$Coreweave(CRWV.US) is down about 17% today near $65 after its unsecured bonds due 2032 fell below 80 cents on the dollar, pushing yields above 15%, per Bloomberg

That is the level credit markets usually treat as distressed

The selloff is spreading across the AI cloud trade. $IREN(IREN.US) is down 12%, $Nebius(NBIS.US) 11% and $Oracle(ORCL.US) 9%, while $NVIDIA(NVDA.US) is off 3.5% and the Nasdaq 100 is down more than 2%

Options traders piled in too. $Coreweave(CRWV.US) saw nearly 200,000 puts trade vs 106,000 calls, and one buyer paid $1.9M for 26,000 December $37.50 puts, per CNBC

CEO Mike Intrator told Bloomberg the market is acting "irrationally" and that he remains confident in the company

The stock is now down about 29% since Oct 6 and sits roughly 57% below its 52 week high near $150

Demand has not cracked here. Backlog was $104B last quarter and Q3 revenue is expected to grow about 159%. What changed is the price of money. When GPUs are funded with debt and the bonds yield 15% on the same morning CPI runs hot, the equity gets repriced first. The thing to watch is whether $Coreweave(CRWV.US) can keep raising capital at a cost below what its GPUs earn

Source: StockMarket.News