Morningstar analysts, however, said Nebius’ high valuation may hold, but a slowdown in AI spending could hinder its ability to attract new capital and sustain growth.
- CRWV dropped 3.8% in Thursday’s premarket session while NBIS declined 2.6%.
- Morningstar raised its price target on CRWV to $115 from $106 and its target on NBIS to $150 from $120.
- Stocktwits sentiment for CRWV and NBIS was ‘extremely bullish.’
Shares of CoreWeave and Nebius operators declined in premarket trading on Thursday after eye-popping gains in the previous session following their upbeat quarterly results.
CRWV dropped 3.8%, and NBIS declined 2.6%. They gained 19.3% and 34.1%, respectively, in Wednesday’s session.
Analysts responded with broadly bullish commentary on neocloud operators, though at least one flagged risks surrounding Nebius.
“Nebius’ thesis shows reflexive elements because its valuation partially shapes its fundamentals. A high share price is a platform for future growth with less dilution, faster buildouts, and stronger investor sentiment, Morningstar analysts said in an investor note.
“But if sentiment weakens the loop can reverse— cost of capital raises, dilution increases, and fundamentals might deteriorate. Nebius needs to maintain a high share price to keep growing, and an AI spending slowdown would hinder its ability to attract new capital and grow.”
Nebius is an emerging neocloud provider, which has been on a growth spurt on the back of new contract wins and expansion of its data centers. That helped NBIS stock more than triple over the past year.
On CoreWeave, Morningstar said, “better customer diversity and positive managed software traction both point to stronger fundamentals for CoreWeave,” adding that strong cloud demand and a stable financing pipeline should allow the company to reach its target capacity of 1.85 GW by the end of 2026 and 3 GW by the end of 2027.
The research firm raised its price target on CRWV to $115 from $106 and its target on NBIS to $150 from $120.
Neocloud Results Recap
CoreWeave’s second-quarter revenue increased 112% to $2.58 billion, surpassing analysts’ estimates of $2.56 billion. Adjusted loss per share of $1.03 was below the $1.20 per share target.
The company’s sales backlog – or future sales from recurring customers – reached $104 billion, nearly doubling the order book it reported in November.
Subsequently, CoreWeave raised its full-year 2026 guidance. The company expects revenue between $12.4 billion and $13.2 billion, up from its May projection of $12 billion to $13 billion.
It also raised its full-year capital expenditure target to a range of $35 billion to $39 billion, compared to its previous expectation of $31 billion to $35 billion.
Nebius posted $582 million in revenue, up 454% from the prior year and comfortably ahead of Wall Street’s call for $570 million. Revenue tied to the company’s core AI cloud business increased sixfold to $575 million.
The company reported a loss of $0.68 per share in Q2, compared to earnings per share (EPS) of $2.05 during the same period a year ago.
On Stocktwits, the retail sentiment for both NBIS and CRWV was ‘extremely bullish’ on Thursday.
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