Shares of top neocloud companies have pulled back this month, mirroring the performance of the largest hyperscalers as investors have continued shorting them. Nebius (NASDAQ:NBIS), IREN (NASDAQ:IREN) and CoreWeave (NASDAQ:CRWV) have dropped by 20%, 33% and 30% from their highest points in May this year.
Investors are Shorting CoreWeave, Nebius, and IREN
Short interest in these companies has continued rising despite their strong revenue growth. Investors have shorted 50.93 million Nebius shares, giving it a short interest of 23.8%. Similarly, CoreWeave and IREN have short interests of 23% and 18%, respectively. This is a sign that investors anticipate these stocks to fall further.
The short positioning is happening despite their strong revenue growth and large orders from companies like Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT) and OpenAI. Meta Platforms entered a $27 billion deal with Nebius earlier this year, while CoreWeave serves nearly all of the top AI companies.
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