• Education
    • Higher Education
    • Scholarships & Grants
    • Online Learning
    • School Reforms
    • Research & Innovation
  • Lifestyle
    • Travel
    • Food & Drink
    • Fashion & Beauty
    • Home & Living
    • Relationships & Family
  • Technology & Startups
    • Software & Apps
    • Startup Success Stories
    • Startups & Innovations
    • Tech Regulations
    • Venture Capital
    • Artificial Intelligence
    • Cybersecurity
    • Emerging Technologies
    • Gadgets & Devices
    • Industry Analysis
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy
Today Headline
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
Today Headline
No Result
View All Result
Home Business & Finance

Should You Invest in the CoreWeave IPO? History Offers a Clear Answer. todayheadline

March 26, 2025
in Business & Finance
Reading Time: 5 mins read
A A
0
SNOW Chart
6
SHARES
13
VIEWS
Share on FacebookShare on Twitter


CoreWeave’s IPO could set the stage for the next chapter of the artificial intelligence (AI) revolution.

During the last two years, artificial intelligence (AI) has emerged as a generational megatrend rarely witnessed in the capital markets. While the S&P 500 posted total returns of 26% and 25% during 2023 and 2024, respectively, a closer analysis of these trends shows that investors have largely flocked to a small cohort of megacap stocks over the last couple of years.

The collective performance of the “Magnificent Seven” — Nvidia, Microsoft, Alphabet, Amazon, Meta Platforms, Apple, and Tesla — has played an outsize role in fueling the market to new highs.

However, this year has gotten off to a rough start for the Magnificent Seven, with each member except Meta posting a negative return year to date as of this writing.

From a macro perspective, I suspect that uncertainty over tariffs, as well as ongoing spending for AI infrastructure have left some investors tepid over the near-term prospects of their once-favorite stocks. In addition, some of them may simply be fatigued by the Magnificent Seven and are looking for new growth opportunities.

And what better place to look for growth than an initial public offering (IPO), right? Well, maybe.

Let’s explore AI’s hottest new IPO stock: a data center infrastructure specialist backed by Nvidia called CoreWeave. After analyzing a couple of high-profile technology IPO stocks from recent years, my hope is that investors will come away with a clear idea of whether or not investing in the CoreWeave offering is a prudent choice right now.

1. Analyzing the Snowflake IPO

In September 2020, enterprise software company Snowflake went public on the New York Stock Exchange. This was one of the most hyped IPOs that I can think of in recent memory.

With backing from some of the most prestigious venture capital firms in the world — including Sequoia, Altimeter, and Redpoint — as well as notable strategic investors, such as Salesforce and none other than Warren Buffett’s Berkshire Hathaway, Snowflake looked like a no-brainer opportunity.

Shares opened at $245 on its first day of trading and rose as high as $319. By the end of its first day as a public company, Snowflake had made it into the record books, becoming the largest software IPO in history.

There was undoubtedly a high degree of euphoria during its early days as a public company, but the enthusiasm was short-lived. When AI emerged as the market’s next big catalyst a couple of years ago, Snowflake’s foray into the space was suspiciously quiet. Unlike some of its software counterparts, it failed to captivate investors and sell them on how AI was going to be a transformative opportunity underscored by long periods of high-margin growth.

A few years after its IPO, Snowflake’s CEO resigned and Berkshire Hathaway dumped its entire position in the software company.

SNOW data by YCharts.

The chart above illustrates the stock’s return since going public. As you can see, the company experienced multiple sudden price jumps during some early periods as a public company. But over the last couple of years, investors have largely soured on the stock, with shares now down roughly 38% since inception.

A person thinking.

Image source: Getty Images.

2. Analyzing the Palantir IPO

Just two weeks after Snowflake went public, a peer in the enterprise software landscape, Palantir Technologies, made its debut on the New York exchange.

The storyline around Palantir at the time of its IPO was quite the opposite compared to Snowflake. Few on Wall Street had a firm grasp on its business model.

