CoreWeave (CRWV) closed at $55.60, down 10.06%, on trading volume of 79.7 million shares, about 122% above its three-month average, and hit a new 52-week low. Bernstein cut its price target to $51 from $74 and kept an “Underperform” rating, citing financing concerns and an estimated $85 billion needed to fund its committed backlog. Peers also fell, with Nebius Group down 7.23% and Iren down 8.37%, as investors focused on higher interest rates and financing pressure for neocloud companies that borrowed heavily. Nvidia CEO Jensen Huang said demand for neoclouds is very strong, while Blackstone COO Jon Gray praised CoreWeave's management and said the underlying business is quite strong. The S&P 500 fell 1.22% to 7,663 and the Nasdaq Composite dropped 2.60% to 26,009.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on fool.com ↗
Keywords
CoreWeavecloud computingdata centersNasdaq
Open a keyword to see other news on the same topic.
Related news
- 2 Nasdaq-100 Stocks to Buy Before They Soar 105% and 130%, According to Wall Street
Analysts' median target prices imply triple-digit upside for two Nasdaq-100 stocks: CoreWeave (126% from $62, target $142.50) and Rocket Lab (105% from $51, target $105). CoreWeave's Q2 revenue rose 112% to $2.5 billion and its shares jumped 14% after results, but its non-GAAP net loss widened to $567 million as financing costs grew. The author considers its 4.3 times sales valuation relatively cheap given projected 101% annual revenue growth through 2028, while noting that shares remain 66% below their record high. Rocket Lab's Q2 revenue grew 62% to $234 million and its backlog hit a record $2.3 billion, but its 39 times sales valuation is expensive, and intense competition from SpaceX makes it somewhat risky.
- Gartner analyst behind tech rout: AI returns are not yet large enough to justify neocloud build-out
Gartner stands by its forecast that $3.5 trillion in AI investment could be at risk because top AI models may not generate enough profit. Chief forecaster John Lovelock told CNBC that returns do not yet match the scale of spending, and that neoclouds may face takeovers and mergers rather than mass shutdowns, after Gartner predicted 80% of them could stop operating as independent companies. Neoclouds were hit hard last week and helped drag the broader market lower, with CoreWeave down 25%, Nebius down 25% and IREN down 16%, while the S&P 500 fell 2% and the Nasdaq Composite fell 4% for the week ending Oct. 16. Anthropic's revenue growth reportedly slowed from 140% in the second quarter to 45% in the third, and its $16.8 billion quarterly revenue looks small against the more than $5 trillion hyperscalers are expected to spend through 2030.
- CoreWeave Has a $100 Billion AI Opportunity, but Investors Face One Big Question
CoreWeave shares fell 23.56% over the past month to $62.19, near their 52-week low, even though its revenue backlog reached $104.2 billion at the end of Q2. Q2 revenue rose 112.3% to $2.575 billion, above the $2.555 billion consensus, and operating cash flow turned positive at $679 million. Bulls point to more than 50% of the backlog already in customer delivery and adjusted operating margins expected in the low teens in Q4. Risks include Q2 free cash flow of -$5.743 billion, 2026 capex guidance of $35 billion to $39 billion, reliance on a few customers such as a $21 billion commitment from Meta, and a securities class action alleging data center delays were concealed. The article's author sets a $85.06 price target with a buy rating and moderate confidence, while a bear case of $41.84 applies if the stock trades at 1.5x 2026 sales.
- What Is a Neocloud? The GPU Clouds Powering the AI Boom
Neoclouds are specialist cloud providers, such as CoreWeave and Nebius, that rent clusters of Nvidia GPUs to AI labs, startups and Big Tech firms. Many have crypto roots: CoreWeave began as an Ethereum miner, and Bitcoin miners have signed AI hosting deals worth billions with Microsoft, Amazon and Anthropic. The model depends on chips, power and capital, and its weak point is depreciation: in the second quarter of 2026, CoreWeave reported nearly $1.4 billion of depreciation and amortization against about $2.6 billion of revenue. Neocloud shares sold off in October 2026 after Gartner predicted that more than 80% of providers will stop operating independently by 2030.
- Down Almost 25% in a Week, Is CoreWeave Stock a Buy Now?
CoreWeave (CRWV) shares plunged nearly 25% in a week as investors grew concerned about the financial risks behind the AI infrastructure boom. The article highlights strong growth, with second-quarter 2026 revenue reaching $2.6 billion, up 112% year over year, and a revenue backlog of roughly $104 billion. However, it points to debt of about $50 billion, bond yields on some notes surging to around 15%-16%, and competition from Amazon, Microsoft, Alphabet and Nebius as key risks. The author says valuation and the company's ability to deliver infrastructure on schedule are the main things to watch, and would keep the stock on a watch list rather than buy the dip now.
