CoreWeave Stock Drops After IPO Lock-Up Ends

CoreWeave stock falls as the IPO lock-up ends, inviting insider selling while questions linger about profitability and an ongoing acquisition deal add to the risk.

CoreWeave Stock Drops After IPO Lock-Up Ends

CoreWeave (CRWV) shares fell on Friday as the IPO lock-up expired, freeing insiders to trade up to about 83% of Class A shares and potentially increasing near-term selling pressure.
The sell-off comes after the company posted a strong 206.7% year-over-year revenue increase in the second quarter, but the market punished the shares with a roughly 20% drop in the subsequent session. Analysts on Wall Street maintain a cautious stance, with a Hold rating and an average target near $120, implying modest upside.
Investors are also weighing CoreWeave's plan to acquire Core Scientific in a deal valued around $9 billion, a proposal that has met resistance from some large shareholders and adds an uncertain path to profitability and integration.

The end of a lock-up always tests a hype cycle. When insiders can sell, it is a reminder that stock momentum often fades without clear profits and steady cash flow.
The wider picture shows a race to turn rapid revenue growth into durable earnings. If the Core Scientific deal goes ahead on terms that strain the balance sheet, upside could be capped even as headline growth remains strong.

Highlights

The coming earnings updates and deal terms will reveal whether this volatility has a rational basis.