Why does crwv pulled back today
6/5/2025 09:34pm
CoreWeave (CRWV) experienced a decrease of 5.11% on June 5, 2025. The decline of CoreWeave's stock today can be attributed to **recent negative news and market dynamics**.
1. **Debt and Interest Rate Concerns**: CoreWeave recently completed a $2 billion private offering of senior notes due in 2030, carrying a high interest rate of 9.250%. This significant debt accumulation, coupled with the high interest burden, could raise concerns among investors about the company's long-term financial health and the potential risk of default.
2. **Market Valuation and Profitability**: Despite CoreWeave's impressive growth and strategic deals, the company's stock has surged 275% since its IPO, leading to questions about its sustainability and the potential for a valuation downturn if the broader market slows down. Additionally, while the company reported a 420% year-over-year revenue increase in Q1, the profitability of such a heavily debt-financed growth model remains a risk factor.
These factors, combined with the broader market dynamics and investor sentiment, contributed to CoreWeave's stock pullback today.
|code|Ticker|Name|Date|Percentage Change|market_code|
|---|---|---|---|---|---|
|CRWV|CRWV.O|CoreWeave|20250529|-9.1261|185|
|CRWV|CRWV.O|CoreWeave|20250530|5.4571|185|
|CRWV|CRWV.O|CoreWeave|20250602|7.9867|185|
|CRWV|CRWV.O|CoreWeave|20250603|25.1913|185|
|CRWV|CRWV.O|CoreWeave|20250604|8.3865|185|
|CRWV|CRWV.O|CoreWeave|20250605|8.386496544391285|185|