Shares tumbled 14% Wednesday morning, after a 3% drop on Tuesday. The slump was fueled by a social media post by venture capitalist Chamath Palihapitiya of a chart showing that the yield on CoreWeave’s 2032 bonds touching 15% and framed it as a warning sign of a “private credit bubble” around the AI buildout.
That credit fear is all over the options positioning. Gamma exposure — a measure of how dealers’ hedging can push the stock around — shows the shares trading near the $60 “put wall” (a strike stacked with put options that acts like a magnet for the price) and below the $74.54 gamma flip level, according to exchange data tracked by moomoo. Below that flip, dealer hedging tends to exaggerate moves instead of calming them, which helps explain why the stock feels so jumpy: with fear this concentrated, every headline gets amplified into the share price.
This column is still in development, so please check back for updates. In the meantime, please share your thoughts on CoreWeave in the comments section. Can the stock bounce from here?
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