CoreWeave drops 10% as IPO lock-up period expiration arrives

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CoreWeave (NASDAQ:CRWV [https://seekingalpha.com/symbol/CRWV]) shares had dropped 10% by noon Thursday trading as its initial public offering lock-up period is slated to come to an end when the market closes today.

The end of the lock-up period means early investors and company insiders will be allowed to sell their shares. The expiring lockup will free up to 83% of CoreWeave's Class A shares for trading on Friday, August 15.

The lockup is ending just two days after the hyperscaler released its second quarter financial results [https://seekingalpha.com/news/4484182-coreweave-gaap-eps-of-0_60-misses-by-0_11-revenue-of-1_21b-misses-by-1_08b]. Although the results boasted a year-over-year revenue increase of 207%, shares plunged 20% during the following trading day.

Despite the recent pullback, CoreWeave shares have rocketed since its IPO in late March, as the stock surged from $40 on March 27 to peak at $183 on June 20.

CoreWeave is also pursuing a $9B acquisition [https://seekingalpha.com/news/4478079-coreweaves-9-billion-offer-for-core-scientific-faces-backlash---report] of Core Scientific (CORZ [https://seekingalpha.com/symbol/CORZ]). However, it's not a done deal, as reports have emerged that some significant investors in Core Scientific have threatened to vote against it [https://seekingalpha.com/news/4481661-core-scientific-holder-to-vote-against-coreweave-deal-unless-terms-improved] unless the terms are improved.

MORE ON COREWEAVE

* Why CoreWeave And Core Scientific Are Better Apart [https://seekingalpha.com/article/4813594-why-coreweave-and-core-scientific-are-better-apart]
* CoreWeave Q2: Why I Changed From Bear To Bull [https://seekingalpha.com/article/4813524-coreweave-q2-why-i-changed-from-bear-to-bull]
* CoreWeave Is In A Catch-22: We See 2 Windows To Buy [https://seekingalpha.com/article/4813097-coreweave-is-in-a-catch-22-we-see-2-windows-to-buy]
* CoreWeave's long-term growth story remains intact, but analysts identify near-term overhangs [https://seekingalpha.com/news/4484636-coreweaves-long-term-growth-story-remains-intact-but-analysts-identify-near-term-overhangs]
* CoreWeave falls on Q2 EPS miss [https://seekingalpha.com/news/4484114-coreweave-falls-on-soft-q2-earnings]