CoreWeave (CRWV) Stock Plunges 15% as Musk Replies “Yikes” to Bond Yields

TLDR

• CoreWeave (CRWV) stock fell 15% to $65.78 on Wednesday as yields on its 2031 and 2032 bonds rose to about 15%.
• CEO Mike Intrator told staff the market is acting “irrationally” and said the company’s backlog covers its debt.
• Second-quarter net interest expense hit $640 million, and the company posted a $626 million net loss.
• Oracle fell 9%, Nebius dropped 10%, Dell lost about 11%, and the Nasdaq Composite closed down 2%.
• ARK Invest bought 188,665 CoreWeave shares worth about $12.4 million on the dip.

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CoreWeave (CRWV) stock closed at $65.78 on Wednesday, down 15% on the day. The drop came as yields on the company’s bonds climbed close to 15%.

CoreWeave, Inc. Class A Common Stock, CRWV

The yield on its 9.625% bond due in 2032 sat at 14.8%. The 9.75% bond due in 2031 was near 14.9%. Bond yields move opposite to prices, so the jump means investors are selling the debt.

The 2032 bonds briefly touched 15% on Tuesday. They closed near 14.5% that day.

Debt worries spread across tech

Investor Chamath Palihapitiya flagged the bond move on X late Tuesday. Elon Musk replied with one word: “yikes.”

BREAKING: Elon Musk reported “yikes” to a chart showing CoreWeave’s bond yield has spiked to 15%.

Chamath Palihapitiya had posted the chart to warn of a potential private credit bubble. pic.twitter.com/V1bzAlaxJb

— Short Squeez (@shortsqueeznews) October 14, 2026

The selloff reached beyond CoreWeave. Oracle closed down nearly 9%, and its 2032 bond yield rose to 7.24%. Nebius fell 10%, and Dell dropped roughly 11%.

The Nasdaq Composite closed down 1.9%. Hotter-than-expected inflation data added to worries about borrowing costs.

CEO Mike Intrator pushed back in a memo seen by CNBC. “When you are building a new type of technology company there will be periods of time when the market misunderstands and acts irrationally,” he wrote. He added that the backlog “more than supports all of our debt obligations.”

The numbers give both sides something to point to. Second-quarter revenue more than doubled to $2.58 billion, and the backlog reached about $104 billion. The company also added more than $25 billion in new commitments after the quarter ended.

But net interest expense rose from $267 million to $640 million in the quarter. That helped drive a net loss of $626 million.

CoreWeave expects to spend $35 billion to $39 billion on infrastructure in 2026. S&P rates the company B+, which is junk territory. An S&P Global analyst said its spending looks like a hyperscaler’s, but its balance sheet does not.

Analysts and funds weigh in

Paul Meeks of Freedom Capital Markets called the balance sheet “relatively bad” compared with other neocloud names. He said he does not share the concern about repayment. He expects margins to be flat from June to September and to improve between September and December.

Luis Alvarado of Wells Fargo Investment Institute said investors now want more pay for taking on risk. He said the era of easy money in the first nine months of the year is fading.

Other AI deals have stumbled too. Firmus canceled a planned $5.5 billion stock offering. AirTrunk reportedly delayed a $1.5 billion offering until next year.

Wall Street still leans positive on CoreWeave. TipRanks shows 20 Buy, five Hold and two Sell ratings. The average price target is $143.96.

Cathie Wood’s ARK Invest bought 188,665 CoreWeave shares on Wednesday, worth about $12.4 million. CoreWeave’s next quarterly results are due in November, and Intrator said he plans to address the concerns on that call.