Moreover, the company’s close (and secretive) relationship with the Department of Defense inspired many investors to view Palantir as a government contractor or a consulting agency, and less so as a true technology platform.

Its first day of trading wasn’t too special. Shares opened up at $10 and closed slightly lower around $9.50.

For the first couple of years as a public company, one of its largest challenges was winning over institutional investors. In a paradox for the ages, it actually was the rise of AI that started turning heads on Wall Street from Snowflake to Palantir.

Following the company’s release of its Artificial Intelligence Platform in April 2023, Palantir has done an impressive job diversifying its business beyond government contracts. It is now working closely with many of the largest AI developers in the private sector, including Microsoft, Amazon, Oracle, Meta Platforms, and Databricks.

By unlocking new opportunities in the commercial sector, Palantir has been able to accelerate revenue growth while simultaneously widening profit margins and minting free cash flow on a consistent basis. What was once a stock that sat in the shadows of the tech realm just three short years ago swiftly transitioned into one of the top-performing stocks in the S&P 500 last year.

PLTR Chart

PLTR data by YCharts.

In fact, if you invested in Palantir at the time of its IPO and held through today, you would be sitting on a gain of 838%.

The final verdict

Narratives surrounding CoreWeave’s upcoming IPO are echoing that of Snowflake. CoreWeave is not only the first major IPO for an AI unicorn in recent years, but a successful public debut could also set the stage for a flood of high-profile private technology companies yearning to hit the public exchanges.

This article underscores one clear point: Investing in a stock at the time of an IPO carries quite a bit of risk.

I think the hype surrounding CoreWeave could inspire some outsize buying activity, and investors who aren’t careful could get caught up in a nasty momentum trade and end up holding the bag.

To me, the most prudent strategy is to let time pass and assess CoreWeave’s operating performance for its first few quarters as a public company. Long-term investors will have ample buying opportunities at various price points should they choose. But for now, I think the safer option is to let the IPO shake out, and astute investors are better off monitoring the company’s progress over the next several months.

Over time, CoreWeave’s stock price should begin to follow a more fundamental trajectory based on the company’s actual underlying results.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Adam Spatacco has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Palantir Technologies, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, Oracle, Palantir Technologies, Salesforce, Snowflake, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Tags: answerclearCoreWeaveHistoryInvestipoofferstodayheadline
Previous Post

Vietnam says to cut tariffs on several U.S. products todayheadline

Next Post

Jasmine Paolini wins, advances to Miami Open semifinals todayheadline

Related Posts

Departure of Tesla’s top humanoid robot engineer adds to turmoil after Elon Musk and President Trump’s public feud

Departure of Tesla’s top humanoid robot engineer adds to turmoil after Elon Musk and President Trump’s public feud todayheadline

June 6, 2025
6

Draganfly Announces Additional Exercise Of Over-Allotment Option todayheadline

June 6, 2025
7
Next Post

Jasmine Paolini wins, advances to Miami Open semifinals todayheadline

  • Trending
  • Comments
  • Latest
Family calls for change after B.C. nurse dies by suicide after attacks on the job

Family calls for change after B.C. nurse dies by suicide after attacks on the job

April 2, 2025
Pioneering 3D printing project shares successes

Product reduces TPH levels to non-hazardous status

November 27, 2024

Hospital Mergers Fail to Deliver Better Care or Lower Costs, Study Finds todayheadline

December 31, 2024

Police ID man who died after Corso Italia fight

December 23, 2024
Harris tells supporters 'never give up' and urges peaceful transfer of power

