CoreWeave’s initial public offering saw a sharp 68% jump on debut before pulling back amid investor skepticism over its growth sustainability. The cloud infrastructure firm raised $1.3 billion in the offering.
- CoreWeave IPO opened 68% above offering price of $15.10
- $1.3 billion raised in capital via the public offering
- Post-IPO valuation stands at $24.8 billion
- Forward revenue multiple of 86x, significantly above sector average
- Revenue grew to $287 million over the past 12 months
- Gross margin declined from 47% to 39% year-over-year
CoreWeave's highly anticipated IPO surged 68% in early trading, closing at $25.40 per share following an initial price of $15.10. The company, which operates AI-optimized data centers, raised $1.3 billion in capital through the offering, marking one of the largest tech debuts of 2026. Trading volume exceeded 27 million shares, signaling strong institutional and retail interest. Despite the explosive opening, the stock retreated by 14% by mid-afternoon as analysts questioned the sustainability of CoreWeave’s revenue growth amid increasing competition in the AI infrastructure space. The firm reported $287 million in revenue for the trailing 12 months, with gross margins compressing to 39% from 47% a year prior—raising concerns about pricing power and long-term profitability. Market participants noted that CoreWeave’s valuation reached $24.8 billion post-IPO, implying a forward revenue multiple of 86x, well above the sector average. Comparable companies like Lambda Labs and Vast Data trade at multiples below 30x, suggesting potential overvaluation if growth fails to materialize. The pullback affected related ETFs and tech stocks, with the Nasdaq Composite dipping 0.5% on broader sell-side caution. Investors are now scrutinizing whether CoreWeave can maintain its current pace of expansion given rising capital demands and shifting AI compute demand dynamics.