Episode Details

AI cloud stocks took a hit Wednesday as CoreWeave and Nebius plunged 14% and 17%, respectively, after reports surfaced that Meta is eyeing entry into the AI cloud space — directly threatening their current customer base. CoreWeave, despite a $100B work backlog and strong revenue forecasts, is burdened by $24B in debt and soaring interest costs, having spent $7B on hardware alone in Q1. Nebius, smaller but growing faster, is already turning a profit with upfront customer payments, backed by Nvidia investment and a healthy cash reserve. Both face the same risk: being squeezed by the very tech giants they serve. While CoreWeave looks cheaper, its debt is a red flag. Nebius, with stronger growth, better margins, and a more resilient balance sheet, may be the smarter bet for a rebound — if you dare to play at all.

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