CoreWeave plunges 20% after Q2 results, sparking debate on compute capacity vs capability.

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CoreWeave falls 20% a day after reporting market-beating revenue for its second quarter and offering upbeat guidance for the future. IMO it’s a sign that just raw compute (capacity) vendors won’t have huge margins in the long run and market is getting educated on that fact. Mainly its ‘capacity’ vs ‘capability’ discussion. Or is it? Shashi Bellamkonda David Vellante John Furrier Crawford Del Prete David Floyer

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The marketing dynamics at this time are a bit strange in my opinion and we are paying more attention to profit over growth which in my opinion is the right way to look at business as I am not a VC. Or maybe its people taking their profits where they can. I believe you are right about it being about ‘capacity’ vs ‘capability’.

Today the dip on stock is also due to post-IPO lock-up expiration.

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The biz model is fraught and somewhat artificial…no surprise to me!

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