Stock Market Today, Feb. 20: CoreWeave Falls After Blue Owl Data Center Financing Failure Raises Funding Concerns
CoreWeave (NASDAQ:CRWV), cloud platform for AI infrastructure management, closed Friday at $89.25, down 8.12%. Shares fell after Blue Owl Capital’s (NYSE:OWL) failed $4 billion data-center debt placement raised new concerns about project financing, and investors are watching the February 26 earnings report and ongoing securities litigation risks.
Trading volume reached 46 million shares, coming in about 65% above its three-month average of 27.9 million shares. CoreWeave IPO'd in 2025 and has grown 123% since going public.
How the markets moved today
S&P 500 (SNPINDEX:^GSPC) added 0.70% to finish Friday at 6,910, while the Nasdaq Composite (NASDAQINDEX:^IXIC) rose 0.90% to close at 22,886. Among internet services and infrastructure peers, Microsoft (NASDAQ:MSFT) closed at $397.23 (-0.31%) and Alphabet (NASDAQ:GOOGL) finished at $314.98 (+4.01%), reflecting mixed reactions across major cloud and AI players.
What this means for investors
CoreWeave stock tumbled after reports on Blue Owl’s failed attempt to obtain approximately $4 billion in debt financing for a Pennsylvania data center associated with CoreWeave put pressure on shares and sparked concerns about funding AI capacity.
Even though there was reassurance that the project remains on track, investors don’t like uncertainty. A new Morgan Stanley (NYSE:MS) “Equal Weight” rating and $99 price target didn’t give investors reason to bid shares higher, either.
It’s likely that investors will remain cautious on CoreWeave at least until its upcoming earnings report on Feb. 26.
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Howard Smith has positions in Alphabet and Microsoft. The Motley Fool has positions in and recommends Alphabet and Microsoft. The Motley Fool has a disclosure policy.
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