CoreWeave's stock price increased by over 2% in pre-market trading following the extension of its deal with Meta Platforms, now valued at $21 billion. The agreement, which will provide cloud services to Meta through December 2032, marks a significant increase from the $14 billion deal announced earlier this year. CoreWeave, known for its rapid growth, reported a revenue backlog of $66.8 billion, a 342% increase from the previous year.
The company's recent financial results highlight its strong performance, with quarterly revenue reaching $5.1 billion last year, up 168% year-over-year. Despite the positive outlook, CoreWeave faces challenges due to rising capital expenditures, expected to reach up to $35 billion. The company plans to raise additional capital through a $3 billion convertible notes offering and a $1.26 billion offering, following a $2 billion raise from NVIDIA. These moves may lead to stock dilution, impacting existing investors.
CoreWeave Extends $21 Billion Deal with Meta, Stock Rises
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