Bernstein maintained its "Underperform" rating on CoreWeave (CRWV) after the release of its Q3 2026 earnings report, with a long-term price target of $54. The firm acknowledged the strong performance of the company's results reported on November 10th, and continued improvement in financing arrangements and operational execution. However, it believes the long-term stock performance still depends on three conditions: continued tight data center supply, continued customer prepayment, and the company's eventual transformation into a self-financing hyperscale cloud service provider. Bernstein is particularly concerned that the addition of over 55GW of computing power by 2028 could weaken the current high-price leasing model. Financially, CoreWeave's net interest expense reached $846 million in Q3, exceeding adjusted operating profit of $379 million; debt increased by $11.8 billion in the quarter. The company's adjusted net profit is not expected to turn positive until the first half of 2028. Bernstein believes that while the company's execution is improving, the long-term economic viability of its business model still lacks sufficient evidence.
