Trump’s IPO Market Push Stumbles as CoreWeave’s Debut Falls Flat

The Trump administration was expected to ignite a surge in IPOs, driven by deregulation and pro-business policies. However, the disappointing debut of CoreWeave has cast doubt on the strength of the public listing market in 2025.

Despite being a key player in AI infrastructure, CoreWeave’s IPO debut was underwhelming. After pricing below its expected range, the stock closed at $40 on Friday, leaving the company’s valuation unchanged from a year ago when it was still private. The lackluster response came against the backdrop of a 2.7% drop in the Nasdaq, further amplifying investor concerns about the health of tech IPOs.

CoreWeave’s IPO Struggles Despite AI Boom

CoreWeave, a leading supplier of Nvidia GPUs for AI training, was expected to generate strong investor interest due to the AI boom. The company’s revenue skyrocketed by over 700% last year, reaching nearly $2 billion. However, several financial red flags may have dampened enthusiasm:

• Microsoft accounts for over 60% of CoreWeave’s sales, raising concerns about revenue concentration.

• The company reported a net loss of $863 million in 2024, weighed down by high GPU costs and data center expenses.

• CoreWeave carries $8 billion in debt, raising questions about long-term sustainability.

These financial risks, combined with a shaky macroeconomic environment, contributed to the muted response from investors.

Trump’s Economic Policies Create Market Uncertainty

Investors remain cautious about the broader market due to Trump’s aggressive economic policies, which include:

• 25% tariffs on key trading partners, which could increase costs for US businesses.

• Government spending cuts, which some fear could lead to higher unemployment and weaker economic growth.

• Rising inflation concerns, as reflected in the University of Michigan’s consumer sentiment survey, which showed a sharper-than-expected decline in March.

These factors combined to create a tough environment for CoreWeave’s IPO, as investors weighed risks associated with inflation, tariffs, and overall economic conditions.

The State of the IPO Market in 2025

The lackluster response to CoreWeave’s IPO highlights a broader trend in the market—startups are hesitant to go public. Despite over 1,200 private startups valued at $1 billion or more, most are choosing to stay private and secure funding from hedge funds, private equity firms, and tech giants like Microsoft, Google, Amazon, and Nvidia.

• Hinge Health, an AI-driven digital health company, has filed for an IPO but faces market skepticism.

• Klarna, an online lender, is another IPO candidate, but faces regulatory scrutiny and economic headwinds.

• StubHub, a ticket marketplace, is exploring public listing options but remains cautious given recent market volatility.

Many of these startups see little incentive to go public when they can raise billions in private funding without dealing with stock market fluctuations and regulatory challenges.

Can the IPO Market Recover?

While CoreWeave’s debut may not inspire confidence, investors remain hopeful that the IPO market will pick up later in 2025. The company raised $1.5 billion from its IPO, though this was well below its original $2.7 billion target. If market conditions improve, CoreWeave’s stock could see a turnaround, potentially reviving confidence in tech IPOs.

The Current active IPO are Aten Papers & Foam Limited, Infonative Solutions Limited,Spinaroo Commercial Limited,Retaggio Industries Limited.

The Closed IPOs are  Identixweb Limited, ATC Energies System Limited, Shri Ahimsa Naturals Limited, Desco Infratech Limited.

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