Shares of CoreWeave (CRWV) opened at $39 apiece during the company’s debut on Nasdaq on Friday afternoon, just under its initial public offering which closed Thursday evening.
The cloud computing firm had sold roughly 37.5 million shares at $40 each, raising about $1.5 billion for its initial public offering (IPO), making it the largest tech offering since 2021. It had, however, initially planned to file the offering at $47 to $55 a share at a much higher valuation than it ultimately saw.
Nvidia, an early investor in the company, placed a $250 million order in the offering, highlighting strong interest from reputable players in the tech industry.
However, some experts had speculated that the stock’s debut wouldn’t see the success it had hoped for. Bloomberg Opinion U.S. technology columnist Dave Lee pointed out potential concerns such as the company’s substantial debt, reliance on a limited number of large customers, and a lack of revenue diversity. Lee stated, “CoreWeave stands to be a bellwether for the AI industry as a whole — a must-watch stock as questions about return on investment grow ever louder.” He emphasized that any sign of uncertainty regarding the belief in AI could lead to significant investor reactions.
The current risk-off environment, influenced by broader macroeconomic conditions in the U.S. — including recent tariffs imposed by the administration — has further contributed to selling pressures in tech stocks, potentially affecting CoreWeave’s IPO performance.
As CoreWeave embarks on its journey as a publicly traded company, the market will undoubtedly keep a close eye on its performance and how it navigates the challenges ahead. With the tech sector facing heightened scrutiny and volatility, CoreWeave’s position will be critical as a potential indicator of the future trajectory of the AI industry.
