CoreWeave Dropped 20% Last Week. Is It Time to Panic or Buy?
It was nothing short of a brutal week for CoreWeave (NASDAQ: CRWV). The AI cloud computing company’s stock was crushed, falling more than 20% as of Oct. 16. The cause of the precipitous fall is mainly twofold: debt and spending worries. Is it time for CoreWeave’s shareholders to panic, or is this an opportunity?
First, investor concerns regarding CoreWeave’s debt load are real. The company has approximately $35 billion in total debt, compared to just $5.5 billion in cash. Net interest payments are racking up and hit $640 million in just the second quarter. The yields on CoreWeave’s unsecured bonds are approaching 15%. S&P rates the company a B+, which is essentially junk bond territory.
The company’s extraordinarily high capital expenditures this year are also cause for concern. CoreWeave spent just over $16 billion in the first half of 2026 and expects to spend up to $39 billion total this year. That’s triple its revenue guidance of $12.4 billion to $13.2 billion.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.