Analyst warns CoreWeave shares could fall to zero
Gil Luria, an analyst at D.A. Davidson, said CoreWeave's equity could be worthless if AI spending weakens, despite a $104 billion revenue backlog. Traders also bought bearish options as neocloud stocks fell.
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What happened
D.A. Davidson analyst Gil Luria warned that CoreWeave shareholders could lose everything if the AI spending boom weakens, saying the equity value is going to be zero. On Wednesday, traders piled into bearish bets on CoreWeave as neocloud stocks plunged. US chip stocks, including Nvidia, Oracle and CoreWeave, also slid as inflation and AI debt fears unsettled investors.
Timeline
- Oct 14, 9:35 AM ET: Gil Luria warned that CoreWeave shareholders could lose everything if the AI spending boom weakens, despite the company's $104 billion revenue backlog.
- Oct 14, 1:10 PM ET: Traders piled into bearish bets on CoreWeave as neocloud stocks plunged.
- Oct 14, 4:01 PM ET: US chip stocks, including Nvidia, Oracle and CoreWeave, slid as inflation and AI debt fears unsettled investors.
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