Harris tells supporters ‘never give up’ and urges peaceful transfer of power

0
Des Moines Man Accused Of Shooting Ex-Girlfriend's Mother

Des Moines Man Accused Of Shooting Ex-Girlfriend’s Mother

0

Trump ‘looks forward’ to White House meeting with Biden

0
Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

0
June 6, 1980: The asteroid impact theory

June 6, 1980: The asteroid impact theory

June 7, 2025
We Can’t Build Canada Up While Our Communities Are Burning Down

We Can’t Build Canada Up While Our Communities Are Burning Down

June 7, 2025
Supreme Court leaves DC gun restriction on large magazines in place

Supreme Court leaves DC gun restriction on large magazines in place

June 7, 2025

Trump, Musk feud painful to watch: CPAC chairman

June 7, 2025

Recent News

June 6, 1980: The asteroid impact theory

June 6, 1980: The asteroid impact theory

June 7, 2025
3
We Can’t Build Canada Up While Our Communities Are Burning Down

We Can’t Build Canada Up While Our Communities Are Burning Down

June 7, 2025
3
Supreme Court leaves DC gun restriction on large magazines in place

Supreme Court leaves DC gun restriction on large magazines in place

June 7, 2025
4

Trump, Musk feud painful to watch: CPAC chairman

June 7, 2025
4

TodayHeadline is a dynamic news website dedicated to delivering up-to-date and comprehensive news coverage from around the globe.

Follow Us

Browse by Category

  • Africa
  • Asia
  • Basketball
  • Business & Finance
  • Climate Change
  • Crime & Justice
  • Cybersecurity
  • Economic Policies
  • Elections
  • Entertainment
  • Entrepreneurship
  • Environmental Policies
  • Europe
  • Football
  • Gadgets & Devices
  • Health
  • Medical Research
  • Mental Health
  • Middle East
  • Motorsport
  • Olympics
  • Politics
  • Public Health
  • Relationships & Family
  • Science & Environment
  • Software & Apps
  • Space Exploration
  • Sports
  • Stock Market
  • Technology & Startups
  • Tennis
  • Travel
  • Uncategorized
  • Us & Canada
  • Wildlife & Conservation
  • World News

Recent News

June 6, 1980: The asteroid impact theory

June 6, 1980: The asteroid impact theory

June 7, 2025
We Can’t Build Canada Up While Our Communities Are Burning Down

We Can’t Build Canada Up While Our Communities Are Burning Down

June 7, 2025
  • Education
  • Lifestyle
  • Technology & Startups
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy

© 2024 Todayheadline.co

Welcome Back!

OR

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Business & Finance
  • Corporate News
  • Economic Policies
  • Entrepreneurship
  • Market Trends
  • Crime & Justice
  • Court Cases
  • Criminal Investigations
  • Cybercrime
  • Legal Reforms
  • Policing
  • Education
  • Higher Education
  • Online Learning
  • Entertainment
  • Awards & Festivals
  • Celebrity News
  • Movies
  • Music
  • Health
  • Fitness & Nutrition
  • Medical Breakthroughs
  • Mental Health
  • Pandemic Updates
  • Lifestyle
  • Fashion & Beauty
  • Food & Drink
  • Home & Living
  • Politics
  • Elections
  • Government Policies
  • International Relations
  • Legislative News
  • Political Parties
  • Africa
  • Asia
  • Europe
  • Middle East
  • Artificial Intelligence
  • Cybersecurity
  • Emerging Technologies
  • Gadgets & Devices
  • Industry Analysis
  • Basketball
  • Football
  • Motorsport
  • Olympics
  • Climate Change
  • Environmental Policies
  • Medical Research
  • Science & Environment
  • Space Exploration
  • Wildlife & Conservation
  • Sports
  • Tennis
  • Technology & Startups
  • Software & Apps
  • Startup Success Stories
  • Startups & Innovations
  • Tech Regulations
  • Venture Capital
  • Uncategorized
  • World News
  • Us & Canada
  • Public Health
  • Relationships & Family
  • Travel
  • Research & Innovation
  • Scholarships & Grants
  • School Reforms
  • Stock Market
  • TV & Streaming
  • Advertise with Us
  • Privacy & Policy
  • About us
  • Contact

© 2024 Todayheadline.co