CoreWeave shares collapsed 8% because of a possible threat to its project. Is it worth buying them?

Shares of CoreWeave, a provider of cloud computing for artificial intelligence, fell more than 8% in trading on February 20. Investors were concerned by Business Insider's report about difficulties in financing CoreWeave's new $4 billion data center in Pennsylvania. At the same time, Blue Owl, which was involved in raising money, denies the existence of problems.

CoreWeave shares fell by 8.1% at the end of trading on Friday - to $89.25. During the day, the quotations fell even more sharply - by 13%.

According to Business Insider, Blue Owl Capital was unable to arrange financing for the $4 billion data center it is building in Pennsylvania with CoreWeave. The project failed to generate interest because lenders and investors are now "increasingly wary of making large investments in AI players" with flawed credit ratings, BI writes. CoreWeave has a below investment grade rating of B+, according to S&P Global Ratings.

A Blue Owl spokesperson said the Business Insider article was "not true," Bisnow reports. The company told BI that it was considering third-party financing along with other options, but that the project is now under construction and is "fully funded, on time and on budget."

The timeline for the project has not changed: it's secured investment and is being built on schedule, CoreWeave CEO Michael Intrator told CNBC.

CoreWeave shares are up more than 21% since the start of 2026. Most analysts advise buying the company's shares: they have 19 Buy and Overweight ratings out of 33 combined, MarketWatch shows. Meanwhile, 13 analysts recommend holding (Hold) and one recommends selling (Sell).

The stock has an average target price of $124.71. This is 40% higher than the closing price on February 20.

CoreWeave announced the project in July 2025: it announced that it will lease 100 MW of capacity in a data center with an option to expand to 300 MW. The company said it will invest up to $6 billion in the project to equip the facility with chips and other cloud infrastructure, writes Business Insider.

In August, Chirisa Technology Parks announced a partnership with Blue Owl and Machine Investment Group to build the project. The partnership announced $4 billion in funding - separate from CoreWeave's investment.

Blue Owl is actively investing in building data centers. In October, it signed a deal with Meta to create a joint venture in which it received 80%. It will create a large data center campus in Louisiana worth $27 billion.

This article was AI-translated and verified by a human editor