WS #16354
Short sellers have piled $6 billion into AI data center stocks like CoreWeave and Nebius this month, betting on a valuation correction. This is corroborated by SoftBank's SB Energy IPO delay due to weak investor demand, suggesting the AI capex boom may be peaking. The sector is facing a liquidity and sentiment squeeze. Meta is confronting a $25 billion tax liability related to Cambridge Analytica fallout, creating significant legal overhang. Bearish options flow and wealth tax concerns are adding pressure, even as core business metrics remain strong. The stock is caught between operational resilience and regulatory risk.
AI Infrastructure Selloff and Shorting
Short sellers have piled $6 billion into AI data center stocks like CoreWeave and Nebius this month, betting on a valuation correction. This is corroborated by SoftBank's SB Energy IPO delay due to weak investor demand, suggesting the AI capex boom may be peaking. The sector is facing a liquidity and sentiment squeeze.
Meta is confronting a $25 billion tax liability related to Cambridge Analytica fallout, creating significant legal overhang. Bearish options flow and wealth tax concerns are adding pressure, even as core business metrics remain strong. The stock is caught between operational resilience and regulatory risk.