DigitalOcean and Nebius both reported Q2 2026 results: DigitalOcean grew revenue 28.6% and generated $60.59 million in free cash flow, while Nebius grew revenue 454.0% while spending heavily on data centers. DigitalOcean's inference business grew nearly 800% and makes up more than 70% of AI customer ARR, and its pro forma net leverage is 0.7 times after retiring about $472 million of convertible notes. Nebius's first-half capex of $8.13 billion far exceeded $4.50 billion in operating cash flow, so it raised $4.34 billion in convertible securities and $2.0 billion through NVIDIA warrants, and interest expense rose to $119.1 million from $4.8 million. The author says Nebius offers a bigger opportunity but carries greater dilution risk, while DigitalOcean's self-funded growth looks more durable. Both stocks have fallen more than 23% in a month.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Nebiuscloud computingdata centers
Open a keyword to see other news on the same topic.
Related news
- Investors are questioning neoclouds' business model but Nebius says AI computing prices are rising
Nebius sees AI computing prices rising more than expected, chief revenue officer Marc Boroditsky told CNBC, as investors question the neocloud business model after CoreWeave's borrowing costs spiked. He said Nebius is not carrying the debt CoreWeave has, that its 2027 capacity would sell out if brought online, and that a Tuesday auction showed continued price increases. Crusoe CEO Chase Lochmiller said prices for older Nvidia chips such as A100s and H100s are higher than when they were first deployed. Nebius shares rose after SpaceX reported its AI business revenue jumped to $7.56 billion, with its CFO saying pricing is tracking slightly above the high end of the $30 to $50 per watt range.
- Nebius Less Exposed To AI Cloud Debt Concerns, Says CRO Marc Boroditsky — Piper Sandler Cuts Target 22%
Nebius Group (NBIS) Chief Revenue Officer Marc Boroditsky told CNBC at Nvidia's GTC Berlin conference that the company's financing model is less exposed to market pressure than other AI cloud providers, amid investor worries about debt-funded infrastructure. He said Nebius relies mainly on equity raises, convertible offerings and upfront customer payments, and that demand for AI computing capacity continues to outstrip supply. Piper Sandler cut its NBIS price target 22% to $185 from $237 while keeping a 'Neutral' rating, and described financing concerns around CoreWeave as overblown. Nebius has completed a $5.75 billion convertible senior notes offering in August and $775 million in its first secured debt financing in July. NBIS stock has surged over 90% so far in 2026.
- Nebius brings compute pricing into the open as Europe AI builders scale on its cloud
Nebius (Nasdaq: NBIS) has launched public live spot pricing for its GPU compute, giving customers greater visibility and control over AI compute costs. The company is also broadening its pricing options, which include reserve auctions for defined capacity blocks and pay-as-you-go access, and is piloting a capacity-rebate program that lets customers recover value by releasing idle GPUs back into the spot pool. Alongside NVIDIA, Nebius is expanding its AI Builder Program to Europe, with a capacity footprint currently spanning Finland, France, the UK, Spain, Estonia and Iceland. Customers such as Black Forest Labs, Advanced Machine Intelligence, Photoroom, Prima Mente and Prosus are using Nebius infrastructure to train and run AI models.
- Is Nebius a Millionaire-Maker Stock?
Nebius (NBIS) more than quadrupled its share price within a year but has pulled back recently as investors rotated out of AI stocks. Q2 2026 revenue reached $582.3 million, up 454% year over year, with annualized run-rate revenue (ARR) of $3 billion at the end of June and management expecting $7 billion to $9 billion this year, supported by over $40 billion in customer commitments. However, about 98% of revenue comes from AI cloud sales, and Q2 capital expenditures of $5.7 billion were nearly 10 times that quarter's revenue. The stock still trades at about 34 times trailing sales as of Oct. 19. The author says a 100-fold gain would require market cap to rise from $46 billion to $4.6 trillion, which is highly unlikely, though the stock may still suit investors seeking explosive growth who accept volatility.
- CoreWeave Falls 4% as HSBC Reiterates Bearish Call on Debt Risk; Nebius Drops 5%, Oracle Holds Steady
CoreWeave (CRWV) fell 4% to $58.67 and Nebius (NBIS) dropped 5% to $162.20 in morning trading, while Oracle (ORCL) edged down 0.52% to $128.95. HSBC repeated its Reduce rating on CoreWeave, and the pressure is concentrated in debt-funded AI cloud providers as borrowing costs rise, with Nebius falling further than CoreWeave even though the note named only CoreWeave. CoreWeave touched a new one-year low on Monday, and its bond yields and credit default swap pricing are at distressed levels. The First Trust Cloud Computing ETF (SKYY) was unchanged at $161.08, and the Invesco QQQ Trust (QQQ) fell 0.75% to $712.98, indicating the damage is contained.
