CoreWeave Inc (NASDAQ:CRWV) shares are sliding Thursday to a fresh 52-week low. Climbing interest rates and unease over AI spending are weighing on stocks that carry heavy debt loads.
- CoreWeave shares are sliding. What’s behind CRWV decline?
CoreWeave Hits New 52-Week Low as Rates Rise
CoreWeave shares are trading at new 52-week lows on Thursday amid broader weakness in AI names. The stock has a $52-week high of $141.79, which shows how far the stock has fallen from its peak.
Shares have continued to face selling pressure all week with the stock down about 17% in five days and close to 34% in a month. Over six months, the stock has lost approximately 53%.
CNBC reported Wednesday that CoreWeave faces a confidence problem on Wall Street. Investors who hold its shares and its bonds are both losing faith as rates jump and doubts about the AI build-out intensify. Many in the market now treat neocloud companies with large debt loads, CoreWeave included, as the AI trade most at risk.
Barclays credit analyst Andrew Keches summed up the mood in a Tuesday client note: “Sentiment is decidedly negative.” The analyst was describing tech corporate debt broadly. Keches also noted that investors’ views on AI swing sharply from one day to the next.
Analysts Split On CoreWeave
- Goldman Sachs analyst Gabriela Borges moved CoreWeave up to Buy from Neutral on Monday and set a $106 price target.
- HSBC analyst Abhishek Shukla stayed at Reduce on Tuesday, keeping a $39 price target.
Across the Street, the consensus rating is Buy and the average price target is $129.90. Individual targets run from $39 to $250.
CRWV Shares Are Tumbling
CRWV Price Action: CoreWeave shares were down 8.12% at $56.81 at the time of publication on Thursday. The stock is trading near its 52-week low of $57.23, according to Benzinga Pro.
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