CoreWeave and Nebius shares fall amid financing concerns

Shares in CoreWeave, Nebius Group, and Applied Digital fell on Friday after investors grew worried about how data centre companies borrow money to pay for their infrastructure.

CoreWeave grew its revenue by 133% last quarter, but it carries more debt relative to its assets than Nebius does. Analysts think CoreWeave stock could rise 43% over the next twelve months, while Nebius could rise 67%.

One concern is circular financing. Nvidia has invested in CoreWeave and also in OpenAI, which buys Nvidia equipment. Critics say these connected financial relationships are hard to evaluate.