The IPO (initial public offering) class of 2025 could have the potential to be great, with a large number of fintechs looking to hit the ground running. Indeed, with the lofty appetite for growth and tech-driven innovation, such new issues are sure to land on the public markets with a bang!
And while investing in a red-hot new issue will not be everyone’s cup of tea, given the massive volatility that tends to surround the shares as they move out of the gate, they are worth making a note of and perhaps watching should shares go bust shortly after the boom.
Indeed, IPOs can be fun to watch and if you’re patient enough, perhaps you’ll get the desired price of admission in due time, whether it takes a few weeks, months, or quarters. As always, some big-name IPOs have many traders licking their chops at the potential to make a quick overnight gain. For most investors who can’t get in on the ground floor (having to pick up shares after most others on a debut day), I’d suggest exercising immense caution when submitting market orders before the first trading day.
The price you’ll get will probably be far higher than you think. Though limit orders may be a better option for those keen on getting into an IPO on day one, I’d argue that sitting on the sidelines patiently is often the best course of action if you’re an investor. However, if you’re looking to trade an IPO, having the right game plan is a must.
Without further ado, here are three tech IPOs that could storm out of the gate this year:
Stripe
Payments firm Stripe is perhaps the most notable IPO to watch for in the first half of 2025 as it looks to hit the public markets with a valuation projected to be in the ballpark of $65 billion. Last year, the fintech processed more than $1 trillion in payment volumes—an impressive feat for a firm that’s not yet public.
Indeed, Stripe is a heavyweight contender and one that’s sure to draw more than its fair share of attention if it hits the market this year. To say it’s a highly anticipated IPO would be a colossal understatement. It’s not hard to imagine many folks have been waiting for this one for years now.
The payments company is looking to pull some major growth levers ahead of its IPO. From courting bigger enterprise customers to bumping up its out-of-the-box pricing, there are many things to look forward to as the payments platform provider looks to make good use of the funds from the public markets. All considered, Stripe is atop the list of IPOs to watch for this year.
Chime
Another fintech firm, Chime, is also expected to go public this year, though it’s unclear as to when it’ll land on the public markets. If the firm does IPO in 2025, the valuation could exceed the $25 billion it commanded back in 2021. In any case, the firm, which provides a wide range of financial services popular among young people, could really level up its growth as a public firm.
As the firm leverages next-gen tech to go after a colossal total addressable market, Chime may very well shine a bright light back on the fintech scene. Personally, I’d look for the firm to double down on AI features to separate itself from the pack as it expands its offering lineup.
Databricks
Databricks is a data analytics and AI platform firm that could have a massive debut, given its footing in the AI race. The company could command a valuation of around $62 billion, making it another heavy hitter should it go public this year. For now, 2025 seems to be the earliest the firm could go public. If things drag out, Databricks may not go public until 2026.
Either way, the IPO could be blistering hot as traders look to the AI platform plays as ways to profit from the next phase of the AI boom. For now, it looks like the firm will play things by ear. If stocks stay heated for the year, perhaps 2025 could be the year the AI innovator finally goes public.
The image featured for this article is © Chunumunu / iStock via Getty Images
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