Mark Zuckerberg's Meta Is Also One of CoreWeave's Biggest Customers, in a Deal Worth $35 Billion Through 2032. That Didn't Stop CoreWeave Shares From Sinking on Meta's Own Cloud News.
A report stating that Meta Platforms intends to sell its excess cloud computing capacity doesn't bode well for CoreWeave.
Overview
Shares of CoreWeave (NASDAQ: CRWV) have been in free-fall mode lately, losing 35% of their value over the past three months, as investors have been concerned about the neocloud infrastructure provider's aggressive spending to build dedicated artificial intelligence (AI) infrastructure.
CoreWeave stock received another jolt earlier this month after reports emerged that Meta Platforms (NASDAQ: META), one of its key customers, plans to sell its excess AI data center capacity. It was easy to see why that was the case, but I think that investors are underestimating the AI infrastructure specialist's long-term prospects.
Details
Here's why.
Source
Originally published at www.fool.com.