CoreWeave reported first-quarter revenue that exceeded analysts' expectations, driven by robust demand for its data center services.
However, the stock declined in after-hours trading, reflecting investor skepticism about the company's reliance on debt to fund its expansion.
The company's revenue more than doubled compared to the same period last year, according to a report by CNBC.
This growth is attributed to CoreWeave's role in supporting leading artificial intelligence firms, which have increased their infrastructure needs.
Despite the revenue beat, the stock's after-hours drop suggests market concerns about the sustainability of its financial strategy.
CoreWeave has been raising billions of dollars in debt to finance its data center buildout, a move that has raised eyebrows among investors.