{"id":5689,"date":"2026-09-14T15:22:31","date_gmt":"2026-09-14T15:22:31","guid":{"rendered":"https:\/\/tradertideinsights.com\/?p=5689"},"modified":"2026-09-14T15:22:31","modified_gmt":"2026-09-14T15:22:31","slug":"iren-nebius-coreweave-heres-why-these-neocloud-stocks-are-falling","status":"publish","type":"post","link":"https:\/\/tradertideinsights.com\/?p=5689","title":{"rendered":"IREN, Nebius, CoreWeave:\u00a0 Here\u2019s why these neocloud stocks are falling"},"content":{"rendered":"
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Top neocloud companies have dropped sharply this year, even as their revenue growth continues. CoreWeave, the pioneer of the industry, slipped to $87, down sharply from its all-time high of $186. This retreat has pushed its market capitalization from over $88 billion to $49 billion today.<\/p>\n

Nebius stock slipped to $224 from the year-to-date high of $300. IREN, a Bitcoin miner pivoting to the AI data center industry, has also slipped to $43 from the year-to-date high of $77. All these companies have received large investments from Nvidia.<\/p>\n

CoreWeave, IREN, and Nebius are seeing strong demand<\/h2>\n

The most recent financial results showed that these companies are firing on all cylinders as demand for their GPUs continue rising. CoreWeave has taken a lead role, with its revenue backlog jumping to over $104 billion. This backlog is coming from its partnership with companies like Microsoft, Anthropic, and OpenAI. It has also become a top supplier to Jane Street.<\/p>\n

The results showed that CoreWeave\u2019s revenue jumped<\/a> by 112% to $2.6 billion, with its adjusted EBITDA moving to $1.5 billion. Analysts expect that its annual revenue will jump to $12.9 billion this year followed by $26.4 billion next year. <\/p>\n

Nebius also released strong numbers, with its revenue rising by over 400% during the quarter. This growth is coming from its large deals from companies like Microsoft and Meta Platforms, with analysts expecting its revenue to $3.34 billion this year and $12 billion next year.IREN, on the other hand, is expected to make $2.8 billion this year and $7.2 billion next year. <\/p>\n

Growth is coming at a cost<\/h2>\n

The main reason why these stocks are struggling is that this revenue growth is coming at a cost. For one, the AI boom has pushed the cost of GPUs, memory, servers, and optical systems much higher this year. As a result, they are having to spend more money than initially expected. <\/p>\n

A good example of this is CoreWeave, which expects to spend between $35 billion and $39 billion in capex this year. Before that, its goal was to spend between $30 billion and $35 billion in capex. <\/p>\n

The companies are now having to raise capital in debt and equity. Nebius raised over $2 billion by selling shares in the second quarter. It also has about 12 million shares that it can sell to fund its AI rollout. <\/p>\n

They have also boosted their debt substantially. CoreWeave has accumulated over $27 billion in debt in the past few months. Nebius has been much better since its business started as a spin off of Yandex, the top Russian search engine company. <\/p>\n

These metrics explains why these companies have received a substantial short interest. Nebius hs a short interest of 23%, while CoreWeave and IREN have a short interest of 12.8% and 24%, respectively. This means that investors expect the stocks to remain under pressure for longer.<\/p>\n

The stocks have also slipped as competition in the neocloud rises. SpaceX recently received a large order from a company that will pay it $1.1 billion a month starting from December. Meta Platforms and Microsoft are also starting to lease their extra space.<\/p>\n

IREN, Nebius, and CoreWeave stocks have also slipped because of the ongoing fears that the AI bubble will burst. Also, there are calls to slow the rollouts of more advanced AI models<\/a>.<\/p>\n

In the future, however, these companies will do well as their capital investment phase starts to wind up. This will lead them to start being free cash flow machines.<\/p>\n<\/p>\n

The post IREN, Nebius, CoreWeave:\u00a0 Here\u2019s why these neocloud stocks are falling<\/a> appeared first on Invezz<\/a><\/p>\n

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Top neocloud companies have dropped sharply this year, even as their revenue growth continues. CoreWeave, the pioneer of the industry, slipped to $87, down sharply from its all-time high of $186. This retreat has pushed its market capitalization from over $88 billion to $49 billion today.Nebius stock slipped to $224 from the year-to-date high of…<\/p>\n","protected":false},"author":1,"featured_media":5690,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5689","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5689","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5689"}],"version-history":[{"count":0,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5689\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/media\/5690"}],"wp:attachment":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5689"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5689"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5689"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}