CoreWeave, Nebius, and Neoclouds Sink as Market Fear Index Closes in on ‘Extreme Fear’

CoreWeave (CRWV) and Nebius Group (NBIS) are plunging as fears of an AI financing crisis spread across Wall Street. With CNN's Fear & Greed Index approaching "Extreme Fear," investors are questioning whether the neocloud business model can survive rising borrowing costs. In this episode, 24/7 Wall St.'s Eric Bleeker breaks down why CoreWeave and Nebius have fallen more than 20% since October 8, and whether the sell-off represents a buying opportunity or a warning of deeper problems ahead. CoreWeave's unsecured bonds recently reached a 15% yield, raising concerns about its massive debt burden and ability to finance future expansion. Investor Chamath Palihapitiya has warned of a potential AI private credit bubble, while Elon Musk responded with a simple "Yikes." Despite these concerns, CoreWeave maintains a $104 billion revenue backlog, and NVIDIA (NVDA) CEO Jensen Huang has defended the company. Meanwhile, Cathie Wood's ARK Invest and Cantor Fitzgerald see opportunity in the sell-off. Eric examines Nebius' financing strategy, CoreWeave's soaring interest expenses, and why declining Treasury yields haven't stopped the bleeding. Are CoreWeave and Nebius bargain-priced AI investments, or is Wall Street uncovering a fundamental weakness in the neocloud business model?

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