Investors who noticed the commentary from Blue Owl Capital (OWL) and CoreWeave (CRWV) sold their shares in a panic.
Blue Owl stock lost 13.45% in the last week. It denied reports that it struggled to find a lender for its ambitious, $4 billion data center development located in Pennsylvania.
CoreWeave CEO Michael Intrator said on CNBC that its data center is financed and is on schedule. He said that it is standard practice for capital allocators to consider a range of financing options. Large-scale infrastructure projects require such considerations.
The drop in OWL and CRWV stock also pulled down shares of Nebius (NBIS). Nebius is executing well on delivering its project deliverables. Still, investors sold NBIS stock on February 12 after the firm posted fourth-quarter results.
Nebius posted a 547% increase Y/Y in revenue, to $227.7 million. Its adjusted net loss increased to -$173 million, compared to -$69 million last year.
Between the hyperscalers and Blue Owl, readers should watch the latter. The stock trades at an inexpensive valuation of 11.4 times forward price-to-earnings. Selling pressure might ease after Cox Capital Partners and Saba Capital offered to take a stake in three of Blue Owl’s private credit funds.
The two firms are offering to acquire shares of Blue Owl Capital Corporation II (OBDC II) at a 20% to 35% discount to their net asset value.
