The cloud is a computer you rent from someone else. A neocloud is that, but the someone else owes more money.
,CoreWeave, Nebius and IREN all dropped over 30% during October., Thirty percent. In one month. For companies whose entire pitch was "we have the chips."
,CoreWeave's credit default swap spreads widened past 11%, and its 2031 and 2032 unsecured notes yielded over 15%., That is not a bond yield. That is a bar tab with a prospectus.
The chart shows a series of lower highs. I could have told you that without reading the Fed minutes, the earnings calls, or anything written by a man named Chad on a podcast.
Then Solidigm left. ,SK Hynix scrapped a potential $10 billion US listing after opposition from regulators and shareholders., ,The company cited capital market conditions., Translation: nobody RSVP'd.
Goldman Sachs and Morgan Stanley had been ,tapped to lead the debut., Two of the most expensive firms in finance, hired to throw a party the guest of honor's own shareholders opposed. Somewhere a banker is billing for the cancellation.
Meta added to the mood. ,Meta turned cash flow negative., The company that renamed itself after a virtual world now spends money faster than it makes it. On brand.
Hyperscaler earnings arrive next. ,Alphabet fell 6% ahead of its third-quarter report., Wall Street will listen to executives explain that the spending is fine. The executives will say "disciplined." Retail traders will buy the dip in a company that is the dip.
You own CoreWeave calls, don't you. You read "AI infrastructure" and pictured a wizard. It is a warehouse full of space heaters with a credit problem.
Your portfolio isn't diversified. It's one bad idea wearing four ticker symbols.
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