CoreWeave and Nebius Group: Two Neoclouds Diverge After Q3 Earnings

CoreWeave and Nebius Group, two leading neocloud providers, saw sharply divergent investor reactions to their third-quarter earnings reports, with CoreWeave's stock surging 25% while Nebius shares fell 16%. CoreWeave reported revenue of $3.66 billion, up 168% year over year, beating analyst estimates, and raised its full-year revenue forecast to $13.15 billion. The company also highlighted $9 billion in upcoming customer prepayments and a reduced weighted average cost of debt at 7.9%. Nebius Group posted revenue of $981 million, up 571%, also beating expectations, but lowered its full-year outlook to the lower end of its range and increased capital expenditure guidance to $27 billion. The contrasting outcomes reflect CoreWeave's stronger execution and more attractive valuation at 3 times sales versus Nebius's 22 times.