Why CoreWeave Inc. (CRWV) Went Down On Tuesday?

We recently published a list of Tuesday’s 10 Worst-Performing Stocks. In this article, we are going to take a look at where CoreWeave Inc. (NASDAQ:CRWV) stands against other Tuesday’s worst-performing stocks.

Wall Street’s main indices suffered a bloodbath on Tuesday, recording steep losses amid the looming deadline for President Donald Trump’s new round of tariffs for China that would see the latter slapped with a cumulative 104-percent import tax.

The tech-heavy Nasdaq registered the heaviest fall, down by 2.15 percent, followed by the S&P 500’s 1.57 percent decline, and the Dow Jones’ 0.84-percent drop.

Ten companies mirrored the broader decline, recording hefty losses during the day. In this article, we listed the 10 worst-performing names and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with $2 billion market capitalization and $5 million in trading volume.

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CoreWeave Inc. (NASDAQ:CRWV)

CoreWeave dropped its share prices by 12.52 percent on Tuesday to end at $43.61 apiece as sell-offs were triggered by an overall market pessimism to minimize risks from the ongoing economic uncertainties.

CRWV is a newly listed company that debuted on the Nasdaq exchange on March 28, 2025. Under its initial public offering, the company offered 37.5 million shares at a price of $40 apiece after initially targeting a sale of 49 million shares at between $47 and $55 apiece.

CRWV was one of the most anticipated initial public offerings this year, having been backed by Nvidia Corp.

Further adding to the positive sentiment was CRWV’s edge with OpenAI, with the latter securing $40 billion in funding from SoftBank to bolster AI.

It can be learned that CRWV reached an $11.9-billion deal with OpenAI in March. According to analysts, the deal could reduce CRWV’s reliance on Microsoft, which earlier lessened its commitment to the company for missing deadlines and materials delivery issues needed to scale its artificial intelligence models.

Overall, CRWV ranks 6th on our list of Tuesday’s worst-performing stocks. While we acknowledge the potential of CRWV as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CRWV but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.