CoreWeave shares fall 15.5% on $35.6 bn debt concerns

CoreWeave shares plunged 15.5% to $65.78 on Wednesday as investors weighed its $35.6 billion debt load, The Economic Times said in an Oct. 15 news article.

The decline put pressure on a stock that debuted at $39 in March 2025 and shifted attention from AI demand to financing risk, the article said.

CoreWeave, based in New Jersey, builds data centers and loans the operations to technology customers including Meta and Microsoft, according to the article. The company has used debt to finance purchases of Nvidia semiconductor chips, it said.

CoreWeave had $35.6 billion in debt at the end of June, according to US securities filings cited by the article. Yields on CoreWeave bonds due for repayment in 2031 and 2032 surged to near 15% on Wednesday, the article said.

Bond yields, the annual return investors demand to hold debt, can raise refinancing costs when they climb. The article said the bond move reflected heightened concern about CoreWeave’s prospects.

Gil Luria, an analyst at DA Davidson, said on the Prof G Markets podcast on Wednesday that the company would be exposed if AI financing weakened.

“If the AI cycle sputters...CoreWeave is gonna be the first to go,” Luria said.

Luria also criticized CoreWeave’s funding model on the podcast.

“It's a poster child for bad behavior, for borrowing at very high rates to build a speculative asset,” Luria said.

CoreWeave Chief Executive Mike Intrator told employees that the market was behaving “irrationally,” according to a memo cited by Bloomberg and referenced in The Economic Times article. The memo reiterated confidence in the company’s business model, according to that account.

CoreWeave rose quickly after its March 2025 Wall Street debut before falling later that year, the article said. The source material did not provide CoreWeave’s revenue, cash flow or debt maturity schedule.

Source: news article, The Economic Times, Oct. 15.