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Why CoreWeave, Nebius, and other neocloud stocks are being pounded: Goldman Sachs explains
Neocloud stocks like CoreWeave (CRWV) and Nebius (NBIS) are poised to cap off a horrible week in their relatively short time in public markets.
CoreWeave and Nebius stocks are both down about 15% just in the past five days.
While concerns about CoreWeave's financial health are being blamed for the neocloud stock routs, the reality is that it's not just a CoreWeave issue. The overall financial health of the AI economic system build-out is being more closely scrutinized in a land of higher-for-longer interest rates.
Goldman Sachs explained the pressure quite well in a new note on Friday.
US dollar high-yield AI-related debt spreads widened by 25 basis points between Oct. 13 and 14, reaching a new high of 360 basis points over Treasurys. By contrast, non-AI-related debt spreads were only two basis points wider and remain below their March peak, Goldman Sachs pointed out (see charts below).
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