CoreWeave is valued at around $57 billion, even after the stock tumbled following its second-quarter report. That's more than 20 times the company's book value, or assets minus liabilities. Even under a rosy scenario for the AI industry, it's hard to get behind that kind of valuation.

CoreWeave ( CRWV) is an AI cloud computing company that delivered multibagger gains post-IPO. Soaring AI demand and spending on computing and data centers allowed it to land significant contracts and gain steam, though the momentum has come to an end and reversed.

Corporate insiders will soon be able to unload shares, which could cause some selling pressure but also ultimately reduce volatility by increasing the stock’s float.

CoreWeave ($CRWV) shares are cratering as investors prepare for the end of the AI data center firm’s IPO lock-up period. Indeed, when the lock-up

Shares of CoreWeave (NASDAQ: CRWV) are falling on Thursday, down 11.4% as of 12:52 p.m. ET. The drop comes as the S&P 500 and Nasdaq Composite were down modestly. The artificial intelligence (AI)-focused cloud provider's stock continues to slide after releasing its second-quarter earnings earlier this week.

CoreWeave (NASDAQ:CRWV) shares had dropped 10% by noon Thursday trading as its initial public offering lock-up period is slated to come to an end when the market closes today. The end of the lock-up period means early investors and company insiders will be allowed to sell their shares.

CoreWeave’s stock fell 20% after the AI data center provider reported a larger-than-expected loss, according to CNBC. CoreWeave reported a second-quarter adjusted loss of 27 cents per share, exceeding the 21-cent loss expected by analysts polled by LSEG.

CoreWeave (CRWV) is down nearly 20% at the time of writing even after reporting market-beating revenue for its second quarter and offering upbeat guidance for the future. The AI infrastructure company saw its revenue more than triple to $1.