From Futuriom · · 2m
CoreWeave and Nebius stocks rise despite mounting concerns
Two AI cloud providers beat earnings expectations but face questions about customer concentration and massive debt loads.
In brief
Two AI cloud providers beat earnings expectations but face questions about customer concentration and massive debt loads. CoreWeave and Nebius show explosive revenue growth but remain unprofitable, heavily indebted, and dangerously reliant on just a few customers. Originally reported by Futuriom.
Neocloud stocks surge on earnings
CoreWeave and Nebius shares soared this week after both companies beat Wall Street expectations. But the strong reports raised new questions for some investors.
CoreWeave revenue doubles
For the quarter ended June 30, CoreWeave reported $2.58 billion in revenue, up 112% year-over-year. The company claimed a sales backlog of $108 billion, up 246%.
CoreWeave loses $626 million
CoreWeave reported a net loss of $626 million, up 116% year-over-year. Capital expenditures hit $6.42 billion, up 162%.
Spending far outpaces revenue
CoreWeave projects full-year 2026 capex between $35 billion and $39 billion. Revenues are guided to fall between just $12.4 billion and $13.2 billion.
Nebius revenue jumps 454%
Nebius reported $582.2 million in revenues for the quarter ended June 30, up 454%. Net cash from operating activities was $2.25 billion.
Nebius also loses money
Nebius posted a net loss of $190.4 million, or 68 cents per share. The company spent $5.66 billion on capex, up over 1,000% year-over-year.
Three customers drive 72% of sales
CoreWeave's SEC filing reveals 72% of sales came from three customers, including OpenAI and Meta. No other single customer accounted for 10% or more of revenue.
“We anticipate that we will continue to derive a significant portion of our revenue from a limited number of customers for the foreseeable future”
Nebius relies on four big deals
CEO Arkady Volozh noted that a substantial amount of Nebius revenue came from four landmark deals of more than $1 billion each.
Power supply remains a challenge
CoreWeave has 1.5 GW of power on hand and 4.2 GW contracted, targeting 8 GW by decade's end. Nebius expects 5 GW contracted by end of 2026.
U.S. grids can't handle demand
Electrical grids in the U.S. won't be sufficient for AI factories' power demands. NVIDIA recently invested in Lancium, showing power is as key as GPUs.
Competition intensifies for power
Companies like IREN and xAI are also clamoring for datacenter power and infrastructure. These pressures could force both companies into further debt.
Both carry $46 billion in debt
CoreWeave carries over $46 billion in debt, and Nebius holds $46.7 billion. Both companies continue to lose money despite strong revenue growth.
In short
CoreWeave and Nebius show explosive revenue growth but remain unprofitable, heavily indebted, and dangerously reliant on just a few customers.
