CoreWeave’s market confidence erodes as bond yields spike and stock sinks — SkimNews
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- CoreWeave stock is down 29% this month, unsecured debt yields roughly 15%, and its five-year CDS spread stands at 1,067 basis points—up 164% in the past year and 30% in October, per CNBC; the company's market cap has fallen from a ~$90 billion peak to ~$34 billion.
- Other neoclouds are under simultaneous pressure: Nebius is down 27% this month, IREN down 32%, Australia's NextDC plunged 40% after slashing its annual earnings forecast, and Firmus scrapped its planned IPO citing market volatility.
- Microsoft accounted for more than two-thirds of CoreWeave's revenue last year, while Nvidia holds a ~9% stake purchased in January at $87.20 a share—well above the current $61.82 price even after a 6% bounce.
- CEO Mike Intrator sent a Thursday employee memo stressing "additional flexibility to raise equity over time," as CoreWeave faces $20.7 billion in debt due through 2030, $5.5 billion in cash at Q2's end, and an expected $10.1 billion negative free cash flow next quarter.
- Credit-desk sources told CNBC the high-yield debt market is "effectively on hold until after the midterm elections," with fixed-income investors wanting "permitting and regulatory requirements to be substantially resolved" before committing financing.
Why it matters: CoreWeave sits at $20.7 billion of debt maturing through 2030 while the high-yield market has gone dark until after the midterms, making next month's Q3 report the first real test of whether equity issuance, customer prepayments, or a deeper Nvidia backstop close the gap. Baird's $30 billion 2027 capital estimate quantifies why Huang's "no backstop needed" line is now being treated as conditional, not final.
Ask SkimNews
