CoreWeave's IPO Debut Fizzles

CoreWeave's stock slumps in second day of trading after IPO

March 31, 2025

CoreWeave, a biotech company that develops and commercializes novel enzymes for the production of biofuels and biochemicals, saw its stock plummet in its second day of trading after going public through an initial public offering (IPO).

The company's shares opened at $20.50 and quickly dropped to $16.50, a decline of 19.5% from the IPO price of $20.50. The stock finished the day at $17.50, a decline of 14.5% from the opening price.

The IPO was priced at $20.50 per share, with the company raising $150 million in the offering. The IPO was seen as a major milestone for the company, which has developed a proprietary enzyme technology that can be used to produce a range of biofuels and biochemicals.

The decline in CoreWeave's stock was attributed to a combination of factors, including concerns about the company's valuation and the broader market volatility. The stock market has been experiencing a correction in recent weeks, with many IPOs seeing their shares decline in value.

CoreWeave's CEO, Dr. David W. Lee, said in a statement that the company is committed to its long-term goals and is not concerned about the short-term fluctuations in its stock price. "We are focused on executing our strategy and delivering value to our shareholders," he said.

The company's IPO was led by J.P. Morgan, Goldman Sachs, and BofA Securities, and was seen as a major milestone for the biotech industry. The company plans to use the proceeds from the IPO to fund its research and development efforts, as well as to pay off debt.