HSBC Downgrades CoreWeave (CRWV) Stock Amid Liquidity Concerns and Capex Challenges

Reported 1 day ago

CoreWeave (NASDAQ: CRWV) has been downgraded to 'Reduce' by HSBC, which set a price target of $32 per share, citing liquidity strains and an overreliance on major customers like Microsoft, Open AI, and Nvidia. Analyst Abhishek Shukla warned of high capital expenditure due to the short lifespan of graphic processing units and indicated that the company's revenue may face challenges, especially as it diversifies its customer base. Overall, HSBC expressed that CoreWeave's financial outlook is concerning, given the anticipated high capex and liquidity issues.

Source: YAHOO

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