CoreWeave Stock Drops Nearly 15% After Cramer Endorsement Amid Bond Sell-off

CoreWeave stock fell nearly 15% on Wednesday, less than a day after Jim Cramer called it the only neocloud company he trusts. The decline followed a sell-off in CoreWeave’s bonds, pushing the yield on $1.25 billion of 2032 bonds to 15%. CoreWeave, which rents Nvidia chips to AI developers, has total debt of about $52 billion by June, exceeding its roughly $37 billion stock market value. The company's interest bill jumped to $640 million in the April-to-June quarter, even as revenue more than doubled to $2.58 billion. Currently trading at $65.93, the stock is below the lowest analyst target of $74, despite 20 of 27 analysts rating it a Buy.