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CoreWeave Shares Fall Despite Strong AI Demand as Losses Mount

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Shares of CoreWeave, the Nvidia-backed AI infrastructure firm, dropped 11% after the company reported a larger-than-expected loss for Q2. Operating expenses surged nearly fourfold to $1.19 billion, highlighting tension between rapid revenue growth and rising financial strain.

Analysts expressed concern over CoreWeave’s heavy reliance on key customers, such as OpenAI, and questioned its ability to grow profitably given widening losses, high capital needs, and deteriorating debt coverage. The company, which went public in March, had about $8 billion in debt last year and planned to use roughly $1 billion of IPO proceeds for debt repayment.

With the IPO lock-up period expiring soon, analysts expect volatility as insiders can sell shares for the first time. CoreWeave operates 33 AI data centers in the U.S. and Europe, providing access to Nvidia GPUs. Despite losses, surging demand helped the firm beat quarterly revenue estimates, and its stock has nearly tripled since its IPO.

Apple Losing Over $1 Billion Annually on Streaming Service, Report Says

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Apple (AAPL.O) is reportedly losing more than $1 billion annually on its streaming service, Apple TV+, according to a report by The Information on Thursday. The tech giant has invested over $5 billion per year on content since launching the service in 2019 but has cut its content spending by approximately $500 million in the past year.

Apple TV+, known for original shows like “Ted Lasso,” “The Morning Show,” and “Severance,” has struggled to keep up with competitors such as Netflix (NFLX.O), Disney+ (DIS.N), and Amazon Prime Video (AMZN.O) in terms of subscriber count. While Netflix leads the pack with 301.63 million subscribers, Apple TV+ is estimated to have reached 40.4 million subscribers by the end of 2024, according to Visible Alpha analysts.

Despite its struggles, Apple TV+ has been recognized for its quality productions, earning over 2,500 nominations and 538 awards, as highlighted by CEO Tim Cook in a January earnings call. The company has also bundled Apple TV+ with services like iCloud and Apple Music through its Apple One program, and it is available as part of a bundle with Comcast’s Peacock and Netflix at a discounted price of $15 per month.