Overview

• CoreWeave's stock rose by more than 12% to $44 on its third trading day after initially falling below its IPO price of $40.
• The company's IPO, the largest U.S. tech IPO since 2021, was downsized due to weak investor demand and priced below its initial target range.
• Investor confidence was bolstered by OpenAI's $40 billion funding round, which highlighted continued optimism in the AI sector.
• CoreWeave faces significant financial risks, reporting a $863 million net loss in 2024 and relying on Microsoft for 62% of its revenue.
• The company competes with major tech firms like Amazon, Google, and Oracle, as well as emerging players such as China's DeepSeek.