CoreWeave reported significant growth in Q2, with revenues tripling to approximately $1.2 billion year-over-year. Despite this impressive revenue figure, the company posted a net loss of $290 million due to rising operational costs and diminishing operating margins, which fell to 2% from 20% a year prior. As demand for AI infrastructure accelerates, CoreWeave's backlog stands at around $30 billion. However, investor sentiment was negative, leading to a 10% drop in share prices after hours, primarily driven by concerns over high expenses and thin margins. Market analysts expressed concerns that the company's current edge, derived from securing NVIDIA's latest GPUs, may be waning as competitors catch up. Additionally, there are worries about the sustainability of profit margins in the capital-intensive AI sector. CoreWeave's adjusted net loss even increased to $131 million, despite reporting an adjusted operating income of $200 million. Observers highlight the financial fragility reflected in the company's accounting practices, suggesting that it might be masking larger losses due to depreciation assumptions on their hardware.

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