CoreWeave Plummets -7% After Massive $1.5 Billion Post-IPO Collapse…

Well, CoreWeave came out swinging like it was still the golden age of AI and free money. It IPO’d Friday in what was supposed to be a glorious return of big tech debuts—$1.5 billion raised, Nvidia in its corner, and a prospectus that read like ChatGPT wrote in on a cocaine bender—but then, Monday happened. Aaaaand now, it’s gone. 

(Source: Giphy) 

The stock closed down -7% yesterday. After managing to limp across the finish line on Day 1—closing exactly at its $40 IPO price—it got curb-stomped on Day 2, dropping below where it opened. Currently trading under $39, CoreWeave is now about as beaten up as my savings is after trying my hand at trading memecoins LOL. 

Now to be fair, this was the biggest tech IPO since UiPath in 2021. It was supposed to be a vibe shift. It was supposed to signal that the IPO drought was finally over. Instead, it confirmed what most of us already suspected—investors are still allergic to anything that smells like “growth story, no profits.” And CoreWeave? Yeah, they’ve got a story alright. 

(Source: CNBC) 

The company started life as “Atlantic Crypto,” which already sounds like something you’d find listed under “Rug Pulls of 2018.” They pivoted from mining Ethereum (RIP) to renting out high-end Nvidia GPUs to AI companies like Meta, IBM, and Microsoft—who, by the way, now accounts for more than 60% of their revenue. Also, just for fun: they lost $863 million last year. Which, if you’re keeping track, is nearly half their revenue.

But here’s what really happened with the IPO. CoreWeave originally wanted to sell 49 million shares at $47–$55. Instead, they slashed it to 37.5 million shares at $40. CEO Mike Intrator tried to spin it on CNBC, saying, “We definitely had to right-size the transaction for where the buying interest was.” Translation: the smart money ghosted them and retail didn’t show up either. Even ARK bought in—because of course they did—but 400,000 shares from Cathie Wood isn’t going to save you when the entire Nasdaq is having a panic attack over tariffs and Trump 2.0.

(Source: Giphy) 

In the end, despite building one of the most anticipated AI infrastructure plays with Nvidia’s blessing, the market collectively told CoreWeave to touch grass in less than 48 (market hours) of their IPO. Could it be the fact that CoreWeave is at its heart a crypto miner with one oversized customer, with new slick branding of GPU buzzwords that’s still bleeding cash? Yes Maybe. 

Regardless of what scared retail traders and Wall Street yesterday, this could become another  torchbearer for Klarna, StubHub, and the rest of the “we swear we’re ready for public markets now” crowd going forward. Of course, only time will tell if the IPO machine has actually revived or not (if nothing else, we still have Newsmax), but for now, CoreWeave just got steamrolled. And it’ll be interesting to see how today and the rest of this week plays out for the GPU wrapper. 

In the meantime, place your bets accordingly, and as always, stay safe and stay frosty! Until next time…

P.S. If you’re tired of missing out on plays like this, maybe it’s time to join Stocks.News Premium. You’ll get trade alerts like this twice a week, plus our Insider Trading Tool that tracks everyone from overpaid CEOs to your favorite Congress members cashing in on their "foresight." Oh, and unlike Bloomberg, we don’t charge a small fortune for the privilege. They might have fancy terminals, but do they deliver breaking trade alerts and tools that actually move the needle? Didn’t think so. Go here to become a Stocks.News premium member now.

Stocks.News holds positions in Meta and Microsoft as mentioned in the article.