Microsoft and Alphabet capital spending misses rattle neocloud stocks
Business
CoreWeave and other neocloud stocks slid nearly 5% after Microsoft reported lower-than-expected spending on data centers: $45.2 billion instead of the $50.7 billion analysts hoped for.
Even though that's still a big jump from last year, it left investors wondering if Microsoft's partners can keep up with the demand for more cloud capacity.
Alphabet miss heightens neocloud survival risks
Alphabet (Google's parent company) also missed its capital spending target, adding to worries about the stability of neocloud companies.
With rising interest rates making borrowing pricier, experts are warning that some of these firms might face major shake-ups or even disappear by 2030 as they try to weather this tough economic climate.