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Opendoor Technologies (OPEN) closed at $2.12 on Oct. 16, down 8.84%, after reports of fresh 52-week lows and higher debt costs, on volume of 64.6 million shares, about 53% above its three-month average of 42.1 million. The stock had hit an all-time intraday low of $1.93 on Oct. 15 and has fallen 80% since its 2020 IPO. In the second quarter, revenue fell to $883 million from $1.6 billion in 2025, and the net loss widened to $162 million from $29 million a year earlier, though Opendoor forecast third-quarter sales to grow 20% year over year. Broader markets also slid, with the S&P 500 down 1.09% to 7,659 and the Nasdaq Composite down 2.14% to 26,140, while Zillow Group fell 1.70% to $31.88.
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CoreWeave (CRWV) shares fell 2% in overnight trading after dropping over 15% on Wednesday on concerns about rising debt and the sustainability of its neocloud business, before rebounding 6% on Thursday. Cantor Fitzgerald urged investors to buy the dip, calling the criticism 'a lot of fearmongering,' and reiterated its Overweight rating and $176 price target, a 150% upside from the last close. The firm noted CoreWeave has sold nearly all its capacity coming online for 2027, with Nvidia backstopping any unsold capacity. Nvidia CEO Jensen Huang said CoreWeave's strength 'is improving every day,' while founders have sold $3.3 billion of stock since the IPO but still own about 20%.
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Nebius Group (NASDAQ: NBIS) closed at $165.47 on October 16, 2026, down 12.18%, as a selloff in debt-funded AI cloud stocks spread from CoreWeave (CRWV), which fell nearly 12% on renewed fears about its roughly $50 billion debt load. Reuters linked the sell-off to hotter-than-expected inflation data that raised bets on rate hikes, and no Nebius-specific news was identified as a trigger. The article says comparing the two companies’ balance sheets is premature for now: CoreWeave reported $35.6 billion of total debt as of June 30, while TIKR consensus projects Nebius’s net debt rising from $449.6 million at end-2025 to about $14 billion at end-2026. Nebius trades at roughly 13x next-twelve-month EV/EBITDA, and the mean analyst price target of about $284 implies roughly 71% upside. The article says the pricing of Nebius’s next borrowing will be a key indicator, noting its August convertible notes carried coupons of 0.50% and 4.50%, while CoreWeave’s 2030 bond yields climbed to near 16%.
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The cost of insuring CoreWeave's debt through five-year credit default swaps (CDS) hit a record 1,038 basis points, up 164% year over year, signaling growing investor worry about a possible default. The company carries roughly $51 billion in debt and lease obligations while still posting losses, with a $626 million net loss last quarter versus $290 million a year earlier. Capital spending of $6.4 billion pushed free cash flow to negative $5.7 billion, leaving it dependent on outside funding. Revenue of $2.58 billion more than doubled from a year earlier and its backlog reached $104 billion, but the author argues higher borrowing costs could squeeze the company further, though rising CDS rates do not guarantee a default.
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