CoreWeave Shares and Bonds Head for Steep Weekly Losses: Stock Down More Than 15% This Week, 2031 Bond Yield Briefly Above 16%
New York — Shares and bonds of artificial-intelligence cloud company CoreWeave were headed for steep weekly losses on Friday, as investors grew uneasy about the debt financing behind the SI build-out in the face of rising borrowing costs, Reuters reported on October 16.
The stock dipped 4.1% in premarket trading on Friday, after jumping 5.9% in the previous session. As of the last close, the shares were down more than 15% this week, on course for their biggest weekly decline in about two months, and were on track to erase about a fifth of their value this month. Shares of rival Nebius Group fell 1.5% on Friday morning, also set for their steepest weekly fall in two months.
CoreWeave is a loss-making cloud company with about $50 billion in debt. The yield on its October 2031 dollar bond briefly surged past 16% on Thursday, and the bond was set to decline for a fifth straight week, down about 3 cents on the dollar this week. The cost of insuring against the company's debt surged past 1,000 basis points to record highs this week, according to S&P Global Market Intelligence data.
Analysts at BCA Research said a hot inflation print triggered a sharp selloff in CoreWeave because its business model is a highly indebted bet on future data center demand, while noting that the broader tech complex is on average considerably less sensitive to interest rates. SI infrastructure stocks fell this week as hot inflation raised borrowing-cost worries, Reuters reported earlier.
Published by GSM · USA (original Chinese edition)
Photo: 图：数据中心机房内的服务器机柜（资料图）。图片来源：Gideonwills44，Wikimedia Commons，CC BY-SA 4.0。Photo: Server racks inside a data center (file photo). Image: Gideonwills44, via Wikimedia Commons, CC BY-SA 4.0.
