Anticipated Releases: Three Notable Stocks Prepared for Initial Public Offerings in 2025
In the thrilling world of finance, 2024 saw the stock market shining brightly. The S&P 500, or as folks like to call it, ^GSPC, soared an impressive 23%, marking its second year in a row with an annual return over 20%. It's been a while since we've seen such a spectacular display from this benchmark index - 1998, to be exact.
And guess what? The excitement didn't stop with the stock market. Initial Public Offerings (IPOs), those thrilling debuts for young companies, showed signs of revival. The number of U.S. companies going public dipped drastically after 2021, but 2024 saw a comeback. A whopping 121 U.S. companies joined the public market by the end of Q3, which is more than the 101 IPOs in the same period the previous year. Analysts are bullish about the trend, predicting it'll carry on into 2025, potentially paving the way for Chime, Databricks, and Stripe to make their grand entrances.
Now, let's dive into these highly anticipated IPO stocks.
1. Chime
Chime, the fintech company born in 2013, is all about making banking an enjoyable, hassle-free experience. Their portfolio includes no-fees checking and high-yield savings accounts, debit cards, secured credit cards, and even fee-free overdraft protection up to $200 via SpotMe.
Chime raised a hefty $750 million in its last funding round in 2021, valuing the company at approximately $25 billion, according to The Wall Street Journal. Despite no recent funding rounds, the value of the company has maintained the same level on Forge Global, a platform for buying and selling shares in private companies.
Initially, analysts speculated Chime would go public in early 2022. However, the challenging market environment created by high inflation and rising interest rates caused a delay. But fear not, the company is reportedly planning a 2025 debut, according to Bloomberg, although it's all speculation for now.
2. Databricks
Databricks is another fintech company, but with a focus on data analytics. Their specialized software ranked as a leader in data science and machine learning by Gartner earlier this year. This connection to the AI boom could make their stock a hot commodity.
In December 2024, Databricks raised a colossal $10 billion in its latest funding round. This propelled the company's valuation to a whopping $62 billion. The recency of this funding round has given rise to questions about an IPO in 2025, but CEO Ali Ghodsi hasn't ruled it out yet. He has even suggested the IPO might happen in 2026, though it's still uncertain. Regardless, investors should keep their eyes on this company.
3. Stripe
Stripe, yet another fintech company, brings an online and in-person payments solution to the table. Their platform supports e-commerce marketplaces with tools for verifying merchant identities, accepting customer payments, and issuing payouts to sellers.
Stripe competes with other payment processors like PayPal and Adyen. Their impressive list of clients includes industry giants like Amazon, Shopify, and Instacart. In early 2024, Stripe and some investors offered employees a chance to sell their shares, valuing the company at $65 billion.
While Stripe isn't a public company, its total payment volume surged by 23% in 2023, according to management. The company also revealed plans to be cash flow positive in 2023 and 2024, making its stock particularly attractive to investors anxious about cash-heavy companies.
[1] - MarketWatch[2] - Fortune[3] - Reuters[4] - Bloomberg[5] - The Wall Street Journal
- With the promising rebound of the IPO market in 2024, analysts are keeping a close eye on potential stocks like Chime, which could raise funds through an Initial Public Offering (IPO) in 2025, following its delay due to market challenges in 2022.
- The finance world is buzzing about Databricks, a data analytics fintech company that raised a staggering $10 billion in December 2024, fueling speculation about a possible IPO in 2025 or even 2026.
- In the rapidly growing fintech sector, Stripe's impressive total payment volume growth of 23% in 2023 and plans to be cash flow positive in 2023 and 2024 have attracted investors, despite it not being a public company, paving the way for a potential future IPO.
- As the stock market continues its strong performance into 2023, and with Initial Public Offerings (IPOs) showing signs of revival, investing in well-performing companies like Chime, Databricks, and Stripe could be an excellent strategy for finance enthusiasts, as predicted by analysts.
