TradingKey – On October 14, US Eastern Time, CoreWeave (CRWV) saw its stock price plummet over 15%, hitting a new low since late July.

D.A. Davidson analyst Gil Luria said on the Prof G Markets podcast that once the AI investment boom cools down, high borrowing costs could prevent the AI cloud service provider from meeting its debt obligations, potentially causing shareholders to suffer a total loss.

Luria remains bullish on AI demand, but questioned CoreWeave’s return on investment. He stated that the company’s borrowing cost is around 9%, while its estimated return on investment is only about 1%; even if it reaches the company’s target of 4% to 5% as he noted, it would still fall short of its financing costs. He compared it to borrowing…