Oracle's dismal guidance is dragging CRWV and IREN
Oracle's (ORCL) second-quarter revenue miss, coupled with a disappointing profit outlook, is sending shockwaves through the tech sector today. With AI overvaluation fears back on, neocloud stocks CoreWeave Inc (NASDAQ:CRWV) and IREN Ltd (NASDAQ:IREN) are suffering the consequences.
CRWV was last seen down 3.1% to trade at $85.46, despite the company's announcement that it will power Runway's next-generation AI video models. Shares have been rebounding since their November multi-month lows, still down 42.5% in the last six months.
IREN is down 2.7% to trade at $42.67, but still sports an astounding 532.3% nine-month lead. The equity has been testing a floor at the $40 level since pulling back from its Nov. 5, record high of $76.87, though the descending 20-day moving average has emerged as pressure.
CRWV and IREN are heavily shorted, with short interest making up 11.1% and 19.7% of their total available floats, respectively. Notably, the former has seen a 32.9% rise in short interest in the last two reporting periods.
Both stocks are seeing affordably priced premium. CRWV's Schaeffer's Volatility Index (SVI) of 90% sits above only 9% of annual readings, while IREN's SVI ranks at the bottom of all readings from the last 12 months.