CoreWeave Shares Drop 7% as Rising Yields Pressure Leveraged AI Landlord
With the 10-year Treasury yield at 4.73%, CoreWeave’s 7% drop reflects higher financing costs for its heavy leverage. Interest expense hit $640M in the quarter, debt-to-equity is 8.94 and net debt/EBITDA 10.75, while second-quarter revenue doubled to $2.575B and backlog reached $104B. Cost of sales rose 180%, and negative free cash flow is expected to keep it dependent on capital markets.