CoreWeave shares fell 10.06% on Oct. 22 after Bernstein cut its price target on financing concerns. The selloff hit other neocloud stocks and came as the Nasdaq Composite dropped 2.60%.
CoreWeave closed at $55.60, down 10.06%, after Bernstein lowered its target on the AI cloud infrastructure provider. The cut came even as Nvidia CEO Jensen Huang said demand for neoclouds is "off the charts."
Trading volume reached 79.7 million shares, about 122% above the three-month average of 35.9 million shares.
Bernstein targets CoreWeave's funding needs
Bernstein analyst Madison Rezaei cut her price target to $51 from $74 per share and kept an Underperform rating. The firm based the move on financing concerns.
The firm also estimates CoreWeave needs about $85 billion to fund its committed backlog. On Thursday, the stock hit a new 52-week low as investors focused on higher interest rates and financing pressure.
Peers and indexes slide
Industry peers weakened too. Nebius Group closed at $159.17, down 7.23%, and Iren closed at $25.51, down 8.37%.
The S&P 500 fell 1.22% to 7,663, while the Nasdaq Composite dropped 2.60% to 26,009.
Blackstone's Gray backs the business
Huang and Blackstone chief operating officer Jon Gray both commented on the strength of demand for compute capacity. Gray specifically complimented CoreWeave's management, saying in a CNBC interview that the underlying business is actually quite strong.
Source: The Motley Fool
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