CoreWeave CEO reassures employees about market scrutiny, highlighting strong order reserves in a memo to staff
Reuters, October 14 - CoreWeave CRWV.O CEO Mike Intrator said on Wednesday that the market sometimes “misunderstands and reacts irrationally,” as the artificial intelligence cloud computing service provider’s share price closed down about 15%.
Specific details are as follows:
In a memo sent to employees, Intrator stated that the company’s backlog of unfulfilled orders is sufficient to fully support its debt service obligations, according to a memo seen by Reuters
In the memo, Intrator said that issues such as difficulties and delays faced by some of CoreWeave’s competitors in seeking initial public offerings (IPOs) and debt financing “are influencing the market’s view of CoreWeave”
According to Bloomberg News (which first reported these comments earlier in the day), CoreWeave’s bond prices have plummeted to levels typically indicative of corporate distress
In another report citing Trace pricing data, Bloomberg News said that CoreWeave’s unsecured bonds due 2032 traded below 80 cents on the dollar on Wednesday
CoreWeave reported that its second-quarter revenue backlog totaled $104.2 billion (link), up from $99.4 billion in the first quarter
In addition to current orders, the company said it secured more than $25 billion in new net customer commitments in the third quarter
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