Nebius, CoreWeave Stocks Slide as Shorts and Profit-Taking Rise

Shares of CoreWeave (CRWV) and Nebius (NBIS) declined over the past few trading sessions as investors locked in gains and short interest increased. CoreWeave shares traded near $95, about 32% below their May peak. Nebius shares are roughly 20% below their year-to-date high.

Traders scaled back positions after sharp rallies earlier this year in the neocloud sector. Short interest on CoreWeave moved to roughly 14%, while Nebius short interest rose to about 20% of the float.

Both companies have posted rapid revenue growth and landed large customer agreements. Nebius reached a multiyear $27 billion contract with Meta Platforms. CoreWeave has partnerships with Microsoft, Meta Platforms and Anthropic.

Nebius reported $399 million in first-quarter revenue, a 684% increase from the same quarter a year earlier. Analysts project Nebius revenue of about $3.4 billion for the current year and roughly $11.2 billion for the next year.

CoreWeave reported $2.07 billion in its most recent results, up from $982 million a year earlier. Analyst estimates put CoreWeave revenue near $12.67 billion for this year and about $24 billion for the next year. The company reported a revenue backlog approaching $100 billion.

Costs tied to equipment are rising. Nebius recorded depreciation and amortization of roughly $210 million, a 332% increase year over year. CoreWeave’s depreciation and amortization expanded to about $1.15 billion, roughly half of its reported revenue. Market participants have noted that current GPU and server purchases can lose value after new hardware releases, increasing depreciation charges.

Both companies increased borrowing to fund capacity buildouts. Nebius’s total debt has topped $9.5 billion, while CoreWeave’s debt has exceeded $25 billion. A substantial portion of those borrowings came through convertible bonds, which can convert into equity over time and increase share count.

Competition for high-performance compute capacity has expanded. Bitcoin-mining firms and specialty data-center operators, including MARA Holdings, Riot Platforms, Cipher Mining, Bitfarms and IREN, have added capacity aimed at similar workloads. Several of those firms are also seeing elevated short interest.

Upcoming quarterly results, capital-spending updates, depreciation trends and any changes to debt or convertible issuance are scheduled in coming weeks and could provide new information for investors assessing revenue trajectories, costs and potential dilution.