Topline
Plans for Klarna Group and StubHub Holdings to go public have been paused, as both companies delayed their debuts after far-reaching tariffs announced by President Donald Trump earlier this week sparked a broader market selloff.
Far-reaching reciprocal tariffs for U.S. trade partners were announced earlier this week.
Key Facts
The companies cited instability in the stock market, and neither company has a timeline for when they will pursue an offering, people with knowledge of the plans for both companies told CNBC and The Wall Street Journal.
StubHub, which filed for an IPO in March, decided to delay a meeting scheduled next week with prospective investors after the S&P 500 dropped by nearly 5% on Thursday, and the company was concerned about launching an IPO while the U.S. markets were volatile, the Journal reported.
Klarna was scheduled to meet with investors next week, but similarly decided to postpone those plans because of volatile markets, CNBC reported.
Neither Klarna nor StubHub immediately responded to requests for comment.
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Surprising Fact
StubHub previously delayed an IPO in 2024, after the company reportedly couldn’t gauge whether a launch would be beneficial. The company initially pushed back plans for a listing until after Labor Day, and sought a valuation of at least $16.5 billion with backing from JPMorgan and Goldman Sachs.
How Have Trump’s Tariffs Impacted U.s. Markets?
The Dow Jones Industrial Average dropped 4.4%, or about 1,770 points, by Friday afternoon, while the S&P 500 (5%) and tech-heavy Nasdaq (6%) also dropped for the third-straight day. Each index is down at least 10% from their record levels set in recent months—putting them in correction territory—while the Nasdaq entered a bear market as it traded more than 20% below its all-time high set in December. There’s a 60% chance the global economy enters a recession this year, JPMorgan economists wrote in a note Thursday.
What Other Ipos Have Debuted Recently?
The artificial intelligence firm CoreWeave debuted last week, but trading in the company’s stock has been largely volatile. Shares in CoreWeave dropped by more than 12% on Friday, though the stock is up 23% since its debut. The right-wing media company Newsmax debuted on the New York Stock Exchange on Monday and quickly soared, with shares trading up by more than 700% that day alone. Newsmax subsequently became more valuable than Fox Corp. as shares traded up again Tuesday, increasing the company’s market cap to just below $30 billion. Shares in Newsmax then dropped in value through Friday, as the stock fell from a high of about $265 to just over $48.
Key Background
Both Klarna and StubHub filed IPO registration forms with the Securities and Exchange Commission in March. Klarna, a Swedish firm offering “buy now, pay later” loan options, reported a 24% increase in revenue through 2024, while ticket resale platform StubHub revealed a 30% revenue increase. Goldman Sachs backed offerings for Klarna and StubHub, as the companies planned to list on the NYSE under the tickers KLAR and STUB. Their decision to postpone their IPOs follows what Trump called “Liberation Day” on Wednesday, during which the U.S. imposed reciprocal tariffs on more than 180 trade partners. Analysts across several industries expect those tariffs to increase prices for numerous goods, including new cars, wine, chocolate and coffee, among others.
Further Reading
Klarna, StubHub Delay IPOs As Trump’s Tariffs Roil Markets (CNBC)
Klarna Pauses Planned IPO In Wake Of Trump Tariff Announcement (Wall Street Journal)
