CRWV Crashes 14% Post-Q3 Beat—Nebius & IREN Dragged Down Too: What’s Spooking Investors?
CoreWeave stock (CRWV) just got punished despite beating Q3 estimates—plunging 14% in a brutal market slap. Nebius and IREN got caught in the downdraft too. Here’s the ugly truth Wall Street won’t say out loud.
‘Beat and Drop’ Syndrome Strikes Again
Another earnings ‘win’ met with a selloff—because markets now reward pessimism over performance. CRWV’s numbers looked solid, but traders smelled blood in the AI infrastructure sector.
The Bearish Domino Effect
When hyperscalers sneeze, niche players catch pneumonia. Nebius and IREN got crushed alongside CRWV—proof that ‘sector rotation’ is just code for ‘panic selling dressed up as strategy.’
Closing Thought: The Market’s Schizophrenic Mood
One day it’s ‘growth at any price,’ the next it’s ‘profitability or death.’ CRWV’s plunge exposes the absurd whipsaw logic of modern trading desks—where algorithms panic faster than humans ever could.
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This comes as Wall Street analysts issued a flurry of price target cuts on CRWV stock despite its third-quarter fiscal year 2025 results that surpassed Wall Street’s estimates. Its revenue more than doubled to reach $1.366 billion.
Wall Street Goes Bearish on CoreWeave
Despite beating analysts’ estimates, CoreWeave trimmed its fourth-quarter revenue guidance from $5.25 billion to $5.15 billion, noting that it was facing problems in securing sufficient compute power.
The neo-cloud provider also noted that a major third-party builder was late in delivering the necessary capacity, hindering its ability to bring certain projects online earlier. Reacting to the results, D.A. Davidson analyst Gil Luria reiterated his Sell rating on CRWV stock, pointing to “deteriorating profitability” and several other problems facing the data center company.
Why are Neo-Cloud Stocks Falling?
However, CoreWeave is not alone. The shares of its rivals Nebius (NBIS) and IREN Limited (IREN) also dropped — although their declines were less severe than CoreWeave’s.
Earlier in the day, Nebius’s shares ROSE as much as 5% after it was revealed that it had signed a five-year contract with Meta Platforms (META) to deliver AI infrastructural capacity to the American tech major. The Amsterdam-based company also saw its third-quarter results grow by over 355% year-over-year, reaching $146.1 million.
However, Nebius shares fell almost 4% as of 12:52 p.m. on Tuesday, even as the company continues to inch closer towards profitability. During the recent quarter, the company’s adjusted net losses shrank from $100.4 million a year to $39.7 million.
Similarly, IREN Limited’s shares tumbled over 4% during the same period on Tuesday. Unlike Nebius, IREN has managed to turn last year’s loss into a profit. It reported an earnings per share of $1.07 in its third-quarter results released last Thursday.
During the same quarter a year ago, the Sydney-based company had reported a loss of 27 cents per share. However, IREN stock continues to fall as analysts debate the rewards and risks that come with its recent $9.7 billion deal with Microsoft (MSFT).
What Are the Best Neocloud Stocks to Buy?
Neo-cloud companies such as CoreWeave, Nebius, and IREN continue to grab Big Tech and Wall Street’s attention, making them compelling stock picks. The TipRanks Stock Comparison tool helps investors decide which one stands out right now. Kindly refer to the graphics below.
