CoreWeave Stock Plunges Over 51% — Is the AI Cloud Star Losing Its Shine?

CoreWeave (CRWV) stock has had a dramatic ride since its blockbuster debut on Wall Street. After launching its initial public offering (IPO) at $40 per share, CRWV stock surged to a peak of $187, reflecting significant demand for its cloud infrastructure that supports artificial intelligence (AI) technology.

But the euphoria has since cooled. CoreWeave shares have tumbled roughly 51% from their highs. This sharp pullback can be attributed to a combination of factors. The expiration of the company’s post-IPO lock-up period opened the door for insiders and early investors to sell shares, which pressured the stock. Moreover, CoreWeave tempered its near-term growth outlook during the Q3 conference call yesterday and signaled higher spending ahead. The guidance weighed on CRWV stock.