- AI Cloud Stocks Rise as Musk Calls Overcapacity Talk 'Ridiculous': Nebius and CoreWeave Gain 3%, Oracle Edges Higher
AI cloud stocks rebounded from last week's selloff, with Nebius up 3% to $176.60, CoreWeave up 3% to $63.77 and Oracle up 1%. On SpaceX's Q3 2026 earnings call, Elon Musk called overcapacity talk 'ridiculous' and said hyperscalers keep asking to rent more compute, reversing the tone of his 'Yikes' post on X the week before, which followed rising yields on CoreWeave's bonds. Nebius said it could sell all of next year's planned capacity at current prices and has $37.5 billion in remaining performance obligations, though it faces customer concentration and heavy infrastructure spending. The article suggests financing, especially CoreWeave's reliance on debt, will decide the next move, and that these shares remain volatile.
Related markets
Latest news
- AMD or Broadcom: If I Could Only Own 1 AI Chip Stock Through 2030, Here's My Pick
AMD and Broadcom have both benefited from the AI boom, with AMD shares up 421% and Broadcom up 285% over three years. In Q2, AMD's revenue rose 50% year over year to $11.5 billion, its data center segment reached $6.7 billion (up 107%), and non-GAAP EPS hit $1.66 (up 246%), with AMD projecting a $220 billion CPU opportunity and a $1.4 trillion AI accelerator opportunity by 2030. Broadcom's fiscal Q3 2026 revenue grew 86% to $29.6 billion, with AI semiconductor revenue up 221% to $16.7 billion, and it projects $115 billion in AI revenue for fiscal 2027 and $230 billion for fiscal 2028. The author gives a slight edge to Broadcom on valuation, at 19.4x forward earnings versus 39.5x for AMD, though AMD's EPS is growing faster. Broadcom's margins could decline as lower-margin AI chip sales take a larger share of its total revenue.
- AI's 'Black October': Critical PHP flaws set off global security scramble
Cybersecurity teams worldwide are rushing to patch critical flaws in PHP, a language some estimates say is used by nearly 70% of websites. Researchers at Google's Wiz and AI firm Calif found the major vulnerabilities in August using advanced AI models from OpenAI and Google, and as warnings spread, governments and businesses scrambled to respond. Figma's John Milinovich said several dozen cyberattacks in just two days would each have been the worst of an entire year, while Anthropic's Jason Clinton warned the landscape will likely get “a lot worse” and that the sector must hold on for about 18 months. Former director of the U.S. Cybersecurity and Infrastructure Security Agency Chris Krebs said smaller businesses may struggle to fix serious bugs, and noted that 3% of all critical vulnerabilities ever discovered were found in the past month.
- Why OpenAI could be in trouble if Anthropic's IPO doesn't go well
Manhattan Venture Partners managing partner Jared Carmel says OpenAI's decision to stay private this year may be a strategic misstep, since if Anthropic's upcoming IPO in November does not go well, OpenAI could find it much harder to raise money, especially at its current valuation. He questions whether Anthropic will get the same benefit of the doubt Amazon received in its early years despite years of losses. He points to a shift in token spending, with about 80% of dollars once going to foundational models now moving to open-weight models over the past few weeks. He says this is a longer-term issue to watch over the next 24 months rather than something to resolve today.
- How Apple dethroned Nvidia to become world's most valuable company
Apple has overtaken Nvidia as the world's most valuable company, as Nvidia's stock has fallen about 7.5% over the past month while Apple's has risen about 3%. The commentator attributes the shift to a cooling AI trade, Apple being viewed as a hardware player rather than an AI play, and strong holiday demand for its foldable “Duo” phone priced at over $2,000. Although reviews of the device are described as poor, buyers are still lining up, which could boost Apple's sales and profits as more stock arrives.
- Do Minh Quang detained for spreading false information about Novaland
On October 23, HCMC police announced they had initiated a case and issued an arrest warrant for Đỗ Minh Quang (born 1982) on charges of abusing democratic freedoms to infringe on the interests of the State and the lawful rights of organizations and individuals. Following a complaint from Novaland, investigators found that the Facebook account “Quang Do” was created and used by him to post multiple false claims about the company, including that it faced bankruptcy risks. Quang admitted posting the content to attract views, likes, shares and followers. Police are continuing to verify other accounts that may have spread similar misinformation, and urge the public to check information before posting or sharing it on social media.
- Polen Focus Growth Strategy Boosts Meta Platforms, Inc. (META) on AI Monetization Potential
The Polen Focus Growth Strategy portfolio returned 4.46% net of fees in Q3 2026, outperforming the Russell 1000 Growth Index's 0.92% gain, though its year-to-date net return remained at -8.11% versus the benchmark's 6.30% gain. Software and services holdings helped results, while semiconductor and direct AI capital expenditure beneficiaries faced valuation pressure as investors reconsidered spending, financing and infrastructure returns. The managers rebalanced toward companies with attractive long-term growth, stronger momentum and more visible demand, adding selected semiconductor equipment, power infrastructure, payments and data-storage firms while trimming or exiting other holdings. In its Q3 letter, the fund highlighted Meta Platforms (META) amid AI monetization potential, even though the stock fell 13.89% over one month and closed at about $648.85 on October 21, 2026, with a market capitalization of about $1.65 trillion.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.