Quick Read

• CoreWeave (CRWV) fell 7% as the 10-year yield hit 4.7%, punishing its net debt-to-EBITDA of 10.75 and $640M quarterly interest expense.

• Peers Nebius (NBIS), Cloudflare (NET), and Snowflake (SNOW) shed less than 1% each, while unleveraged WCLD gained 2%, isolating the drop to CoreWeave's debt structure.

• Despite a $104B backlog and 59% adjusted EBITDA margin, CoreWeave's negative free cash flow demands continuous capital markets access as cost-of-sales rose 180%.

• Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and CoreWeave, Inc. Class A Common Stock didn't make the cut. Grab the names FREE today.

Shares of CoreWeave (NASDAQ:CRWV) are down 7% Tuesday morning to $98.11, an outlier decline on a day when the broader cloud software basket trades higher. The catalyst is rising Treasury yields rather than any change in AI demand.

The 10-year Treasury yield sits at 4.73%, near the top of its 52-week range of 3.95% to 4.75%. For the most debt-dependent name in AI infrastructure, that repricing hits harder than for any listed peer. Our coverage of David Tepper's disclosed second-quarter positions discussed CoreWeave's capital structure earlier today.

Why Yields Are the Story

CoreWeave finances multi-billion-dollar data center construction with borrowed money, and much of its earnings sit years in the future. Higher yields raise both the interest cost on that debt and the discount rate applied to those future cash flows. Both dials moved against the stock at once.

The Q2 2026 balance sheet spells out the exposure. Interest expense reached $640 million in the quarter, debt-to-equity sits at 8.94, and net debt to EBITDA is 10.75.

The bull case is real. Second-quarter revenue doubled to $2.575 billion, backlog stands at $104 billion, and adjusted EBITDA margin is 59%. The net loss came in narrower than analysts had modeled.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and CoreWeave, Inc. Class A Common Stock didn't make the cut. Grab the names FREE today.

Meanwhile, the bear case is that deeply negative free cash flow requires continuous capital markets access, and cost of sales rose 180% last quarter, matching the pace of the two prior quarters. A business with a 59% adjusted EBITDA margin and a $104 billion backlog still faces a first-order cost-of-money problem, with $640 million of interest expense and net debt to EBITDA of 10.75 keeping the equity sensitive to rates.

Peers Are Barely Moving

Nebius Group (NASDAQ:NBIS) stock is down 0.9% to $266.50, essentially flat. The company is also leveraged, with roughly $10 billion in aggregate convertible principal across six series maturing from 2029 to 2033, plus a $775 million senior secured facility collateralized by GPU infrastructure and contracted cash flows. Remaining performance obligations stand at $37.5 billion, anchored by a five-year, $12 billion deal with Meta Platforms (NASDAQ:META).