CoreWeave 3Q earnings spark a neocloud rally; Nebius is up 15% early
Nebius and IREN shares and Nasdaq 100 futures advanced alongside CoreWeave
Nebius shares have gained 15% ahead of the company’s earnings on Thursday / Photo: Piotr Swat / Shutterstock.com
Shares of neocloud companies rallied in premarket trading Wednesday after CoreWeave reported strong third-quarter results on Tuesday. CoreWeave stock had jumped 17% as of this writing. Nebius, due to report its latest financials on Thursday, gained 15%. IREN was up 7%.
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CoreWeave’s earnings eased investor concerns about demand for AI infrastructure, GuruFocus reports. This has helped lift Nasdaq 100 futures 1.9% ahead of the opening bell on Wednesday, beating back headwinds from an increasingly likely Fed rate hike in December after the latest U.S. inflation numbers, Bloomberg reports.
CoreWeave reported third-quarter revenue of $3.66 billion, up 168% year over year, and a contracted order book of $132.5 billion. The management also raised its full-year revenue forecast to $13.0-13.3 billion, above analysts’ expectations.
The results helped neocloud stocks rebound after a recent selloff. “It would appear overnight that the market feels a little bit more comfortable with the AI trade,” Roger Lee, head of equity strategy at Cavendish, said. “Coreweave had some very good numbers, and the Korean market was reasonably strong overnight.”
Overall, CoreWeave confirmed that customer demand for computing capacity remains strong. The company’s $46.9 billion debt load remains a concern, however, GuruFocus notes.
