CRWV, NBIS, IREN — Oracle’s Q2 Earnings Selloff Hit Neocloud Stocks

Shares of AI cloud capacity providers CoreWeave (CRWV), Nebius (NBIS), and IREN Limited (IREN) all fell during the first hour of trading on Thursday.

This came after rival Oracle’s (ORCL) Q2 2026 earnings results raised investor concerns about its AI cloud spending. ORCL plunged about 15% on Thursday morning.

During the quarter, Oracle’s sales rose 14% from a year ago to $16.1 billion, driven by the Texas-based company’s Cloud Revenue segment. However, the sales figure fell short of Wall Street’s consensus of $16.2 billion. In contrast, the EPS rose by approximately 54% from $1.47 seen last year to $2.26, comfortably topping the consensus estimate of $1.64.

How Are Neocloud Stocks Performing Today?

Reacting to the move, the neocloud stocks — which compete with larger and better-established Oracle — fell, as follows, as of 10:14 a.m. EST on Thursday:

• CoreWeave (CRWV) dropped by 6.18% to $82.71
• Nebius (NBIS) tumbled by 3.72% to $90.11
• IREN (IREN) shed 4.1% off to reach $42.12

Market Reacts to Oracle’s Mixed Quarterly Results

Apart from these neocloud stocks, Oracle’s earnings results have also sent ripples across other sections of the financial market. Wall Street analysts have started to revise their ORCL price targets downwards, pointing to the concern about near-term profitability due to the software giant’s rising capital expenditure.

Shares of AI chip makers such as Nvidia (NVIDIA), Broadcom (AVGO), and Advanced Micro Devices (AMD) fell after the result was released. In addition, U.S. stock futures were mixed on Thursday morning, as the Federal Reserve’s 25-basis-point rate cut was counterbalanced by the market’s reaction to Oracle’s latest quarterly results.

Where are Neocloud Stocks Headed in 2026?

In contrast to the effect of Oracle’s results, Nvidia’s recent blockbuster Q3 2025 earnings result helped to pull the neocloud providers’ stocks out of their post-earnings rut. However, the momentum was short-lived.

Meanwhile, recent events, such as CoreWeave’s $2.25 billion debt offering, show that the stock is likely to continue to attract investor interest heading into 2026. Moreover, analysts continue to express bullish views on Nebius for next year, with one adding that IREN’s shares would “course correct” in 2026-2027.

What Are the Best AI Stocks to Buy?

Using the TipRanks Stock Comparison tool, investors can assess how the AI and AI-related stocks in this article compare based on Wall Street analysts’ ratings. Kindly refer to the image below.

Read more about these AI and cloud stocks here.