CoreWeave Inc. ( CRWV ) shares traded lower as investors react to the company's disappointing IPO performance and concerns about its financials.

What To Know: Analysts point to several factors weighing on CoreWeave's ( CRWV ) stock. The company initially aimed to raise $2.7 billion but settled for $1.5 billion, with Nvidia stepping in to support the offering due to weaker-than-expected demand. CoreWeave ( CRWV ) generated $1.9 billion in revenue last year but remains unprofitable and carries $7 billion in debt, raising concerns about its valuation.

The stock, which debuted Friday at $40 per share after pricing below the expected $47 to $55 range, has struggled to gain momentum despite backing from Nvidia.

Investor sentiment toward AI infrastructure stocks remains mixed, with Microsoft recently signaling a slowdown in its AI spending. Analysts say CoreWeave's ( CRWV ) struggles are more about company-specific risks rather than a broader weakness in the AI sector.

Despite the weak debut, CoreWeave ( CRWV ) has secured key partnerships, including a 15-year lease agreement with Galaxy Digital. Some analysts see potential for growth if the company can leverage its relationships with Nvidia, OpenAI and Microsoft to expand its high-performance computing services.

The stock continues to trade within a tight range of $36 to $41.94 since going public, with investors watching for signs of stability and improved financial performance.

CRWV Price Action: Coreweave ( CRWV ) closed down 7.30% at $37.08 at the time of writing, but was up slightly in after-hours trading, according to Benzinga Pro.

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