at 27 times adjusted trailing earnings, but only about 8 times analysts' estimate for fiscal 2030 earnings, a figure the author stresses is a moving target. Revenue growth accelerated from 56% in Q2 FY 2026 to 106% in Q2 FY 2027, though guidance points to a slight slowdown in the current quarter. The stock trades at 13 times next year's earnings, and the board recently authorized a record $150 billion in share repurchases. The author also acknowledges risks such as slower growth or contracting net margins.
- US Orders Civilian Agencies to Rip DeepSeek Out of Government Systems
The U.S. Department of Homeland Security on Monday ordered civilian federal agencies to remove DeepSeek products and third-party services built on the model from their IT systems, and to stop buying them. The notice warns that using DeepSeek may transfer sensitive data to China and could produce intelligence on U.S. persons and agencies. The Commerce Department, the Navy, and the states of New York, Tennessee and Virginia had already restricted DeepSeek. The FCC votes on October 29 on barring Chinese labs from testing electronics for U.S. use.
- Tesla-SpaceX merger is 'not so easy': Analyst
Speculation about a possible merger between SpaceX (SPCX) and Tesla (TSLA) has grown on Wall Street in recent weeks. RBC Capital Markets analyst Tom Narayan says it would not be simple: SpaceX would have to acquire Tesla, likely in an all-stock deal, and would need to pay a strong premium. He sets a $480 price target for Tesla, while the shares trade near $367. The longer-term focus may be Terafab, Elon Musk's chip initiative aimed at cutting production costs by up to 90% and bypassing Nvidia and TSMC. Musk currently controls 85% of SpaceX's voting rights and 20% of Tesla's.
- Is Nvidia (NVDA) Stock Priced Right?
Chip stocks fell sharply last week, and Nvidia (NVDA) dropped nearly 2% as investors worried that heavily indebted AI companies would face higher borrowing costs after bond yields jumped for CoreWeave, a cloud company Nvidia backs. CoreWeave shares had fallen more than 15% the day before. Nvidia's own numbers show no sign of that stress: it sold $96.2 billion of chips and systems in the quarter ended July, up 106% from a year earlier, mostly from data center sales. Its net profit margin was 63.66% over the past 12 months, and management expects $108.0 billion in revenue next quarter, assuming no data center sales to China. The key risk is whether customers can keep paying for chips if interest rates stay high, and the planned partnerships to bring over $500 billion of outside capital into AI infrastructure have not yet become definitive agreements.
- Networking Stocks Rally as Tech Rebound Lifts AI Gear Makers: Ciena and Arista Climb 4%, but Cisco Barely Moves
Networking stocks rallied with the tech rebound as suppliers of AI data center gear drew buying: Ciena (CIEN) rose 4% to $347.48 and Arista Networks (ANET) climbed 4% to $183.32, well ahead of the iShares U.S. Technology ETF (IYW) at 1.29% and the Invesco QQQ Trust (QQQ) at 1.31%, while Cisco (CSCO) was practically unchanged at $107.06. Ciena's fiscal Q3 2026 adjusted EPS was $2.11 against a $1.73 consensus, with revenue up 37% year over year to $1.67 billion, and it raised fiscal 2026 revenue guidance to $6.42 billion. Its backlog reached $8.5 billion, but supply remains the limit, and management does not expect the market to return to balance before 2028. Two customers made up 41.7% of Q3 revenue, so Ciena's growth is concentrated. The next test is whether Ciena can hit its fiscal Q4 2026 revenue guidance of $1.75 billion under tight component supply.
- Gartner Predicts “80% of Neoclouds” Out of Business by 2030: Here’s Who Wins
Gartner forecast on October 14 that more than 80% of neoclouds will stop operating independently by 2030, and CoreWeave (CRWV) fell 25% last week. The article argues that hyperscalers funding AI capacity from their own cash flow, led by Amazon and Alphabet, are likely winners as credit tightens for indebted neoclouds. Amazon generated $140 billion of operating cash flow in fiscal 2025, more than covering $132 billion of capex, while CoreWeave's total debt reached $29.8 billion. Since their July 29 closing low, Microsoft, Alphabet and Amazon are up 15.6%, compared with 1.6% for IREN, CoreWeave and Nebius. Hyperscaler earnings in the coming weeks will need to show whether sold-out capacity is turning into results.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.