Bloomberg Businessweek CoreWeave Drops 2.5% After Heavily Downsized $1.5 Billion IPO
Mar 28, 2025
Michael McKee, Bloomberg News International Economics & Policy Correspondent, shares insights on the recent downturn in economic indicators and inflation trends. Joel Weber, Head of Bloomberg Explains, announces an exciting new quiz aimed at testing listener knowledge. Andy Kurtzig, CEO of JustAnswer, discusses the impact of the Ukraine war on his business and emphasizes the tech industry's responsibility to support Ukraine. Together, they explore the significant effects of CoreWeave's IPO and market dynamics, highlighting important shifts in investor sentiment.
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CoreWeave IPO Performance
- CoreWeave shares opened below the IPO price but quickly recovered due to likely use of the green shoe option by bankers.
- The stock's initial dip and recovery suggests potential market jitters and the influence of allocated investors.
CoreWeave's Business Model
- CoreWeave CEO Michael Intrater believes the company's capital-intensive business model requires investors' deeper understanding.
- The stock's volatility may continue as investors evaluate its unique approach.
IPO Market Bellwether
- CoreWeave's IPO, while unique, serves as a market indicator, with recent IPOs underperforming despite overall market conditions.
- Investors seek IPO outperformance, and the current trend raises concerns about private company valuations.