HSBC says CoreWeave shares to drop 30%+ as ROIC of 8.9% lags borrowing costs
GaryMarcus · x · 2026-10-21
An HSBC note by analyst Abhishek Shukla argues CoreWeave (CRWV) earns an average 2026-30 ROIC of only 8.9%, below its cost of borrowing — "the more the company invests with this return profile, the more the value destruction." Citing structural concerns for neoclouds, HSBC expects the stock to fall another 30%+. Gary Marcus amplified the analysis, highlighting risks in the AI compute-rental business model.
Related event: HSBC Keeps Reduce Rating on CoreWeave, Sees Over 30% Downside(2 posts)→
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