r/stocks • u/Appropriate_Top_5274 • 1d ago
Company Discussion CRWV, OPEN, SOFI Stocks Tumble To 52-Week Lows
Debt Concerns Shake CoreWeave's AI Growth Story
CoreWeave stock fell to an annual low of $59.51 as investors grew uneasy about $850 million in unsecured debt, with yields approaching 15%. Higher financing costs raised questions about whether the company's expansion plans could deliver attractive returns.
Some analysts, however, argued that the market reaction overlooked the company's commercial abilities. Cantor Fitzgerald maintained an "Overweight" rating and a $176 price target, describing the negative narrative as excessive. The firm pointed to strong demand for CoreWeave's computing capacity in 2027.
Jefferies also retained its "Buy" rating, with a $150 target. The firm said CoreWeave's short-duration contracts, valued at roughly $40 million per megawatt, could help offset more expensive funding. On Stocktwits, retail sentiment around the stock remained bullish.
Housing Slump Adds Pressure On Opendoor
Opendoor stock slumped to a new yearly low of $1.9 as fewer homes sold in the U.S. Pending home sales fell to their lowest level in 12 years, while 30-year mortgage rates climbed to 7.40% for the week ending Oct. 8, making home loans more expensive for buyers.
With fewer homes selling, Opendoor faces greater challenges buying and reselling properties. The company must cover the costs of holding homes for longer while earning less profit from the difference between buying and selling prices. Retail sentiment around the stock remained ‘bearish’.
SoFi Faces Questions About Earnings Quality
SoFi stock fell to a 52-week low of $13.86, reflecting concerns that rising revenue was not translating into earnings growth at the same pace.
The company reported second-quarter revenue of $1.22 billion and raised its full-year revenue outlook to $4.75 billion - $4.85 billion. However, its adjusted earnings-per-share outlook remained around $0.60 as increased marketing investment and customer acquisition costs weighed on profit.
Last week, Keefe Bruyette lowered its price target for SoFi to $15 from $16 and maintained an "Underperform" rating. The firm expects rising interest rates and SoFi’s growing balance sheet to create more than $1 billion in pressure this quarter, forcing the company to issue more loans while reducing its available capital. Retail sentiment around the stock turned neutral from bullish.
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u/btcnized 1d ago
IDK man, Jensen having to step in to publicly back CRWV's finances is a red flag for me. Will sit this one out
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u/pr0newbie 1d ago
Yeah I wonder what happens if 1 domino falls. Maybe NVIDIA will backstop it cos it all looks a bit fragile. I could be wrong though
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u/btcnized 1d ago
yea but that opens up a pandora box of NVIDIA stepping in when shit hits the fan. Markets will test that on multiple other fronts to see how NVIDIA sticks to the trade. It will get tough.
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u/Federal-Part-8949 1d ago
CoreWeave debt is scary, 15% yield on unsecured debt screams trouble, cant believe analysts still throwing $176 targets like nothing happened. Opendoor situation even worse, 7.4% mortgage with pending sales at 12 year low, they literally cant flip homes in this market. SoFi I kinda get the pain, growing revenue but spending everything on marketing to get there, that $1b pressure from rising rates is no joke
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u/Valuable-Term9559 1d ago
So I’m in SoFi for about 800 shares at about $15.50. Do I sell eight cc’s a month out for a strike of maybe 15 to try to get sone losses back, or do I just bail on the stock and go into something MRNA? It’s climbing like mad. Or Exxon/Chevron/Conoco?
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u/Low_Drive3170 1d ago
Funny how all three have the same root problem, cost of money. CoreWeave borrowing at near 15% means the spread on those GPU contracts better be huge, Opendoor lives and dies on mortgage rates, and SoFi’s balance sheet gets squeezed when rates climb