CoreWeave (CRWV) shares fell below $60 last week, hitting a new 52-week low of $59.51, and were down 26% over the past month. The article links the selloff to concerns that the war in Iran will not end soon, that inflation may stay elevated and push interest rates higher. The company carries a heavy debt load and is unprofitable; at its last August earnings report it posted a net loss of $626 million, largely due to $640 million in interest costs. The author says the stock remains risky even at its lower valuation, since its outlook depends heavily on AI demand and interest rates.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
CoreWeaveinflationinterest ratesartificial intelligence
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/16/2026 | 214.13 |
| Change that session | -1.43% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- What Wrong With CoreWeave Stock ? | The Motley Fool
CoreWeave (CRWV) shares closely track sentiment around AI stocks, since the company rents out compute capacity and gives customers access to Nvidia's AI chips. Last week the stock fell below $60, hitting a 52-week low of $59.51, and was down 26% over the past month. Concerns that the war in Iran may not end soon and that inflation could keep interest rates high have weighed on the stock. With high debt and no profitability, the company reported a net loss of $626 million in its last earnings report in August, largely due to $640 million in interest costs. The author argues that the lower valuation does not offset the risks, which depend heavily on AI demand and interest rates.
- MarketBeat Week in Review – 10/12 - 10/16
Technology stocks fell this week while the Dow rose, as hotter-than-expected inflation data pushed investors toward dividend-paying value stocks amid expectations of higher interest rates. A Gartner report warned that 80% of neocloud companies could shut down or merge by 2030 due to a mismatch between AI infrastructure spending and achievable revenue, intensifying fears about the AI trade. Big tech earnings, expected in a couple of weeks, will be pivotal in confirming or contradicting this pullback. The review also covers ASML, Johnson & Johnson, Tesla, Amazon (committed $220 billion to AI), Royal Caribbean ($3 billion stake in the company behind Sandals resorts), and Broadcom ($60 billion in financing tied to Anthropic). It also highlights sectors and stocks to watch ahead of the holiday shopping season.
- AI Boom Inflation : Fed Faces a Rate Hike Dilemma
The article says the AI boom is now widely recognized at the Federal Reserve as a driver of inflation, creating a dilemma for policymakers. Cooling the broader economy would be needed to ease price pressures, but part of the pressure comes from an industry led by Amazon, Apple and Anthropic, which is seen as largely immune to rate hikes. Fed officials view interest rates as a blunt tool with uneven effects, while AI firms keep spending freely. Economists expect the burden of higher rates to fall on credit-dependent firms and families, and on small and medium-sized businesses that will pull back on investment.
- Breitbart Business Digest: Inflation Takes Flight, and AI Debt Hits Turbulence
The weekly wrap says US consumer prices rose 0.6% in the month, or 8.1% annualized and 3.7% over the past year, while producer prices rose 1.3% for the month and 6.3% over 12 months; import prices rose 1.1%. Fed official Kevin Warsh spoke at an IMF meeting in Bangkok without giving guidance on monetary policy, but markets still read his remarks as confirming expectations. Before his speech, fed funds futures priced around a 72% chance of a hold this month and a 90% chance of a hike in December; afterward, the odds of a hold in October rose above 85%. The article also says bond markets grew worried about the sustainability of AI-related debt in a higher-rate environment, and argues an unexpected October hike is more likely than many think.
- Neoclouds : Goldman Sachs Upgrades CoreWeave . Microsoft Shelves Nscale Project .
- Credit stress is threatening to unwind the AI bull. All eyes are on Oracle to hold the line
Oracle's bonds are sitting close to junk territory as markets cool on AI after CoreWeave's slump, and a credit downgrade could have cascading effects across AI financing. Its five-year credit default swap spread stood at 295 basis points, up 287% in one year, a level more in line with high-yield credits, while S&P rates Oracle BBB-, the lowest investment-grade level. The company has issued $118 billion in long-term debt to fund its buildout, and analysts estimate free cash flow of -$23.7 billion this year and -$36 billion in 2027. Deutsche Bank warns that a junk downgrade could force IG-only investors into sales, though Vanguard's Brad Collins says he would not extrapolate high-yield stress to investment grade.
