Why CoreWeave Stock Is Plummeting Today

Core Viewpoint - CoreWeave's stock is experiencing a significant decline due to uncertainties surrounding a critical acquisition deal with Core Scientific, which is essential for its growth [1][5]. Acquisition Deal - CoreWeave had planned to acquire Core Scientific to enhance its data center capacity amid rising demand for AI infrastructure [2]. - The acquisition was structured as an all-stock deal valued at $9 billion, but CoreWeave's stock has since dropped nearly 50%, reducing the deal's notional value [3]. - Some shareholders of Core Scientific have expressed opposition to the deal unless terms are renegotiated, raising concerns about its completion [3]. Investor Sentiment - The potential failure of the acquisition or the possibility of CoreWeave needing to pay more than anticipated has created anxiety among investors [5]. - Despite being a prominent player in AI cloud computing, the company faces significant financial risks due to the high costs associated with building AI infrastructure [6].