CoreWeave Stock Drops Below IPO Price Amid Investor Concerns

The AI cloud provider's stock fell nearly 10% on its second trading day, reflecting market skepticism over its financials and reliance on key customers.

CoreWeave's stock closed at $37.08 on its second trading day, down nearly 10% from its IPO price of $40 per share.
The company raised $1.5 billion in its IPO, significantly below its initial target of $2.7 billion, as shares were priced lower than expected.
CoreWeave's financial sustainability is under scrutiny, with a $7 billion debt burden and heavy reliance on Microsoft, which accounted for 62% of its 2024 revenue.
Despite securing a $12 billion contract with OpenAI, concerns remain about reduced AI spending and the company's dependency on Nvidia GPUs.
CEO Michael Intrator attributed the IPO's scaled-back size to broader market headwinds but expressed optimism about long-term AI infrastructure demand.