Stock Market Today, Oct. 22: CoreWeave Slides on Bernstein Downgrade and Financing Worries
CoreWeave (NASDAQ:CRWV), a specialized AI cloud infrastructure and GPU hosting provider, closed at $55.60, down 10.06%. Bernstein cut its target even as Nvidia CEO Jensen Huang said demand for neoclouds is "off the charts."
Trading volume reached 79.7 million shares, coming in about 122% above its three-month average of 35.9 million shares. CoreWeave IPO'd in 2025 and has grown 39% since going public.
How the markets moved today
The S&P 500 (SNPINDEX:^GSPC) fell 1.22% to 7,663, while the Nasdaq Composite (NASDAQINDEX:^IXIC) dropped 2.60% to 26,009. Among AI infrastructure and so-called neocloud companies, industry peers also weakened. Nebius Group closed at $159.17, down 7.23%, and Iren closed at $25.51, down 8.37%.
What this means for investors
On Thursday, CoreWeave hit a new 52-week low as investors focused on higher interest rates and financing pressure. Debt costs are keeping the focus on neocloud companies that borrowed heavily to supply data center compute capacity.
Bernstein analyst Madison Rezaei cut her price target to $51 from $74 per share on CoreWeave, keeping an "Underperform" rating. The move was based on financing concerns, with the firm estimating that CoreWeave needs about $85 billion to fund its committed backlog.
At the same time, Jensen Huang and Blackstone chief operating officer Jon Gray both commented on the strength of demand for compute capacity. Gray specifically complimented CoreWeave's management. In an interview with CNBC, he stated, "Some of these companies have very talented CEOs. CoreWeave is a good example of this. They'll find a way through it, but that's the challenge they face. The underlying business is actually quite strong."
Fear in the sector appears to be presenting investors with good opportunities in companies positioned to manage their investments and financing.
Should you buy stock in CoreWeave right now?
Before you buy stock in CoreWeave, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CoreWeave wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $350,756!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,363,905!*
Now, it’s worth noting Stock Advisor’s total average return is 922% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of October 22, 2026.
Howard Smith has positions in Blackstone and Iren. The Motley Fool has positions in and recommends Blackstone. The Motley Fool has a disclosure policy.
Recommended Articles
