Nothing new isn't it. I've foreseen such and forewarned. It's only a matter of time.  But for those new to the topic, let's revisit what a lockup expiration is.

​WHAT IS A LOCKUP EXPIRATION?

When a company goes public through an IPO, insiders (executives, early investors, etc.) are typically restricted from selling their shares for a period of time, known as the lock-up period. The expiration of this period allows these insiders to sell their shares for the first time, which can create significant selling pressure on the stock.  

COREWEAVE'S SITUATION:

​CoreWeave is an AI-specific cloud computing company. Its stock, which had rallied significantly since its IPO, was subject to a lock-up period.  ​The lock-up expiration occurred shortly after the company reported its second-quarter earnings.  According to the company's IPO prospectus, a large percentage of shares (around 84%) were held by insiders and early investors who were subject to the lock-up.  

​The expiration of this lock-up period led to a large supply of shares being made available for sale, which had a significant impact on the stock price.  ​Insiders reportedly sold $1 billion worth of stock as the lock-up period expired.  

​IMPACT ON THE STOCK:

​The stock was already facing pressure after CoreWeave reported a wider-than-expected quarterly loss and high operating expenses.  ​The combination of the negative earnings report and the massive supply of shares from the lock-up expiration contributed to a sharp decline in the stock price. ​Analysts and investors were concerned about the company's reliance on a small number of customers, its high capital needs, and its substantial debt. ​Some analysts had warned that the stock was likely to experience a "significant pullback" around the time of the lock-up expiration due to the potential for new selling pressure.  

​In summary, the expiration of CoreWeave's lock-up period, combined with a disappointing earnings report and other company-specific concerns, led to a large-scale sale of shares by insiders, causing significant selling pressure and a sharp drop in the stock price.  

WOULD I INVEST IN IT? Again nopes, newly ipo-ed stocks aren't for me LOL. Especially knowing the fact that insiders bail on their own company? How do investors even get the confidence to buy the dip? I've got no balls for this, not ballsy enough.

Good luck to those in it.

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