The artificial intelligence (AI) cloud provider CoreWeave’s (NASDAQ: CRWV) initial public offering (IPO) has been nothing short of a rollercoaster ride for the company and its investors.
March 28, CRWV stock’s first day in the market was widely described as ‘lukewarm’ as it featured a 7% fall from the original price – reportedly anchored by Nvidia’s (NASDAQ: NVDA) $250 million order that came shortly ahead – of $40.
The April 1 session proved profoundly different as CoreWeave shares rocketed 41.77% to their latest closing price of $52.57.
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Interestingly, CRWV might retain the positive momentum in the coming days of trading as the Wednesday pre-market pullback is, by press time, limited to 1.16%, and the equity is changing hands at $51.96.
Why CRWV stock soared 40% in a day
Though there is little doubt that investors welcome Nvidia’s long-standing and persistent cooperation with CoreWeave, the sudden rally might be tied to a different AI software infrastructure provider: Progress Software (NASDAQ: PRGS).
Specifically, Progress filed a particularly strong quarterly report on March 31, with the standout result being the 29% revenue increase compared to the same period one year earlier. PRGS shares themselves rallied more than 12% to $57.76 on April 1.
Controversy surrounding the CoreWeave IPO
Simultaneously, the market positivity proved no barrier to controversy. On March 24 – days before the IPO – DA Davidson estimated that CRWV stock is unlikely to soar much from its original $40 price as it set the price target at $47 and the outlook as ‘neutral.’
Activity directly preceding the public offering was also contentious due to Nvidia’s involvement with some, as Jim Cramer put it, accusing the semiconductor giant of making Lazy Susan deals and generally engaging in monopolistic behavior.
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