Engineering Manager - Fleet Engineering

CoreWeave's stock fell after venture capitalist Chamath Palihapitiya shared a chart showing its bonds due in 2032 hit a 15% yield. The bonds, issued in June, carry a 9.625% coupon. Reuters reported that its 9.75% notes due in 2031 topped a 16% yield. Rising yields suggest the market sees a higher risk of default at the neocloud company, which Nvidia backs. Nvidia invested $2 billion each in CoreWeave and Nebius this year, and agreed to buy CoreWeave's unused capacity through 2032. CoreWeave says its $104 billion backlog of contracted revenue covers its debt. Nvidia also plans to finance up to $500 billion in AI build-outs, though banking partners have questioned the residual value of its GPUs. Nvidia trades at 23 times forward earnings.

Yields on some CoreWeave bonds maturing in 2032 have reached 15%, raising the cost of funding its AI data centre build-out and rattling neocloud stocks. The yields have surged throughout the year. The article argues this is a CoreWeave problem, not a sector one. CoreWeave leases its data centres, so it owns neither the land nor the power. Rivals Nebius and Iren own both, which keeps costs low and lets them borrow against their facilities. CoreWeave's second-quarter revenue more than doubled to $2.58 billion, but it holds $5.5 billion in cash against $20.9 billion in current liabilities. It paid $640 million in interest in the quarter and has $10.6 billion in debt due by the end of 2027. Its current ratio is 0.46, against 3.08 for Nebius and 3.55 for Iren.

Why did CRWV, OPEN, SOFI stocks tumble to 52-week lows today? Published: Oct 16 2026, 10:05 AM IST * FB * TW * Linkdin * Whatsapp * GNFollow Us Investors grew cautious about rising borrowing costs, a weak housing market and slowing profit growth. * CoreWeave shares hit a 52-week low of $59.51 on worries about high borrowing costs. * Opendoor faced pressure from weak U.S. home sales and high mortgage rates. * SoFi's slowing profit growth dampened sentiment. CoreWeave Inc. (CRWV), Opendoor Technologies (OPEN) and SoFi Technologies (SOFI) hit fresh 52-week lows on Thursday as rising debt costs, a sluggish housing market and mounting profit pressures rattled investors. Despite Wall Street's defense of CoreWeave's AI demand outlook, concerns over financing costs and earnings growth weighed on the three stocks. CoreWeave, SoFi, and Opendoor all pared their losses and ended the session 5%, 6%, and 16% higher, respectively. Debt concerns shake CoreWeave's AI growth story. CoreWeave stock fell to an annual low of $59.51 as investors grew uneasy about $850 million in unsecured debt, with yields approaching 15%. Higher financing costs raised questions about whether the company's expansion plans could deliver attractive returns. Some analysts, however, argued that the market reaction overlooked the company's commercial abilities. Cantor Fitzgerald maintained an "Overweight' rating and a $176 price target, describing the negative narrative as excessive. The firm pointed to strong demand for CoreWeave's computing capacity in 2027. Jefferies also retained its 'Buy' rating, with a $150 target. The firm said CoreWeave's short-duration contracts, valued at roughly $40 million per megawatt, could help offset more expensive funding. On Stocktwits, retail sentiment around the stock remained 'bullish'. Housing slump adds pressure on Opendoor. Opendoor stock slumped to a new yearly low of $1.9 as fewer homes sold in the U.S. Pending home sales fell to their lowest level in 12 years, while 30-year mortgage rates climbed to 7.40% for the week ending Oct. 8, making home loans more expensive for buyers. With fewer homes selling, Opendoor faces greater challenges buying and reselling properties. The company must cover the costs of holding homes for longer while earning less profit from the difference between buying and selling prices. Retail sentiment around the stock remained 'bearish'. SoFi faces questions about earnings quality. SoFi stock fell to a 52-week low of $13.86, reflecting concerns that rising revenue was not translating into earnings growth at the same pace. The company reported second-quarter revenue of $1.22 billion and raised its full-year revenue outlook to $4.75 billion - $4.85 billion. However, its adjusted earnings-per-share outlook remained around $0.60 as increased marketing investment and customer acquisition costs weighed on profit. Last week, Keefe Bruyette lowered its price target for SoFi to $15 from $16 and maintained an 'Underperform' rating. The firm expects rising interest rates and SoFi's growing balance sheet to create more than $1 billion in pressure this quarter, forcing the company to issue more loans while reducing its available capital. Retail sentiment around the stock turned 'neutral' from 'bullish'. So far this year, CRWV, OPEN and SOFI stocks have declined between 2% and 60%. For updates and corrections, email newsroom[at]stocktwits[dot]com.< Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business. 0 Comments / 0 New