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CoreWeave (CRWV) stock rebounded 7% on Monday after Goldman Sachs upgraded the neocloud provider to a Buy rating from Neutral.
The analyst also raised the stock’s price target from $106 to $139 per share following a sell-off of more than 25% last week.
A viral chart showing CoreWeave’s spiking bond yields last week underscored concerns about the company’s debt-heavy balance sheet and whether it can scale its business quickly enough to cover rising interest expenses.
Nvidia (NVDA) CEO Jensen Huang tried to ease concerns on Thursday about the company’s debt-heavy balance sheet by stating he was “optimistic” and that its “cost of capital is actually decreasing.”
61.39 -8.30 (-11.91%)
At close: October 16 at 4:00:01 PM EDT
65.98 +4.59 (+7.48%)
Pre-Market: 9:22:41 AM EDT
CRWV NBIS
Meanwhile, retail investors scooped up CoreWeave shares as their price cratered last week.
Data shows a record five-day net purchase volume for the stock on Robinhood Markets.
Wall Street came out in defense of CoreWeave over the past several days as the stock’s weakness weighed on the rest of the tech sector.
“CoreWeave exited the second quarter with a revenue backlog of ~$104 billion,” Yorkville Ives partner and senior managing director Dan Ives wrote.
“Those are commitments customers have already made, not data centers built on spec in the hope of finding tenants”
Ives added, “We view this white-knuckle drawdown as a golden buying opportunity.”
Ines Ferre is a senior business reporter for Yahoo Finance.
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