Trump's tariffs cause IPO market slump, with high-profile companies staying private

From Yahoo Finance: 2025-04-07 12:09:00

After a promising start, the IPO market has taken a nosedive. CoreWeave, StubHub, and Klarna have delayed their IPOs due to Trump’s tariffs, causing a stock market slide. With IPOs stagnant, the wealth divide widens, and average investors miss out on high-growth companies. 2025 could be the fourth straight down year for IPOs.

High-profile companies like SpaceX and Stripe are staying private longer, avoiding public scrutiny. Smaller startups struggle to go public due to a lack of sell-side analysts and economic uncertainty. Investors’ unrealistic expectations also hinder IPO success. A market recovery and lower valuations may be needed to revive IPO activity.

Despite the current IPO slump, some investors remain optimistic that the market will rebound in the second half of the year. A backlog of deals is waiting to go public once the market stabilizes. Lower valuations and market recovery may be necessary for IPOs to attract investors in the future.

Read more: The latest victim of Trump’s tariffs: IPOs