TradingKey – CoreWeave (NASDAQ: CRWV) closed October 14 at $65.78, -15.46% to the downside, after reaching an intraday low of $64.41. Stress in the bond market is causing concern regarding CoreWeave’s ability to fund its infrastructure buildout.
My near-term outlook remains bearish despite the very strong customer demand. CoreWeave is contracting to provide cloud compute services. The key test is whether the contracted compute services can convert to cash quick enough to service debt, pay leases, and purchase new compute hardware.
Bond Yields Near 15% Put Financing in Focus
CoreWeave’s longer-dated unsecured bonds yielded around 15% by October 14, way above their original coupons. Reuters reported on October 15 that…
