CoreWeave Inc. (NASDAQ:CRWV) shares are trending Thursday after falling 5.93% to $61.88 in after-hours trading on Wednesday.
The New Jersey-based AI cloud-computing company closed the regular session at $65.78, down 15.46%, according to Benzinga Pro data.
Analyst Flags Debt Risk
On Wednesday, D.A. Davidson analyst Gil Luria warned that CoreWeave’s equity could be wiped out if AI spending slows. "The equity value is going to be zero," he said.
Luria estimates the company borrows at about 9% while earning roughly 1% on its investments. He described a downside scenario, not a formal forecast.
Co-Founder Defends Financing
CoreWeave’s combined debt and lease obligations stood near $52 billion at the end of June. Second-quarter net interest expense was $640 million, up from $267 million a year earlier.
Brannin McBee, CoreWeave’s co-founder, told the Financial Times the company is seeking cheaper funding from insurers. He said heavy spending reflects expansion, not weakness. If CoreWeave stopped building, he said, it would be "immensely cash-flow positive."
Insider Trades
On Wednesday, Chief Financial Officer Nitin Agrawal and Chief Revenue Officer Jonathan Jones reported selling shares under pre-arranged plans.
Agrawal sold 22,579 Class A shares on Monday at weighted-average prices of $79.954 and $80.5073, according to the Securities and Exchange Commission filing. The transaction amount was about $1.81 million.
Jones sold 37,380 shares on Monday and Tuesday at prices between $76.30 and $80.37. The total transaction value was about $2.94 million.
Trading Metrics, Technical Analysis
CoreWeave has a market capitalization of about $36.28 billion. Over the past 52 weeks, its stock has traded as high as $150.40 and as low as $60.55.
CRWV has a Relative Strength Index (RSI) of 29.18.
Over the past 12 months, the small-cap stock has fallen 52.76%.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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