CoreWeave stock plunges 15% as traders bet on more neocloud declines

Shares of neocloud companies plunged Wednesday as debt yields for Nvidia-backed CoreWeave hit new highs, with traders betting on further declines. CoreWeave stock fell 15%, while Nebius Group and Iren dropped up to 10%. Options volume in CoreWeave surged to over seven times its 30-day average, with traders buying nearly 200,000 puts versus 106,000 calls. A notable trade involved 26,000 December puts at a $37.50 strike price, requiring a 42% further drop to pay off. CoreWeave, which IPO'd in March 2025 at $40 per share, faces concerns over a private credit bubble, as highlighted by Social Capital's Chamath Palihapitiya and Elon Musk's "yikes" response. The puts may serve as hedges for correlated stock or index exposure.