2 Neocloud Stocks Sliding After Oracle's Dismal Guidance

Core Viewpoint - Oracle's second-quarter revenue miss and disappointing profit outlook are negatively impacting the tech sector, particularly affecting neocloud stocks like CoreWeave Inc and IREN Ltd due to renewed fears of AI overvaluation [1] Company Summaries CoreWeave Inc (CRWV) - CRWV shares are down 3.1%, trading at $85.46, despite the announcement of powering Runway's next-generation AI video models; the stock is down 42.5% over the last six months [2] - The company has seen a 32.9% rise in short interest in the last two reporting periods, with short interest making up 11.1% of its total available float [3] IREN Ltd (IREN) - IREN shares are down 2.7%, trading at $42.67, but have a remarkable 532.3% gain over the past nine months; the stock has been testing a support level at $40 since a pullback from its record high of $76.87 [3] - Short interest for IREN constitutes 19.7% of its total available float, indicating significant bearish sentiment [3] Market Conditions - Both CRWV and IREN are experiencing high short interest, with CRWV's Schaeffer's Volatility Index (SVI) at 90%, indicating elevated volatility, while IREN's SVI ranks at the bottom of the last 12 months' readings [4]