The IPO Market Is Heating Up. Just Ask Figma.

(Illustration by Elias Stein)

Unicorns may be mythical beasts, but multibillion-dollar start-ups are alive and well and running wild on Wall Street. Design software firm Figma is the latest company to make a splashy debut. It surged 250% from its initial-public-offering price when it began trading on July 31 and continued to rise a day later.

Figma’s explosive start follows strong performances by other recent IPOs, such as stablecoin company Circle Internet Group, cloud computing and artificial-intelligence firm CoreWeave, fintech Chime, and drone maker AIRO.

Created with Highcharts 9.0.1IP-Whoa!These are the five best performers of 2025.Gain from IPO priceSource: Renaissance CapitalNote: Price change as of midday 7/30; for IPOs raising at least $50M

Created with Highcharts 9.0.1Circle Internet Group / CRCLCoreWeave / CRWVKarman Space & Defense /​KRMNAscentage Pharma / AAPGAIRO / AIRO0%100200300400500600

Investors are clearly fascinated with companies that are expected to post hefty revenue gains at a time when tech and other momentum stocks are once again riding high. The Nasdaq Composite index isn’t far from record levels, buoyed by the strong performance of Magnificent Seven members Nvidia, Microsoft, and Meta Platforms.

Created with Highcharts 9.0.1Two SkyrocketsEven after pullbacks, Circle and Coreweave are the champs of the new boom.Price since first-day closeSource: FactSet

Created with Highcharts 9.0.1April 2025July050100150200250$300CoreWeaveCircle Internet Group

So what’s next? The IPO market could soon succumb to its typical late-summer slowdown, but don’t be surprised to see more companies looking to go public in the fall and into 2026. Matt Kennedy, senior IPO market strategist at Renaissance Capital, an IPO research and investing firm, said investors should keep an eye on space tech company Firefly Aerospace, which is expected to go public the week of Aug. 4, as well as buy now/pay later firm Klarna and ticket marketplace StubHub, which have already filed to go public.

Write to Paul R. La Monica at paul.lamonica@barrons.com

Last Week

Markets

The S&P 500 and the Nasdaq started the week extending their record runs. On Wednesday, the Federal Reserve kept interest rates unchanged. Two voting members dissented, a first in more than three decades. The economy expanded in the second quarter, with GDP rising a seasonally and inflation-adjusted 3% annual rate after contracting in the first quarter. Copper prices plunged after President Donald Trump announced 50% tariffs on some imports. On Friday, the markets swooned on Trump’s blitz of tariffs and a weak jobs report; he ordered his team to fire the top Bureau of Labor Statistics official. On the week, the Nasdaq lost 2.2%, the S&P declined 2.4%, and the Dow Jones Industrial Average were down 2.9%.

Companies

In a week of Big Tech earnings, Microsoft posted double-digit revenue growth in its Azure cloud business and Meta Platforms smashed Wall Street forecasts. A gunman killed four people on Monday in a Midtown Manhattan office building, including a Blackstone senior real estate executive. Exxon Mobil and Chevron both posted better-than-expected earnings.

Deals

Norfolk Southern and Union Pacific plan a merger that will ease coast-to-coast freight travel…Oilfield-services company Baker Hughes said it’s buying Chart Industries, which sells equipment for liquefied-natural-gas plants, for $13.6 billion…KKR acquired a majority stake in HealthCare Royalty Partners, which buys rights to pharmaceutical royalty streams.

Next Week

Monday 8/4

Tech and biotech firms kick off this week’s calendar. On Semiconductor, BioNTech, and Axsome Therapeutics will report results before the market opens. After the close, Palantir Technologies and Vertex Pharmaceuticals will release their latest results.

Tuesday 8/5

Key chip stocks headline Tuesday’s earnings wave. Advanced Micro Devices is scheduled to report fiscal second-quarter results after the market closes. Super Micro Computer will provide fourth-quarter and fiscal-year 2025 results.

Wednesday 8/6

Iconic American brands, both old and new, will keep earnings season rolling along on Wednesday. McDonald’s and Uber Technologies will report second-quarter results before the market opens. After the market’s close, Walt Disney will release its fiscal third-quarter results.

Thursday 8/7

The Federal Reserve reports consumer credit data for June, and the Department of Labor releases initial jobless claims for the week ending on Aug. 1.

The Numbers

$2 T

Likely revenue of the top six tech companies this year, equal to GDP of Russia, the 11th-largest economy.

14%

Increase in June-quarter sales of iPhones as some U.S. consumers rushed to buy ahead of tariffs.

30%

Portion of single-family home buyers who are investors looking to flip or rent, the highest share on record.

25%

Increase in assets in environmentally focused funds in the year through May, despite ESG’s fall from favor.

Email: editors@barrons.com