Gil Luria, analyst at D.A. Davidson, warned on October 14, 2026 that CoreWeave shares could become worthless if the AI investment cycle slows. The stock dropped more than 15% in a single day following the warning. The analyst points to a significant gap between borrowing costs of around 9% and estimated returns on invested capital of just 1% to 4-5% at best, against total debt nearing $50 billion. The company’s bonds were also affected, with yields climbing to 15-16%, signaling high default risk according to credit default swaps. Despite the severity of the warning, Luria maintained a Neutral rating on the stock without issuing a formal sell call, while describing CoreWeave as a potential poster child for excess behavior in the AI infrastructure sector.
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