Elon Musk Predicts 'Guppy-Level Death' for Neoclouds. Here's Why I'd Buy Nebius Over CoreWeave Before Q3 Earnings.

Neocloud stocks have taken a heavy hit over the past month as investors worry about how these companies fund data centers, particularly because much of the financing is borrowed and borrowing costs have risen. Elon Musk warned of a “guppy-level death” and consolidation for the 200-plus neoclouds, while Nvidia CEO Jensen Huang said demand is “off the charts.” In that period, CoreWeave (CRWV) fell 43% and Nebius (NBIS) dropped about 41%. CoreWeave reports on Nov. 10 and Nebius on Nov. 12. CoreWeave, founded in 2017 and led by CEO Michael Intrator, is headquartered in Livingston, New Jersey, with Microsoft as its largest customer. Nebius, led by Arkady Volozh, is based in Amsterdam and formed in 2024 after separating from Yandex’s Russian business. The article highlights CoreWeave’s balance sheet, noting roughly $51.6 billion in total debt versus $5.5 billion in cash, and interest expenses of $860 million to $940 million in the quarter.