Shares of CoreWeave, an artificial intelligence-focused cloud provider, dropped nearly 10% on Monday, closing well below the company’s initial public offering (IPO) price, CNBC reports.
This decline followed a lackluster market debut on Friday, which saw shares open below their offering price and close flat.
CoreWeave, which sold shares at $40 apiece in its IPO, opened trading on Friday at $39 and ended the day at $40. However, by Monday’s close, shares had fallen to about $37, marking a 7% drop for the session and nearly 10% below the IPO price.
The company’s offering was the largest technology IPO since 2021 and the first major AI-focused firm to go public. CoreWeave initially aimed to raise up to $2.5 billion by pricing shares between $47 and $55, but ultimately downsized the offering to 37.5 million shares from 49 million, raising $1.5 billion instead.
CoreWeave’s weak stock performance reflects broader economic uncertainty and a challenging environment for technology IPOs. The tech-heavy Nasdaq Composite is down more than 10% this year, with investor sentiment dampened by concerns over inflation, interest rates, and trade policies.
“There’s a lot of headwinds in the macro,” CoreWeave CEO Michael Intrator said in an interview on CNBC’s Squawk Box on Friday. “And we definitely had to scale or rightsize the transaction for where the buying interest was.”
Many had hoped that the return of Donald Trump to the presidency would create a more favorable environment for IPOs, but new trade tariffs have added to market volatility, leading some investors to pull back from technology stocks.
CoreWeave rents out access to Nvidia-powered graphics processing units (GPUs) to large tech and AI companies, including Microsoft, Meta, IBM, and Cohere. Microsoft is CoreWeave’s largest customer, accounting for 62% of its revenue in 2024.
The company, originally founded in 2017 as Atlantic Crypto, initially focused on cryptocurrency mining infrastructure before shifting its focus to AI computing. That pivot paid off in terms of revenue growth—CoreWeave reported a staggering 737% increase in revenue last year to $1.92 billion. However, the company is still unprofitable, posting a net loss of $863 million in 2024.
