A single tweet about bond yields appeared to wipe 15% off the share price of neocloud CoreWeave on Wednesday, with a knock-on effect across the sector and on other big borrowers in the AI space, including Oracle.
A post on X by venture capitalist Chamath Palihapitiya with a chart showing CoreWeave’s 2032 bond yield touching 15% for the first time was boosted by SpaceX CEO Elon Musk commenting “yikes”, before stocks started to fall.
CoreWeave, which has debt obligations above $50 billion after borrowing heavily to build new data centres, saw its share price drop 15.46% during trading on Wednesday, while competitors Nebius, Core Scientific, and DigitalOcean dropped 10%, 12.44%, and 14.76%, respectively.
The tumble also appeared to extend beyond the neocloud sector, with Oracle, which has accumulated a debt pile of $125 billion after burning billions each quarter to fund data centre investments, also seeing its share price decrease by almost 9%.
