CoreWeave Stock Sinks. the Credit Market is Flashing a Warning Sign.
Dow Jones10-14 22:18
CoreWeave stock dropped sharply on Wednesday. A selloff in the company's bonds signaled growing concerns among credit investors about the artificial-intelligence infrastructure provider's mounting debt burden and future borrowing costs.
Shares of CoreWeave fell 13% to $67.52, which would be their lowest close since hitting $60.82 on July 29, according to Dow Jones Market Data. The stock is down 3% this year, but shares have traded down 20% in October so far.
The company's 9.625% notes due in 2032 traded at $79.50 on Wednesday, down from $85 at the start of the month, according to the TRACE bond pricing information service. The bond's yield has climbed to 15.06% from 13.42% over that period.
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