Related markets
Latest news
- Winning over Vingroup and Sun Group with concrete and special materials: Vietnamese company's profit up 136%, chairman speaks out
Song Da Cao Cuong (SCL) reported Q3/2026 profit of VND 38 billion, up 136%, on net revenue of over VND 263 billion (up nearly 98%), while gross profit margin rose from about 36% to 41%. For the first nine months, revenue reached nearly VND 666 billion (up 81%) and after-tax profit nearly VND 94 billion, already exceeding more than 110% of its full-year profit target. Chairman Kieu Van Mat attributed the results to technology upgrades, production line optimization and capacity expansion, with several new plants expected to start operations by November 2026. The company said it spent more than two years testing its products before Vingroup accepted them; Vingroup's share of its business has fallen to about 25% as customers expanded to around 10 major groups and exports began to Laos, Cambodia and the Philippines. Over the past two years, the company has invested about VND 1,000 billion in factories and technology.
- Coteccons Chairman Bolat Duisenov reveals new direction: expanding home construction for individual customers
At the annual general meeting on October 20, Coteccons (HoSE: CTD) set fiscal 2027 targets of VND 42,000 billion in revenue and VND 1,050 billion in after-tax profit, and said it is considering expanding into residential construction for individual customers (B2C). In fiscal 2026, net revenue reached VND 34,340 billion (up 38%, 115% of plan) and after-tax profit VND 788 billion (up 73%); new contract wins totaled VND 60,307 billion and backlog was about VND 70,000 billion. In the first quarter of the new fiscal year, the company booked revenue of VND 11,270 billion and profit of VND 306 billion, but new contract value of VND 14,519 billion was lower than a year earlier; the company said it is tightening criteria for selecting clients and projects. Coteccons is also working with Microsoft, is expected to become a strategic partner of Workday, and targets raising its ROE from 10% to 15-18% by 2030.
- UPS Yields 6.7% After Firing Amazon. Here's Whether the Dividend Survives 2027.
UPS shares yield 6.7% as of October 16. The company has moved away from high-volume, low-margin Amazon deliveries and froze its dividend earlier this year, ending a 16-year streak of increases. The article says the payout will likely remain frozen through 2026 and 2027, citing competition from 10- and 30-year Treasury yields above 5% and other industrial dividend payers, but calls the dividend's safety questionable: UPS generated $5.47 billion in free cash flow in 2025, with $5.4 billion going to dividends, and free cash flow is projected to fall to $5.05 billion in 2026 and $5.01 billion in 2027, with the dividend absorbing about 98% of 2026 free cash flow. Rising competition and high fuel prices add pressure, and the article suggests investors may find more safety in the industrial sector.
- Asian shares mostly decline after AI stocks lead a rebound on Wall Street
Asian shares mostly fell in cautious trading on Tuesday after AI-related stocks rebounded on Wall Street, while other sectors stayed shaky and oil prices stayed high. Japan's Nikkei 225 slipped 0.6% to 64,512.35 in early trading, South Korea's Kospi dropped 2.8%, and Australia's S&P/ASX 200 lost 0.8%. On Wall Street, the S&P 500 rose 0.4% and the Nasdaq gained 1.1%, helped by Nvidia's 1.4% gain, while most stocks outside AI and tech fell and the Dow slipped 0.1%. The 10-year Treasury yield climbed to 5.14%, and U.S. crude rose to $103.50 a barrel and Brent to $109.47, as uncertainty about when the energy industry will return to normal after the war with Iran means oil is unlikely to ease soon.
- Asian shares mostly decline after AI stocks lead a rebound on Wall Street
Asian shares mostly fell in cautious trading Tuesday after AI-related stocks rebounded on Wall Street, while other sectors stayed shaky and oil prices remained high. Japan's Nikkei 225 slipped 0.6% to 64,512.35, Australia's S&P/ASX 200 lost 0.8% to 8,772.10, and South Korea's Kospi dropped 2.8% to 5,605.31. On Wall Street, the S&P 500 rose 0.4% and the Nasdaq rallied 1.1%, helped by Nvidia, while the Dow fell 0.1%. The 10-year Treasury yield climbed to 5.14%, and U.S. crude rose 0.15% to $103.50 a barrel as uncertainty over the war with Iran kept oil prices elevated.
- What Could X-Energy (XE) Gain From Its 960MW Indiana Nuclear Project?
X-Energy (NasdaqGS:XE), American Electric Power and Amazon agreed to assess a 960 MW advanced nuclear project in Indiana using Xe-100 reactors, on a former coal plant site. Under the joint development agreement, Amazon would provide development funding and commit to a long-term power purchase. The article says the deal offers commercial validation for X-Energy's reactor platform rather than immediate financial relief, as the company, with a $4.3b market cap, reported $150.28 million in revenue, a $448.87 million loss, and a 20.2x price-to-sales ratio. The next key milestone is whether the study reaches a final investment decision for the Sullivan County site.
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.