Goldman's CoreWeave upgrade is three days old, and so far it has achieved precisely nothing.On Monday, Goldman's Gabriela Borges upgraded CoreWeave (CRWV) to Buy (in the process cutting her price target by almost a quarter) which is a creative way to turn bullish:"Not Great, Not A Surprise"
CoreWe've Got Bills To Pay: Bernstein Sees $76 Billion Funding Hole At Imploding Neocloud
Goldman upgrades CoreWeave to Buy with $106 PT, but stock falls; Bernstein counters with $76B funding gap vs Goldman's
· Source: zerohedge.com
Summary
Goldman Sachs upgraded CoreWeave (CRWV) to Buy on Monday with a $106 price target, but the stock immediately reversed gains and has fallen further to $56.70. Bernstein Research published a scathing rebuttal estimating CoreWeave needs $76 billion in fresh capital to deliver existing contracted backlog—more than three times Goldman's $23 billion estimate. Bernstein's analysis reveals structural problems: CoreWeave faces amortizing debt obligations starting now, unsecured borrowing costs at 15%, unlevered returns of only 9% on flagship contracts, and a business model where shorter strategic contracts (needed to compete) actually increase funding costs. Goldman's own financial model contradicts its headline scenario, showing $91 billion in debt by 2028 and interest coverage below 1.0x through 2027.
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