Yahoo Finance
2 min read
It should never cease to amaze the power of the world’s richest person Elon Musk to move a stock or sector with a single word.
Recall, a week ago the rise in yields on CoreWeave’s (CRWV) bonds spurred Musk to post “Yikes” on X in response to a post by venture capitalist Chamath Palihapitiya. You never want to see Musk say “yikes” on anything related to CoreWeave — or anything more broadly.
The word helped fuel a rout in shares of CoreWeave and other neocloud stocks such as Nebius (NBIS).
Musk was back on SpaceX’s (SPCX) earnings call late Tuesday with a different word, a bone thrown to the neocloud bulls if you will: “ridiculous.” That is, talk of excess capacity on the AI infrastructure front is ridiculous given the demand being seen for the tech.
“It is ridiculous. I do not think we are going to have a demand issue here. I am not saying this will happen, it is not impossible that we will have a six-month payback period for compute next year,” Musk said.
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At close: October 20 at 4:00:01 PM EDT
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Pre-Market: 7:22:42 AM EDT
Shares of CoreWeave gained 2% in pre-market trading on Wednesday amid Musk’s more upbeat tone, with Nebius up 2%. IREN Limited (IREN) advanced 3%.
SpaceX delivered a solid third-quarter earnings report.
Revenue of $14.58 billion grew 161% from the prior year and beat analyst estimates of $12.7 billion. EPS of $0.35 clocked in $0.20 ahead of analyst forecasts.
The company’s Space, Connectivity and Superintelligence businesses all grew revenue year over year.
“I walked away feeling there is momentum at least through 2027 in terms of demand and that feels longer than the market’s current perception. This my be one step forward in a series of important upcoming AI-related catalysts,” 22V Research analyst Dauvin Peterson said. “Neoclouds will earn a position in this debate on both sides of the house. First, the bullish market pricing commentary and the tighter-for-longer commentary should bode well for neoclouds that are similarly building on Nvidia compute into 2027 and beyond and which can demonstrate the capability to also access a strong pricing environment.”
Brian Sozzi is Yahoo Finance’s Executive Editor, host of the Sozzi Unleashed morning show and the Power Players with Brian Sozzi podcast, and a member of Yahoo Finance’s editorial leadership team.
