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CoreWeave's Rising Financing Uncertainty Reduces Visibility, Morgan Stanley Says

CoreWeave's Rising Financing Uncertainty Reduces Visibility, Morgan Stanley Says

MT newswireMT newswire2026/10/23 15:10
11:10 AM EDT, 10/23/2026 (MT Newswires) -- CoreWeave (CRWV) has seen solid execution and has a leading position in the crowded neocloud space, but rising financing uncertainty has reduced visibility into the company's path to deploying contracted capacity, Morgan Stanley said in a note Friday. The company's unsecured credit spreads have widened by about 300 basis points on average since late August, and its shares have fallen more than 30% in the past month, the investment firm said. The widening credit spreads are causing uncertainty related to the cost and availability of capital to fund its expansion, according to the note. Morgan Stanley said delayed draw term loans, or DDTLs, have been CoreWeave's main financing mechanism, but additional DDTL financing would have to be supported by contracts with customers or off-takers with higher quality credit. The investment firm said the company would need between $24 billion and $37 billion in incremental financing to reach over 3 gigawatts of active capacity by the end of 2027. Morgan Stanley kept its equal-weight rating on CoreWeave and lowered the price target to $70 from $99. Price: 55.22, Change: -0.38, Percent Change: -0.69
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