Recent IPO stocks are seeing the difference a year can make.
So far in 2025 we've already seen 100 IPOs, with 15 of them raising at least $100 million, according to recent data from Renaissance Capital. Even the "unicorn" IPO returned, with fintech's Chime, ad tech's MNTN and crypto's Circle all achieving valuations far north of $1 billion.
The next six months are expected to have a strong showing as well. It's an immense improvement from a 2024 that saw a paltry 150 companies go public for the entire year, according to Renaissance Capital, a provider of pre-IPO investment research and IPO-focused ETFs.
The firm says that while U.S. tariffs pose a potential threat to the pickup in new issues, "solid returns and investor appetite signal and end to the IPO market's three-year slump in the second half."
A thriving stock market, despite some underlying economic concerns, is only partially to credit for the IPO stock boom.
"When you've got high quality new issues, companies with a great new product or service that's driving meaningful bottom line and top line growth, that's just what you want to see," Ken Shreve, senior markets writer at Investor's Business Daily tells the "Investing with IBD Podcast."
Recent IPO stocks are typically in the earlier stages of growth, usually because of a new product or service that's fueling gains.
Audio Version Of Podcast
Circle, CoreWeave Plot Recent IPO Stock Roadmap
Stablecoin issuer Circle skyrocketed 260% from its debut close of 83.23 to an all-time high of 298.99 on June 23 before pulling back. Circle stock is now trying to form a new base.
Investors are betting on Circle's promise to give the crypto industry more legitimacy through a cryptocurrency less likely to fluctuate in value. It helps that Circle is already profitable, with interest income from reserves backing its stablecoin.
CoreWeave, meanwhile, broke out of an IPO base with a 64.62 buy point in mid-May. From the breakout to the all-time high of 187 on June 20, shares surged roughly 190%. The stock is now bouncing from support at its 21-day line, which coincides with the 150 price level.
"It was a picture perfect breakout from a first-stage IPO base," Shreve said.
The recent IPO stock provides AI infrastructure to companies on demand, and has a partnership with Nvidia for its top-shelf hardware.
While CoreWeave stock is already well above its IPO base buy point, it could be in the early stages of forming another base. Investors willing to be patient and disciplined could then take advantage of a new setup.
Hazards Of New Market Debuts
While recent IPO stocks like Circle and CoreWeave have been lucrative trades as of late, Shreve cautions against simply jumping into a new issue right when it debuts.
"It's just important to wait for a little bit of a consolidation period, especially if it's a real hot IPO that opens sharply higher and goes on a nice run," Shreve said. While strong demand can fuel a recent IPO stock, it's also an easy way to quickly lose money since many IPO stocks can be volatile.
Recent IPO stocks by definition don't have historical chart data that can help a trader identify the stock's personality. Companies with particularly innovative products may see more volatility as investors work to try and put a price to the stock.
But Shreve says there's a simple fix: patience. Over time, a recent IPO will show whether its price action is volatile or orderly. "Just watch the price action for a few days, and let it develop a trading personality," he said.
Follow Mike Juang on X at @mikejuangnews and on Threads at @namedvillage.
