1226 ET - Traders worried about the performance of neoclouds like CoreWeave and Nebius can breathe a little easier after SpaceX's third-quarter results, Truist analysts write in a note. SpaceX's surging AI revenues are evidence of both "insatiable" compute demand and strong pricing power for compute providers, with payback periods shortening to closer to one year. The pricing tailwind may be larger near-term for Nebius, which typically signs shorter contracts than CoreWeave, but both companies are moving toward shorter contracts to take advantage of the pricing environment. "Despite market concerns around financing, we see tailwinds from both upfront payments and pricing power more than offsetting potential higher rates," the analysts write.
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SpaceX's 3Q Results Seen as Positive for CoreWeave, Nebius
Dow Jones00:26
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