When your bonds yield 15.58%, the market is telling you something. CoreWeave Inc. (NASDAQ:CRWV) is hearing it loud and clear.
The company's 9.75% notes due October 2031 traded near 80.6 cents on the dollar on Tuesday, pushing their yield to 15.58%, up from about 11.3% in mid-August. That is a big move in a hurry for debt that was priced as investment-grade-adjacent not long ago.
Shares were last down 2.8% at $59.39, slightly trimming losses after touching $57.24 intraday, their lowest level since May 13, 2025. The stock is now down 32% in a month, 17% this year and 57% from its June high of $138.25.
So what is going on? On Monday, Goldman Sachs analyst Gabriela Borges upgraded CoreWeave to Buy from Neutral while cutting her price target to $106 from $139, according to MarketDash Analyst Ratings. Borges noted that CoreWeave raised computing prices by 25% in July and by another 10% in October. Goldman estimates the company's average borrowing costs could rise by 100 to 200 basis points while returns on new projects stay attractive.
HSBC disagrees. On Monday, it kept a Reduce rating and a $39 target, estimating CoreWeave could generate about $12 million in annual revenue per megawatt in 2027, against $17 million to $18 million for larger cloud providers.
Mizuho cut its target to $88 from $115 last week. Rothschild & Co started coverage in September with a Sell rating and a $54 target.
The average analyst target is $135, more than double the share price. That is a remarkable spread between the bulls and the bears, and it tells you the market has not settled on what CoreWeave is worth. The bond market, at least, has an opinion.
