Cloud infrastructure providers endured a difficult week as CoreWeave, Nebius and IREN each lost more than 30% in October, while CoreWeave’s credit default swap spreads widened beyond 11% and the yields on its unsecured notes due in 2031 and 2032 exceeded 15%. Outside the United States, Elice Group fell 30% in its market debut and NextDC plunged 39.5% after sharply cutting its annual earnings forecast. Meta’s stock also dropped 7% after the company reported negative free cash flow of more than $2 billion in the third quarter and raised its annual capital expenditure floor to $135 billion. Credit default swap spreads for Meta, Nvidia and Oracle reached record highs of more than 124, 126 and 343 basis points respectively, while Oracle now faces a credit rating downgrade risk. SK Hynix withdrew Solidigm’s planned initial public offering because of market volatility, even as Gartner forecasts that 80% of neocloud companies will either cease operations or be absorbed by 2030.
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