Neocloud Stocks Gain After CoreWeave's Results Ease Investor Concerns Over Financing Costs

By Kelly Cloonan

Other neocloud stocks gained after CoreWeave reported better revenue and backlog than Wall Street was expecting in the latest quarter, helping to ease concerns over its rising borrowing costs.

Shares of Nebius Group climbed 13% to $151.84 in premarket trading on Wednesday, while Applied Digital rose 10%. Iren was up 7.5%.

CoreWeave--which buys advanced artificial-intelligence chips, installs them in data centers and leases them to companies like Microsoft and OpenAI--is the first major neocloud provider to report earnings for the latest quarter as it contends with investor worries over its growing financing costs.

The company looked to ease those concerns, stating that its growth is supported by multiple sources of funding including financing backed by customer contracts and customer prepayments.

Chief Executive Michael Intrator also said during a call with analysts that the company wouldn't use the unsecured debt market to fund its business at current yields. CoreWeave's unsecured bond prices have slid recently, suggesting it would be extremely costly or impossible to bring in more money through debt issuances.

Citi analysts said the company's results were strong, and its messaging around financing and data center issues were reassuring.

"We were particularly encouraged by commentary around higher pre-payments and no expected high-yield debt market needs with limited incremental parent-level capital required through 2027," the analysts said, noting that demand commentary also remained notably strong.

"We see positive read-throughs to other neoclouds," the analysts added.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

November 11, 2026 09:12 ET (14:12 GMT)