The neocloud stock rout continues as Elon Musk warns of 'guppy-level death'
Source: Business Insider ·
Shares in CoreWeave and Nebius fell further in premarket trading after Elon Musk warned about the cloud-computing sector on Sunday.
From the source
Elon Musk said that many neocloud companies face "guppy-level death."Bloomberg/Getty ImagesShares in neocloud companies are falling over concerns about their levels of debtCoreWeave and Nebius, two major public neoclouds, have seen their stocks drop sharply in recent weeks.On Sunday, Elon Musk questioned the sector, saying that "some will make it through, but not many."Neocloud companies are sliding even lower.Shares dropped further on Monday after Elon Musk warned that many of them face "guppy-level death."CoreWeave and Nebius have both fallen more than 30% over the past month, largely due to growing concerns about the debt they've taken on to build more data centers.In early premarket trading on Monday, CoreWeave was down another 5%, and Nebius was down 3%, though those losses pared somewhat as the opening bell approached. Iren, another publicly traded neocloud, saw a near 3% premarket drop Monday.The declines follow a string of X posts from Musk on Sunday evening questioning the…