- Social Buzz: Wallstreetbets Stocks Mostly Lower Premarket Tuesday; CoreWeave, Nebius Group to Decline
Related markets
Latest news
- Bank Profits Surge
The 9-month 2026 results show many banks continued to grow profits, with some posting record quarterly earnings. VPBank's pre-tax profit reached nearly VND 30,000 billion, up nearly 47%, equal to its full-year 2025 result and about 72.4% of its 2026 plan; Q3 pre-tax profit topped VND 11,000 billion. Techcombank posted VND 28,900 billion (up 23.7%), while LPBank reported VND 10,421 billion (up nearly 9%). SSI forecasts pre-tax profit of its monitored banks to rise 19.5% in 2026 before slowing to 15.4% in 2027, pressured by narrowing net interest margins and rising credit risk provisions. It also expects system-wide credit growth of 16-17% in 2027 and 17.9% for the monitored banks.
- World's Largest Gold Fund Dumps Over 10 Tonnes of Gold as Prices Slide
SPDR Gold Trust, the world's largest gold fund, continued net selling of nearly 12 tonnes of gold in the 22/10 session, bringing total sales over 2 sessions to nearly 15 tonnes and cutting its holdings to about 1,046 tonnes. Spot gold fell more than 2.8% to around USD 4,025 per ounce at the close of 22/10, and briefly dipped below USD 4,000 per ounce in the morning session of 23/10. Tensions in the Middle East pushed crude oil prices higher, raising concerns about inflation and further Fed tightening, and gold has still not attracted sustained safe-haven demand even as US Treasury yields fell. US September CPI rose 0.6% month on month and 3.7% year on year, while PPI rose 1.3% and 6.3%. Markets price about an 84% chance the Fed holds rates steady at its 27-28/10 meeting and a 16% chance of a 25 basis-point increase; September PCE data due on 29/10 is the next key factor to watch.
- Gold Prices Continue to Fall
On the morning of 23/10, domestic gold prices kept falling, with SJC bar prices varying by seller and the premium over world gold widening. Công ty TNHH Vàng bạc đá quý Sài Gòn listed SJC bars at VND 139-142 million per tael (buy-sell), down VND 300,000; Phú Quý was at VND 138-141.8 million, down VND 500,000; and Mi Hồng at VND 140-141.5 million, down VND 800,000. Gold rings also fell by varying amounts, with DOJI at VND 138-142 million and Phú Quý at VND 138-141 million per tael. World gold dropped USD 129 to around USD 3,992 per ounce, equal to about VND 125.3 million per tael, leaving SJC bars about VND 16.7 million per tael above the world price. The State Bank's central rate was set at 25,627 VND/USD, down 5 dong, while Vietcombank quoted 25,660-26,040 VND/USD (buy-sell).
- Company Linked to Billionaire Pham Nhat Vuong Announces Major Good News
VEFAC (ticker VEF), a Vingroup subsidiary, posted Q3 net revenue of nearly VND 77 billion, up 67% year on year, but a gross loss of about VND 27 billion as cost of sales from its exhibition business exceeded revenue. Q3 profit rose mainly thanks to a gross gain of about VND 65 billion from transferring some schools in a project to a partner, while financial income reached over VND 388 billion, mostly from loan and investment income. For the first nine months of 2026, after-tax profit was nearly VND 865 billion, down about 94% from VND 15,418 billion in the same period of 2025, as the prior year included large gains from transferring part of the Vinhomes Global Gate project. As of 30/9/2026, total assets stood at over VND 31,905 billion, up 36% from the start of the year, while total liabilities exceeded VND 24,364 billion, with short-term customer advances rising from VND 411 billion to over VND 8,373 billion.
- Lotte and Phat Dat Officially Break Ground on VND 60,000 Billion Mega Project in Thu Thiem 'Golden Land'
A joint venture between Lotte Group (South Korea) and Phát Đạt (HoSE: PDR) officially broke ground on 23/10 on Lotte Eco Smart City Thu Thiem in the Thu Thiem New Urban Area, HCMC, with total investment of about VND 60,000 billion. The project covers nearly 7.5 ha and will combine Grade A offices, retail, services, accommodation and housing, adjoining the central plaza and central lake of Thu Thiem. Phát Đạt holds 35% of Lotte Properties HCMC, the project developer, and will develop the housing blocks along with two towers (2-1 and 2-3) with about 219,722 m2 of floor area, while Lotte handles block 2-5. Lotte Properties HCMC paid VND 17,569 billion in land-use fees on 31/7/2026, and Phát Đạt completed its VND 7,666 billion payment to take its 35% stake. MB is funding all of Phát Đạt's capital contribution, while VietinBank and BIDV also support the project.
- International Business : Global stocks nosedive as Meta dents AI optimism
Global stocks retreated as tech earnings failed to ease concerns about the AI outlook, with MSCI's All-World index set for its largest daily fall in two weeks, down 0.4 per cent. Meta beat third-quarter revenue expectations, but its plan to issue non-voting stock revived worries about its mounting capital commitments, and a New Mexico judge ordered it to pay a $25 billion penalty in a data privacy case. Brent crude rose nearly 3% to $112 a barrel, near a five-month high, after more Houthi attacks in Saudi Arabia raised supply risks. Investors moved into government bonds, pushing the US 10-year yield down to 5.05%, below France's for the first time in 13 years, while French yields have climbed above 5% amid concerns over social unrest and debt. The France-Germany 10-year spread reached 177.7 basis points, its widest since 2011, while gold fell 1.8% to $4,070 an ounce.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.