IPO mania is replacing stock-split stocks, with concerns about sustainability and inflated valuations

From NASDAQ.: 2025-04-04 03:41:00

In the past 30 months, the stock market has seen record highs, driven by AI and stock splits. Companies like Nvidia and Broadcom completed 10-for-1 forward splits in 2024, boosting valuations. However, IPO mania is now taking center stage, with CoreWeave debuting at $40 per share and Newsmax soaring to $265 per share within days. While CoreWeave aims to lead the AI revolution, concerns about sustainability persist. Newsmax’s rapid rise is fueled by retail investors, but profitability remains uncertain. As the hype around recent IPOs grows, historical data suggests caution as valuations may not be sustainable.



Read more at NASDAQ.: Move Over, Stock-Split Stocks: IPO Mania Is Taking Center Stage (and It’s Probably Not Going to End Well)