One sentence helped lift CoreWeave (CRWV) stock 15.6% to $56.33 in premarket trading Wednesday. CEO Michael Intrator told investors the AI cloud company would stop borrowing where lenders charge it most.
Lenders had been charging plenty. CoreWeave’s 2032 bonds yielded above 16% on November 6, more than three times the 10-year Treasury yield. The shares had lost 47.5% in a month.
What Did CoreWeave’s CEO Actually Promise?
The line came midway through Tuesday’s earnings call.
“Looking ahead, we will not use the unsecured debt market to fund our business at current yields. Nor do we need to,” Intrator said on the call.
Unsecured debt is money borrowed on a promise…
