Stock-Split Watch: Is CoreWeave Next?

The analysis indicates that Large initial public offerings have done well this year

Instead of having to build their own infrastructure, a costly and complex undertaking, companies looking to create and run AI applications can essentially rent the infrastructure from CoreWeave, in today's financial world

Could a stock split soon be in the cards

Additionally, Understanding stock splits Stock splits and reverse stock splits are tools used by companies to change the price of a stock and a company's outstanding s without changing the market cap

Moreover, That's crucial for investors to understand

If you own a stock before it undergoes some kind of stock split, you will see the stock price and number of s you own change, but your equity position will remain the same

However, Image source: Getty Images

However, On the other hand, Stock splits decrease the price and increase the s outstanding

They can be a useful way for a company to make the stock feel more attainable for investors if it just went on a big run and now trades for hundreds or thousands of dollars per

Stock splits can also boost liquidity

An example of a stock split would be a 2-for-1 stock split, given the current landscape

In this scenario, the company would exchange two s for each one the investor owned, so the number of s the investor owned would double from 10 to 20 (something worth watching)

A reverse stock split does the opposite and increases the price while lowering the total count (noteworthy indeed)

A common use of a reverse stock split would be if a company is struggling to get into compliance with rules set by the New York Stock Exchange or Nasdaq, in this volatile climate

Companies may also use a reverse stock split to increase its stock price up to a level more in line with peers, given the current landscape

Is CoreWeave Next (this bears monitoring)

CoreWeave has been on a big run, but it's not abnormal to see large AI stocks trading for hundreds of dollars per, as they've been

I suppose the company could conduct a stock split to get its price down to make the stock more attainable, but I don't see a real need, given current economic conditions

CoreWeave is a fast-growing company in the AI space, so I suppose if the AI rally continues, the stock could go on another big run, making management once again think a stock split (noteworthy indeed)

However, this seems unly to happen in the near term, given the current landscape

That's because several large holders are still under lock-up agreements, which is common to see after an IPO and means they aren't allowed to sell their s for a certain amount of time

On the other hand, Additionally, Most of the lock-up periods for insiders at CoreWeave reportedly expire in late September, when most insiders will be able to sell s

Not only will this add liquidity, but it could induce selling pressure as more supply floods the market (fascinating analysis)