Home / Business and Economy / Cramer Calls CoreWeave "Expensive" as Meme Stock Frenzy Drives $50B Valuation
Cramer Calls CoreWeave "Expensive" as Meme Stock Frenzy Drives $50B Valuation
8 Aug
Summary
- CoreWeave's IPO was downsized, but stock still surged to over $50B valuation
- Cramer is a "huge fan" of CoreWeave's business but finds the stock "pretty expensive"
- Meme stock investors drove up CoreWeave's price due to limited supply
As of August 8th, 2025, the cloud computing firm CoreWeave (NASDAQ:CRWV) has seen its stock price surge to an impressive $50 billion valuation, despite its IPO being downsized. According to CNBC's Jim Cramer, he is a "huge fan" of CoreWeave's business, which provides a cloud platform optimized for generative AI, but he finds the current stock price to be "pretty expensive."
Cramer explains that the recent IPO frenzy has turned many new public offerings into the new "meme stocks," with investment banks struggling to price them accurately. In the case of CoreWeave, the company's initial public offering was downsized, with only 37.5 million shares being sold, raising $1.5 billion instead of the originally hoped-for $1 billion more.
However, the limited supply of CoreWeave shares available for trading has fueled a meme stock-like buying frenzy, driving the stock price up rapidly. Cramer, who has been observing this pattern since 1998, believes that the "memesters" have been buying and buying the stock, knowing there was no new supply to meet the demand.
Despite his concerns about the stock's valuation, Cramer remains a "huge fan" of CoreWeave's business, which provides cloud-based services for AI workloads such as model training, inference, and rendering. The company's platform includes tools for infrastructure management and dataset optimization, making it an attractive option for businesses in the rapidly growing AI sector.
