CoreWeave shares surge above IPO price on day three

Shares of artificial intelligence startup CoreWeave CRWV.O surge and finish well above IPO price on strong volume in third day of trading on Tues

CRWV closes up 41.8% at $52.57 after rising as high as $53.27 in late afternoon trading. Stock now sitting ~31% above $40 IPO price

On Fri, Nvidia NVDA.O-backed firm's shares finished flat after $1.5 bln IPO of 37.5 mln shares was slashed in size and priced well below range. On Mon, shares slid as low as $36

About 36 mln shares changed hands on Tues, nearing trading volume of ~41 mln shares on debut day

CRWV was among the top trending tickers on retail investor-focused social media stocktwits.com on Tues

Separately, conservative news channel Newsmax NMAX.N, extended its dizzying gains on Tues following its stunning NYSE debut on Mon

AI poster child Nvidia, which had ~6% pre-IPO stake in CoreWeave, bought $250 mln worth of the offering's shares, Reuters reported

CoreWeave, which has been unprofitable, posted more than eightfold rev increase in 2024 to $1.9 bln

Microsoft MSFT.O, a competitor through its Azure unit and a customer, accounted for nearly two-thirds of CoreWeave's rev last year

CoreWeave's IPO was viewed as a crucial barometer of investor appetite for new listings and sentiment for AI-related stocks after the launch of China's DeepSeek

The combined disappointing performances of CoreWeave and liquefied natural gas exporter Venture Global VG.N, two major IPOs this year, could weigh on the new listings pipeline