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CoreWeave Stock Falls. It's Finally Buying Core Scientific. - Barron's

1. CoreWeave shares fell 4.68% post-announcement of Core Scientific acquisition. 2. Acquisition values Core Scientific at $9 billion, equating to $20.40 per share. 3. Deal adds 1.3 gigawatts power, aiding CoreWeave's data center expansion. 4. Market sentiment appears negative; expectational gap impacted share prices. 5. Nvidia holds a 7% stake in CoreWeave, strengthening future collaborations.

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FAQ

Why Bearish?

The immediate market reaction was negative, indicating investor concern over the acquisition terms. Historically, such acquisitions can lead to initial discontent before stabilization.

How important is it?

The acquisition directly affects CRWV's operational capacity and market position. The immediate fall in share price reflects investor concerns about valuation and integration risks.

Why Short Term?

Short-term volatility is expected as investors adjust to the acquisition news; however, long-term potential hinges on integration success and market response.

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