NEW YORK, Jan 20, 2026, 11:13 EST — Regular session
- CoreWeave shares dropped roughly 6% in late-morning trading, underperforming an already weak tech sector.
- A law firm announced that a securities class action has been filed, setting a March 13 deadline for lead-plaintiff submissions.
- Fresh U.S. tariff threats targeting parts of Europe sparked broader risk-off trading.
Shares of CoreWeave, Inc. (CRWV) dropped 5.6% to $95.59 by late morning on Tuesday, dipping as low as $93.23 earlier in the session. Nvidia slid 2.8%, while Microsoft eased 1.1%, adding strain to the AI supply chain.
Markets dipped as they reopened following a U.S. holiday, hit by renewed risk-off sentiment after President Donald Trump threatened new tariffs on several European nations over a dispute involving Greenland, Reuters reported. “The headlines are going to drive angst and concern about what the future holds,” said David Lundgren, chief market strategist at Little Harbor Advisors. (Reuters)
CoreWeave is also grappling with a new legal challenge. Hagens Berman announced a securities class action lawsuit targeting the company and some of its executives, filed on behalf of investors who bought CoreWeave securities between March 28, 2025, and Dec. 15, 2025. Investors have until March 13 to petition the court to name a lead plaintiff—the person who would represent the entire class. The lawsuit claims CoreWeave misled shareholders about demand levels and the risks of depending heavily on a single third-party data center supplier. (PR Newswire)
The stock has faced scrutiny over execution issues for months. In November, CoreWeave’s shares dropped 10% after the company lowered its annual revenue outlook, blaming delays with a major data center partner, Reuters reported. Barclays analysts noted, “The quarter revealed something that investors have feared for a while – operational risk.” (Reuters)
CoreWeave, founded in 2017, provides cloud infrastructure tailored for AI workloads and claims to be “trusted by leading AI labs, startups, and global enterprises.” The company went public on Nasdaq in March 2025, according to its own statements. (CoreWeave)
Tuesday’s drop highlighted just how fast AI infrastructure stocks with high growth can fall when nerves are frayed. Investors pulling back tend to target companies linked to hefty spending plans first.
The lawsuit is still in its early phases and might be thrown out, and tariff concerns could fade. Still, if the trade dispute drags on or project setbacks resurface, it would raise fresh questions about CoreWeave’s ability to convert demand into timely revenue.
Investors are eyeing the upcoming company update and fresh filings for clues on delivery schedules, capacity expansion, and customer interest. The first firm date on the legal docket is March 13, set as the cutoff for investors aiming to be named lead plaintiff in the lawsuit.
