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CoreWeave shares hit a 52-week low of $59.51 on worries about high borrowing costs.
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Opendoor faced pressure from weak U.S. home sales and high mortgage rates.
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SoFi’s slowing profit growth dampened sentiment.
CoreWeave Inc. (CRWV), Opendoor Technologies (OPEN) and SoFi Technologies (SOFI) hit fresh 52-week lows on Thursday as rising debt costs, a sluggish housing market and mounting profit pressures rattled investors. Despite Wall Street’s defense of CoreWeave’s AI demand outlook, concerns over financing costs and earnings growth weighed on the three stocks.
CoreWeave, SoFi, and Opendoor all pared their losses and ended the session 5%, 6%, and 16% higher, respectively.
Debt Concerns Shake CoreWeave’s AI Growth Story
CoreWeave stock fell to an annual low of $59.51 as investors grew uneasy about $850 million in unsecured debt, with yields approaching 15%. Higher financing costs raised questions about whether the company’s expansion plans could deliver attractive returns.
Some analysts, however, argued that the market reaction overlooked the company’s commercial abilities. Cantor Fitzgerald maintained an ”Overweight’ rating and a $176 price target, describing the negative narrative as excessive. The firm pointed to strong demand for CoreWeave’s computing capacity in 2027.
Jefferies also retained its ‘Buy’ rating, with a $150 target. The firm said CoreWeave’s short-duration contracts, valued at roughly $40 million per megawatt, could help offset more expensive funding. On Stocktwits, retail sentiment around the stock remained ‘bullish’.
Housing Slump Adds Pressure On Opendoor
Opendoor stock slumped to a new yearly low of $1.9 as fewer homes sold in the U.S. Pending home sales fell to their lowest level in 12 years, while 30-year mortgage rates climbed to 7.40% for the week ending Oct. 8, making home loans more expensive for buyers.
With fewer homes selling, Opendoor faces greater challenges buying and reselling properties. The company must cover the costs of holding homes for longer while earning less profit from the difference between buying and selling prices. Retail sentiment around the stock remained ‘bearish’.
SoFi Faces Questions About Earnings Quality
SoFi stock fell to a 52-week low of $13.86, reflecting concerns that rising revenue was not translating into earnings growth at the same pace.
The company reported second-quarter revenue of $1.22 billion and raised its full-year revenue outlook to $4.75 billion – $4.85 billion. However, its adjusted earnings-per-share outlook remained around $0.60 as increased marketing investment and customer acquisition costs weighed on profit.
