CoreWeave (CRWV) shares fell 24% over the past week to their lowest level since shortly after its IPO, after venture capitalist Chamath Palihapitiya posted a chart showing its debt yields had risen as high as 15%. The neocloud operator borrows to buy GPUs and rents out their computing power, a model that drove second-quarter revenue up 112% to $2.58 billion. However, it posted a $626 million net loss, largely due to $640 million in interest expense, and negative free cash flow of $10.5 billion in the first half of the year. Fed Chair Kevin Warsh, who took over in May, aims to bring inflation back to the 2% target, including through rate hikes that have pushed Treasury yields higher. Since most of CoreWeave's debt is floating-rate and it has $10.6 billion due by the end of next year, rising rates pose a refinancing test, and its November 11 earnings report is seen as pivotal.
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Original headline: Is Fed Chair Kevin Warsh About To Pop CoreWeave Bubble ?
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NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/19/2026 | 217.09 |
| Change that session | +1.38% |
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CoreWeave (CRWV) shares have fallen 24% over the past week to their lowest level since shortly after their IPO last March, after Chamath Palihapitiya posted a chart showing yields on the company's debt rising as high as 15%. In its second quarter, revenue rose 112% to $2.58 billion, but the company posted a GAAP net loss of $626 million, driven by $640 million in interest expense, and negative free cash flow of $10.5 billion over the first half. Fed Chair Kevin Warsh has vowed to bring inflation back to target, including by raising rates, which hurts CoreWeave because most of its debt is floating-rate and it spends roughly a quarter of revenue on debt service. The company holds a $104 billion revenue backlog, but $10.6 billion of debt comes due by the end of next year, and refinancing it will be a key test. Its Nov. 11 earnings report could be pivotal.
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