CoreWeave, Inc. (CRWV), a leading AI cloud computing company, saw its shares plummet by 15.91% during intraday trading on Thursday, continuing a downward trend that began in after-hours trading on Wednesday. This significant decline comes as investors reassess the company's valuation following its recent surge and Initial Public Offering (IPO).

The sharp downturn appears to be driven by multiple factors. First, profit-taking seems to be in play as enthusiasm cools following reports of potential collaboration with tech giant Google. These talks, which involved Google potentially renting state-of-the-art Nvidia Blackwell chips from CoreWeave for AI operations, had previously fueled a stock surge. However, investors now appear to be reevaluating the company's near-term prospects.

Adding to investor concerns are recent insider trading activities. SEC filings reveal that CEO Michael N. Intrator and officer Brian Venturo engaged in significant stock transactions, including acquisitions and sales of large share volumes. Such insider activities often draw close scrutiny from investors and may have contributed to the stock's volatility. As CoreWeave navigates its post-IPO landscape, market participants are carefully weighing the company's long-term potential against its current market valuation, leading to this substantial price correction.