CoreWeave Climbs 0.47% on $5.2B Volume, Ranks 15th as Lockup Expiry Fuels Sell-Off

On August 15, 2025, CoreWeave (CRWV) rose 0.47% with a trading volume of $5.2 billion, ranking 15th in market activity. The stock’s recent volatility has been driven by the expiration of its IPO lockup period, which triggered a wave of insider selling. Over 80% of Class A shares became eligible for public sale, intensifying downward pressure. The sell-off followed mixed earnings, where the company reported a wider-than-expected loss despite raising its 2025 revenue forecast. Analysts warn of continued short-term risks as early investors liquidate holdings, potentially expanding the free float and altering market dynamics.

Jim Cramer highlighted CoreWeave’s trajectory, noting its meteoric rise from $40 in March but cautioning about near-term challenges. He emphasized that the stock’s plunge stemmed not from weak demand—AI infrastructure remains robust—but from the sudden influx of shares post-lockup. With underwriters previously limiting supply, the post-expiration deluge has created a “challenging setup,” according to Roundhill CEO Dave Mazza. Citigroup’s Tyler Radke echoed concerns about liquidity pressures but suggested a more liquid float could attract new buyers over time.

CoreWeave continues to invest aggressively in AI infrastructure, allocating up to $23 billion this year to meet surging demand. Its partnership with Microsoft as a key client and a 6.5% stake from Nvidia (its primary AI chip supplier) remain long-term positives. However, execution risks persist, particularly with its all-stock acquisition of Core Scientific pending. Hedge funds like Magnetar and Coatue may gradually offload positions to avoid market panic, while D.A. Davidson’s $36 price target implies over 60% downside from current levels.

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