Why CoreWeave Stock Is Down 11.8%
Key Points
CoreWeave stock plunged more than 11% on Tuesday as President Trump confirmed no Iran negotiations are underway, rattling markets.
Rising oil prices and 20-year-high bond yields are creating a hostile environment for heavily leveraged, high-growth stocks.
CoreWeave's debt-to-equity ratio exceeds 14, making it particularly vulnerable in today's risk-off market environment.
- 10 stocks we like better than CoreWeave ›
CoreWeave Inc (NASDAQ: CRWV) stock is down on Tuesday, falling 11.8% as of 2:05 p.m. ET. The S&P 500 and the Nasdaq Composite are down 0.6% and 1.4%, respectively.
President Trump said Tuesday that talks with Iran are not underway, walking back earlier claims that negotiations were in progress. That's spiking fear in the market.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Why CoreWeave stock is dropping today
In a Truth Social post on Tuesday, Trump said there were "no talks or conversations going on, or scheduled, with the Islamic Republic of Iran."
The war has sent oil prices soaring. And while they're down from their peak earlier in the war, they've been climbing in the last week and remain roughly 30% above pre-war levels.
Image source: Getty Images.
That's compounding an already tough inflation picture for the Fed, and bond yields have climbed right along with oil -- the 30-year Treasury rate is now at its highest point in almost 20 years. subhead
CoreWeave's heavy debt load adds to the risk
When the macro picture looks like this, it often leads to traders selling out of high-growth, high-risk stocks, especially those carrying loads of debt and trading at extreme multiples.
Both can be said about CoreWeave. The company is heavily leveraged -- its debt-to-equity ratio is more than 14 and continues to climb -- and its stock is certainly pricey. I would avoid it.
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 $409,970!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,040!*
Now, it’s worth noting Stock Advisor’s total average return is 969% — a market-crushing outperformance compared to 215% 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.
*Stock Advisor returns as of August 18, 2026.
Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
