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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.

Mike Intrator, Chief Executive Officer and founder of CoreWeave, speaks during the company's Initial Public Offering (IPO) at the Nasdaq headquarters on March 28, 2025 in New York City. (Photo by Michael M. Santiago/Getty Images)
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Overview

  • 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.