CoreWeave‘s stock popped nearly 42% on Tuesday, bouncing back above its initial public offering price following a lackluster second trading day on the public markets.
The stock closed $52.57, bringing the company to a nearly $25 billion market capitalization.
Shares of the artificial intelligence cloud company, which rents out access to Nvidia’s graphics processing units to other technology companies, dropped more than 10% on Monday and fell below the initial public offering price of $40. The stock opened at $39 on Friday and closed flat at $40.
CoreWeave opened on the public markets Friday in the biggest venture-backed tech IPO for a U.S. company since 2021. It served as a key test for a public offering market that came to a near standstill about three years ago in the face of high inflation and rising interest rates that shunned technology investors
Many hoped that CoreWeave would usher in a more favorable period for IPOs as companies such as ticket reseller StubHub, Klarna and Hinge Health join a mounting list of names readying in the wings.
CoreWeave’s disappointing performance has failed to lift investor confidence.
Markets have also sold off against a backdrop of macroeconomic uncertainty spurred by President Donald Trump’s tariff agenda. CoreWeave lowered its offering price to $40 last week from an initial expected pricing range of $47 to $55 range. The company also downsized the offering to 37.5 million shares from 49 million.
CEO Mike Intrator told CNBC’s “Squawk Box” on Friday that the company had to “scale or rightsize the transaction for where the buying interest was” against a backdrop of macroeconomic headwinds.
The company counts Microsoft as its largest customer. Its most significant competitors include Microsoft, Amazon, Google and Oracle.
In its prospectus filed in March, the company reported a net loss of $863 million. CoreWeave said revenue grew more than 737% last year to $1.92 billion.
