CoreWeave Shares Surge 12%, Rebound Above IPO Price

Mike Intrator, the Chief Executive Officer and founder of CoreWeave, rang the opening bell surrounded by his executive team and family at the company's Initial Public Offering (IPO) held at Nasdaq headquarters in New York City on March 28, 2025.

On Tuesday, CoreWeave shares made a significant recovery, climbing more than 12% as the company sought to bounce back after a challenging second day of trading on public markets.

The shares of the artificial intelligence cloud company, which provides access to Nvidia's high-performance graphics processing units for technology firms, had experienced a decline of over 10% on Monday, dropping below the initial public offering price of $40. The stock began trading at $39 on Friday and finished the day at $40, unchanged from its opening price.

CoreWeave's public debut marked the largest venture-backed tech IPO for a U.S. company since 2021, serving as a notable indicator for the stalled public offering market, which had remained dormant for nearly three years due to rising inflation and interest rates that made tech investments less appealing.

Market Response

There was considerable hope that CoreWeave could signal a revival for IPOs, with several companies like ticket reseller StubHub, Klarna, and Hinge Health planning to enter the market soon. Unfortunately, CoreWeave's tepid performance did little to instill confidence among investors.

The broader market has also faced challenges, primarily driven by macroeconomic uncertainties linked to former President Donald Trump's tariff initiatives. In light of these pressures, CoreWeave had adjusted its offering price downward to $40 from an initial range of $47 to $55, while also reducing the number of shares offered from 49 million to 37.5 million.

In an interview on CNBC's "Squawk Box," CEO Mike Intrator noted that the company had to "scale or rightsize the transaction for where the buying interest was" amidst these macroeconomic headwinds.

CoreWeave, with Microsoft as its largest customer, has a market capitalization near $19 billion. Its main competitors include major players such as Microsoft, Amazon, Google, and Oracle.

According to the prospectus that CoreWeave filed in March, the company reported a net loss of $863 million, even as it experienced a remarkable revenue growth of over 737%, reaching $1.92 billion in the past year.

CoreWeave, IPO, Stocks