CoreWeave and Newsmax IPOs Were Very Different

Initial public offering (IPO) momentum is buzzing right now after a few years of stagnation. Two IPOs in the last three days have shaken up Wall Street, for very different reasons. 

Artificial intelligence (AI) company CoreWeave Inc (NASDAQ:CRWV) made its Nasdaq debut last week in disappointing fashion. On Thursday, the former crypto miner turned AI maven reduced its valuation to $23 billion, sharply lower than the $33 billion initially projected. This was the warning shot that AI and data centers were possibly overvalued.

Then, on Friday, the stock opened at $39, just below its IPO price of $40. Yesterday, CRWV shed 7.3%, and today, the stock is 5.4% higher to trade at $39.09. The downsized valuation, paired with the unenthusiastic debut, sent tremors through Big Tech at an inopportune time, with data center demand questions brewing. Nvidia (NVDA) contributed $250 million to the IPO, and CoreWeave's OpenAI contract worth $11.9 billion puts Microsoft (MSFT) in the crosshairs. Given the uncertainty tech companies are staring down, this was not CoreWeave's best foot forward.

Yesterday, conservative media outlet Newsmax Inc (NYSE:NMAX) made its New York Stock Exchange (NYSE) debut. The stock opened at $14 but surged by over 700% in the afternoon, resulting in several halts for volatility. It closed at $83.51, and is 76% higher today to trade at $147.25 at last check.

Newsmax's market cap of $10.7 billion is right around New York Times (NYT) and Paramount (PARA). Bloomberg reported that the push came from a majority of individual investors, with the stock trending on social media sites and a heavy favorite on Fidelity accounts.

This could be just the beginning of the fireworks. Fintech giants Stripe and Klarna have IPOs looming, as does ticket company StubHub.