Key Stats for CoreWeave Stock
- Price change for CoreWeave stock in last 6 months: -52%
- $CRWV Stock Price as of Oct. 23: $54
- 52-Week High: $142
- $CRWV Stock Price Target: $136
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Shares of major neocloud companies fell on Monday after Elon Musk said more than 200 companies in the sector could collapse.
Nebius, CoreWeave (CRWV) and Iren all dropped more than 4% in early premarket trading. They have since pared some of those losses.
Musk posted on X on Sunday that debt markets have almost entirely shut off access to money for companies without substantial revenue outside AI data centers.
He said the 200+ neoclouds will see “guppy-level death and consolidation.” Some will make it through, but not many.
There is a conflict of interest to note. Musk’s SpaceX runs its own data centers and sells computing capacity, which makes it a direct competitor to the neoclouds.
Musk was replying to Chamath Palihapitiya, who expects more stranded compute in 2027 than people forecast.
He called 2027 a year that will clear out bad bets.
The sell-off started earlier this month.
CoreWeave’s credit default swap spreads hit levels often seen as a sign of distress, and its bond yields also rose.
CoreWeave and Nebius are down more than 30% over the past month, while Iren is down 40%.
See analysts’ growth forecasts and price targets for CoreWeave stock (It’s free) >>>
What the Market Is Telling Us About CoreWeave Stock
Investors are nervous about companies that borrow heavily to buy Nvidia chips and build data centers.
CoreWeave stock is at the center of that worry because of its debt load, and the latest quarter showed both sides of the story.
On the strong side, Q2 revenue hit $2.6 billion, up 112%, while backlog reached $104.2 billion. Management said near-term capacity is effectively sold out and also said pricing is setting new highs.
Alternatively, the company posted a net loss of $626 million, and interest expense was $640 million, more than double a year earlier.
Management expects Q3 interest expense of $860 million to $940 million.
The sector is pushing back on the doom talk, and Nvidia CEO Jensen Huang said neocloud demand is “off the charts.”
Iren’s co-CEO said customer demand hasn’t changed.
A Nebius executive said his company doesn’t carry the kind of debt CoreWeave does.
For CoreWeave stock, the question is simple.
Can demand and rising margins outrun the cost of its debt? Anyone watching CoreWeave stock should track credit spreads and bond yields in the coming weeks.
Management says it has cut its average cost of debt by almost 300 basis points over the past year.
Estimate a company’s fair value instantly (Free with TIKR) >>>
So what is CoreWeave stock actually worth?
TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR’s valuation model and see what CRWV stock could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It’s free to use.
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!
