Why CoreWeave Stock Sank 12.4% This Week
The stock fell after getting added to a major index this week.
Why CoreWeave Stock Sank 12.4% This Week
Overview
Shares of CoreWeave (NASDAQ: CRWV) fell 12.4% this week, according to data from S&P Global Market Intelligence. The artificial intelligence (AI) infrastructure company was added to the Nasdaq 100 Index on Monday, prompting investors to sell afterward. Some investors also remain skeptical about its heavy debt load.
As of the market close on Thursday, June 25th, CoreWeave stock is down 12.4% this week. Here's why the stock is falling, and whether now is a good time to scoop up some shares.
Details
Just a few days ago, CoreWeave was officially added to the Nasdaq-100 Index, which includes 100 of the largest non-financial businesses listed on the Nasdaq. Ahead of index inclusion, traders can get excited about index fund buyers propping up a stock, leading to a short-term pop after the announcement. When the inclusion is made official, it can break this momentum, as happened to CoreWeave over the last couple of trading days.
Source
Originally published at www.fool.com.
