Why Did CoreWeave Plunge 11.99%?

On April 3, 2025, CoreWeave's stock experienced a significant drop of 11.99% in pre-market trading, marking a notable decline in its share price.

CoreWeave, an artificial intelligence startup, has seen a rollercoaster journey since its initial public offering (IPO). The company's shares initially dropped slightly by 0.5% upon their Nasdaq debut, finalizing the IPO at $40. However, the stock later surged nearly 42% on its third day of trading, closing at $52.57. This significant recovery came after a disappointing second day of trading, where the stock declined by 7%.

The volatility in CoreWeave's stock price can be attributed to various factors, including market sentiment towards AI stocks and the company's performance post-IPO. Despite the initial lackluster debut, CoreWeave's shares have shown resilience, recovering above their IPO price and indicating potential interest from investors.