- CoreWeave's stock is down 29% this month and is valued at roughly $34 billion, down from a peak market cap of about $90 billion.
- The spread on CoreWeave's five-year credit default swaps is up 164% over the past year and 30% in October, to about 1,067 basis points.
- Sources on credit desks told CNBC that the high-yield debt market is effectively on hold until after the midterm elections, and fixed income investors want permitting and regulatory requirements substantially resolved before committing financing.
- CoreWeave has about $20.7 billion in debt coming due through 2030 and another $14.9 billion thereafter, against $5.5 billion of cash and equivalents at the end of Q2.
- Analysts expect negative free cash flow to swell to $10.1 billion in Q3, the highest since the company started reporting quarterly financials.
- Neocloud peers are also under pressure, with Nebius down 27% and IREN down 32% this month.
Quotes
“Sentiment is decidedly negative”
“Given recent turbulence, pausing makes sense”
“Our financing model combines infrastructure-backed borrowing, corporate debt, equity, and customer prepayments”