Futurum Group CEO Daniel Newman urged AI cloud CEOs to buy shares personally, arguing open-market purchases can demonstrate conviction.
Newman took to X on Wednesday and stated that CEOs of CoreWeave Inc. (NASDAQ:CRWV) and IREN Ltd. (NASDAQ:IREN) should make “a meaningful buy in the open market.” He specifically referenced CoreWeave CEO Michael Intrator and IREN CEO Daniel Roberts, saying purchases made with personal funds would provide investors with a stronger signal of leadership confidence.
He pointed to Palo Alto Networks Inc. (NASDAQ:PANW) CEO Nikesh Arora, who bought about $10 million in shares at about $147 during March 2026. Newman also lauded Bill McDermott, CEO of ServiceNow Inc. (NYSE:NOW), for the same reason.
“Grown up moves showing strong conviction,” Newman wrote, adding that CEO purchases can represent “a real signal of belief” for investors in these neoclouds.
CoreWeave Faces Debt and AI Spending Risks
Newman’s comments came as CoreWeave shares fell 15.46% to $65.78 in Wednesday’s regular session and declined another 5.93% to $61.88 in after-hours trading. D.A. Davidson analyst Gil Luria warned that the AI cloud provider’s equity could be wiped out if AI spending slows, citing its borrowing costs of about 9% versus roughly 1% returns on investments. The stock fell about 5.50% premarket on Thursday.
Meanwhile, CoreWeave co-founder Brannin McBee defended the company’s financing strategy, saying it is seeking cheaper funding from insurers and that its heavy spending reflects expansion. The company’s debt and lease obligations totaled nearly $52 billion at the end of June, while second-quarter net interest expense rose to $640 million from $267 million a year earlier.
At the same time, Iren’s shares also fell Wednesday as rising CoreWeave bond yields fueled concerns about AI financing, while hotter-than-expected inflation pressured rate-sensitive stocks. Venture capitalist Chamath Palihapitiya pointed out that CoreWeave’s 2032 bond yield briefly hit 15% before closing at a record 14.5%, intensifying worries about funding risks among AI-focused cloud providers.
CEOs Signal Confidence With Stock Trades
At the end of March, Palo Alto Networks CEO Nikesh Arora disclosed his first stock purchase since November 2019, buying 68,085 shares worth about $10 million, offering a rare sign of insider confidence after a sharp cybersecurity stock selloff. JPMorgan analyst Brian Essex said insider transactions can offer insights into demand, customer spending, and platform traction. He noted that a $10 million open-market purchase signaled the CEO’s confidence in AI’s resilience and future growth despite concerns about AI disruption.
At the same time, CEO McDermott purchased 28,680 ServiceNow shares worth approximately $3 million on February 27, 2026. The purchase was filed on March 2.
On the contrary, CoreWeave CEO Michael Intrator sold 200,000 shares on Sept. 22 across five transactions, at prices ranging from $85.57 to $88.95 per share, according to an SEC Form 4 filing.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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