CoreWeave Shares Climb After Jane Street Discloses 5.4% Stake
The trading giant's investment offers a vote of confidence after the AI cloud provider's stock had slid from its post-IPO highs.
Shares of CoreWeave (CRWV) rose in after-hours trading on Wednesday after it was disclosed that quantitative trading firm Jane Street has taken a significant stake in the specialized artificial intelligence cloud provider.
A regulatory filing revealed that Jane Street acquired approximately 19.95 million shares, constituting a 5.4% passive stake in the company as of August 13. The disclosure, which makes the firm CoreWeave's fourth-largest shareholder, sent the stock up 1.62% to $93.03 in extended trading.
The investment arrives at a crucial time for CoreWeave, which provides large-scale access to Nvidia's in-demand GPUs for AI and machine learning workloads. The company's stock has been on a downward trend since late June, trading significantly below its 52-week high of $187, which was set in the months following its March IPO.
This vote of confidence from a major financial player follows CoreWeave's mixed second-quarter results reported last week. The company posted revenue of $1.21 billion, beating analyst estimates, but reported a wider-than-expected loss of 27 cents per share. Following the report, multiple analysts maintained neutral ratings, with some suggesting the company's stock was fully valued despite its recent pullback.
Jane Street's move into the stock could be interpreted by the market as a signal that the AI infrastructure company is undervalued after its recent slide. As a key partner for companies developing large-scale AI models, CoreWeave's performance is closely watched as a barometer for the broader AI hardware and infrastructure sector.