CoreWeave stock rebounds on revenue growth despite negative carry trade concerns

CoreWeave reported revenue growth of 68 percent to over 1.36 billion dollars, accompanied by a net loss of over 700 million dollars. The positive reception to these figures drove the stock price up from 40 dollars to 60 dollars, although it remains 25 to 30 percent below its yearly average. This recovery reflects strong demand for AI compute and inference, suggesting that data center capacity is becoming a scarce asset that benefits existing owners through higher margins.

Despite the stock rebound, analysts have raised concerns about the company’s financial structure. Gil Luria of DA Davidson calculated that CoreWeave’s adjusted operating income yields a 3 percent return on investment, while its cost of capital exceeds 9 percent, creating a negative carry trade even in a market with a compute shortage. Luria noted that the company stated on its earnings call that it can no longer access unsecured debt markets and must raise equity or ask customers to prepay for full capital expenditure. He argued that previous downside protection for shareholders relied on support from NVIDIA, a dynamic that may disappear if leadership changes occur. Separately, Munich-based Agile Robotics secured 500 million dollars in funding led by SoftBank at an 8.5 billion dollar valuation, highlighting continued investment in robotics infrastructure.