CoreWeave Inc. Faces Significant Decline Amid Market Turmoil
In a recent article, we highlighted Tuesday's ten worst-performing stocks, and today, we will delve into the performance of CoreWeave Inc. (NASDAQ: CRWV) in this context. The tumultuous events on Wall Street on Tuesday saw substantial losses across major indices, primarily fueled by the impending deadline for a new round of tariffs proposed by President Donald Trump on Chinese imports. This looming tariff threat, which could impose a staggering cumulative import tax of 104 percent on China, has fostered a climate of uncertainty among investors.
The Nasdaq Composite index, heavily weighted with technology stocks, suffered the most significant decline, plummeting by 2.15 percent for the day. Following closely was the S&P 500, which fell by 1.57 percent, while the Dow Jones Industrial Average recorded a more modest decline of 0.84 percent. This trend of falling stock prices was mirrored by ten companies that experienced substantial losses, prompting us to compile a list of the worst performers and analyze the factors contributing to their downturn.
To determine our list of these struggling stocks, we focused exclusively on companies with a market capitalization of at least $2 billion and a trading volume exceeding $5 million. This methodology ensures that we provide insights that are relevant and impactful in the current market climate.
Examining CoreWeave Inc. (CRWV)
On Tuesday, CoreWeave's share price saw a dramatic drop of 12.52 percent, concluding the trading day at $43.61 per share. This steep decline can largely be attributed to the prevailing market pessimism as investors sought to mitigate risks associated with ongoing economic uncertainties. The recent sell-off reflects a broader trend of cautious trading as market participants brace for potential economic fallout from the proposed tariffs.
CoreWeave, a newly listed firm on the Nasdaq, made its debut on March 28, 2025. During its initial public offering (IPO), the company successfully offered 37.5 million shares at a price of $40 each, despite initially aiming to sell 49 million shares priced between $47 and $55. This IPO was highly anticipated within the investment community, especially given that it was backed by tech giant Nvidia Corp., which has been a key player in the artificial intelligence (AI) sector.
Adding to the intrigue surrounding CoreWeave is its partnership with OpenAI, which recently secured a remarkable $40 billion in funding from SoftBank to further advance AI development. In March, CoreWeave struck a significant $11.9 billion deal with OpenAI, a move that analysts believe could help reduce its previous reliance on Microsoft. The latter company had recently scaled back its commitments to CoreWeave, citing missed deadlines and delivery issues concerning essential materials necessary for scaling its AI models.
Despite its recent struggles, CoreWeave ranks sixth on our list of Tuesday's worst-performing stocks. While we recognize the growth potential that CoreWeave offers as an investment, we maintain that there are even more promising AI stocks that could yield higher returns in a shorter time frame. Notably, one AI stock has shown remarkable growth since the beginning of 2025, while many popular AI stocks have experienced declines of around 25 percent. For investors seeking a more attractive AI stock trading at less than five times its earnings, we recommend checking out our detailed report on the most affordable AI stock options available.