Goldman Sachs upgrades CoreWeave to buy, calling debt fears overblown

Goldman Sachs looked at CoreWeave’s battered stock and decided the panic had gone too far. On October 19, 2026, the bank upgraded the AI cloud provider (NASDAQ: CRWV) from Neutral to Buy. The timing is notable. The upgrade landed after a week in which CoreWeave shares fell about 25%. A lower target, but a bigger gap The upgrade came with a twist. Goldman actually lowered its price target to $106, down from $139. Even the reduced target implies approximately 73% upside from the prior closing price. Beyond last week’s roughly 25% slide, the stock has dropped about 43% since CoreWeave reported second-quarter results on August 11. Revenue hit $2.58 billion, up from $1.21 billion a year earlier. CoreWeave posted a net loss of $626 million for the quarter. Why the debt markets got nervous CoreWeave’s debt obligations were nearing $52 billion by the end of June 2026. The company’s unsecured bonds have yielded as much as 15%. CoreWeave’s CDS spiked above 1,000 basis points before easing. A basis point is one hundredth of a percentage point, so that reading put the annual cost of protection above 10% of the insured amount. Goldman’s case: backlog and collateral Goldman analyst Gabriela Borg...