Key Stats for CoreWeaveStock
- Price change for CoreWeave stock in last 6 months: -45%
- $CRWV Stock Price as of Oct. 14: $66
- 52-Week High: $150
- $CRWV Stock Price Target: $141
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What Happened?
CoreWeave (CRWV) shares dropped 15.5% on Wednesday as investors are worried that some tech companies are borrowing too much to build out AI.
The company’s bonds fell too. When bond prices fall, yields rise. The yield on its 2032 bond is now 14.8%, and its 2031 bond is near 14.9%.
Tech investor Chamath Palihapitiya pointed to the rising yields on X, and Elon Musk replied with one word: “yikes.”
CEO Mike Intrator told staff in a memo that the market sometimes “acts irrationally” and emphasized CoreWeave’s backlog more than covers all of its debt.
The backlog was $104.2 billion at the end of Q2, while the company more than doubled sales to $2.6 billion.
However, its interest expense rose to $640 million in Q2, up from $267 million a year earlier.
The company also posted a net loss of $626 million an expects Q3 interest expense of $860 million to $940 million.
S&P rates CoreWeave B+, which is in the junk territory.
S&P’s Gavan Nolan says the company spends like a hyperscaler but doesn’t have a hyperscaler balance sheet.
Paul Meeks of Freedom Capital Markets calls the balance sheet “relatively bad” next to its peers because CoreWeave borrows and builds more.
Still, he doesn’t share the fear that it can’t pay its interest.
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What the Market Is Telling Us About CoreWeave Stock
This sell-off goes beyond one company. Oracle fell nearly 9%, Nebius dropped 10%, and Dell lost about 11%. The Nasdaq Composite closed down 1.9% yesterday.
Luis Alvarado of Wells Fargo Investment Institute says easy money is fading and investors now want more pay for taking on risk.
The borrowing numbers are big. Alphabet, Amazon, Meta and Oracle have issued more than $228 billion in bonds this year, more than double all of 2025.
For CoreWeave stock, the next test comes in November. Meeks expects flat margins from June to September, then a pretty significant improvement into December.
Management has said margins should keep rising in Q3 and Q4.
Until then, CoreWeave stock will likely stay tied to how the credit market feels about AI debt. Investors will watch bond yields as closely as the share price.
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So what is CoreWeave stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
