CoreWeave Stock Picks Up Steam After Muted Debut: Retail Still Has Mixed Feelings
CoreWeave’s IPO was marred by weak stock market conditions and the uncertain economic outlook, which forced the company to downsize the size of the public offering to 37.5 million shares from the initially planned 49 million.
FollowCoreWeave, Inc. (CRWV) stock jumped nearly 42% on Tuesday, outperforming the broader market.
Livingston, New Jersey-based CoreWeave’s stock ended Friday’s debut session flat at the initial public offering (IPO) price of $40 and slipped 7.3% on Monday. The weakness came amid the broader market sell-off, as stocks succumbed to fears concerning the impact of President Donald Trump’s tariff measures.
The market rebounded on Tuesday even as the ‘Liberation Day’ tariffs are set to take effect.
CoreWeave’s IPO was marred by weak stock market conditions and the uncertain economic outlook, which forced the company to downsize the size of the public offering to 37.5 million shares from the initially planned 49 million.
The company also priced the offering at $40 apiece, below the expected price range of $45-$55. Yet, the IPO marked the biggest tech offering since 2021.
The lackluster debut by CoreWeave set off worries concerning the IPO market, given a slew of tech companies including Discord, Stripe and Chime are nurturing ambitions for public listing.
After opening Friday’s session at $39, and trading in a $37.46-$41.94 range, CoreWeave stock settled the session at $40.
CoreWeave is a cloud computing platform offering cloud-based data center infrastructure to artificial intelligence (AI) applications. The company's data center is powered by Nvidia Corp.’s (NVDA) latest graphic processing units and it also provides storage and networking services.
On Stocktwits, retail sentiment toward CoreWeave stock improved and yet remained ‘neutral’ (50/100) by the end of Tuesday’s session compared to the ‘bearish’ mood that prevailed a day ago. The message volume on the stream remained ‘extremely high.’
CRWV sentiment and message volume, as of 12:46 am, April 2 | source: Stocktwits
A bullish user remained confident in CoreWeave’s business model of leading AI cloud infrastructure.
But another user shunned the company, calling it a scam as it pivoted from crypto mining to data centers. They also called out the company for its debt load.
A Stocktwits poll that received responses from 1,400 users, found that 39% respondents think the stock will outperform the tech sector. A nearly equal share (38%) expects the stock to lag. A sizable 23% remained on the sidelines, waiting to see how things pan out.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
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