CoreWeave Stock Falls After IPO Debut – Market Response & Future Prospects
New York, USA – CoreWeave (CRWV), the AI cloud computing company backed by Nvidia, officially went public on Nasdaq. However, the stock price struggled on its first day of trading, reflecting broader investor uncertainty about AI infrastructure businesses.
CoreWeave IPO Performance & Stock Price
CoreWeave priced its IPO at $40 per share, significantly lower than the expected range of $47 to $55. The company raised $1.5 billion through the offering, achieving a valuation of approximately $22.7 billion on a fully diluted basis. However, the stock opened at $39 per share, briefly climbed to $42, and then declined as trading continued.
Why Did CoreWeave’s Stock Price Drop?
Several factors influenced the lackluster performance of CoreWeave’s stock, including:
- High Dependency on Microsoft: Nearly two-thirds of CoreWeave’s revenue comes from Microsoft, raising concerns about revenue concentration.
- Financial Losses: Despite growing revenue from $16 million in 2022 to $1.9 billion in 2024, CoreWeave reported a net loss of $863.4 million last year.
- Market Conditions: The AI sector, while booming, faces investor skepticism due to increasing competition and high capital expenditures.
Investor Reactions & Analyst Opinions
Market analysts have mixed views on CoreWeave’s future. While some highlight the company’s potential to capitalize on AI cloud computing, others warn that its reliance on a few large customers and its high operating costs pose significant risks.
What’s Next for CoreWeave Stock?
CoreWeave’s performance in the coming weeks will depend on investor confidence and the company’s ability to expand beyond its current customer base. With AI demand growing, CoreWeave has the opportunity to strengthen its market position—if it can reduce losses and diversify revenue sources.
