It’s a hot IPO summer as new listings make their long-awaited return to public markets. After a cool first half of 2025, the demand for Initial Public Offerings has exploded in Q3, with anticipated companies like Circle Internet Group Inc. (NYSE: CRCL) and CoreWeave Inc. (NASDAQ: CRWV) surpassing even the rosiest expectations upon their debut.
And it doesn’t appear that momentum is slowing as several more promising companies are unveiling their listings.
Factors Contributing to the IPO Rebound in Q2 2025
A range of factors has kept the IPO market subdued recently. Not only was the macro-environment poor in the first half of 2025 due to erratic trade policies, but private companies have been staying private longer than historical norms.
According to research from Morgan Stanley, companies are now staying private for nearly 11 years on average before going public, a significant increase over the seven-year average from 2014. Private companies aren’t scrutinized as closely as their publicly traded counterparts, and high rates have clogged the capital spigot over the last few years.
Couple these factors with the rise of private markets, and there simply isn’t the enthusiasm for ‘going public’ as there was in the past. Only 84 IPOs were issued in the first half of 2025, down from over 100 in the same period last year.
If there’s light at the end of the tunnel, it began shining earlier this summer. We’ve seen several new listings hit the market, and many have grown exponentially in the first day or week of trading. Three reasons for the turnaround include:
- Investors’ Appetite for New Issues: Of the 16 IPOs that have raised more than $50 million so far in 2025, nine of them occurred in June. Demand for IPOs has returned in a big way, and previously private companies are striking while the investment iron is hot.
- Momentum from Specific Sectors and Industries: You can probably guess which sectors we mean here. Artificial intelligence and its adjacent businesses continue to dominate the stock market, with some speculation in crypto and its adjacent businesses. CoreWeave and Circle soared during their first week of trading, showing investors are eager to throw money at anything AI and crypto-related right now.
- Anticipation of Accommodative Monetary Policy: A slowing job market is bad news for the economy, but if the Federal Reserve resumes its rate-cutting cycle in September, it could create cheaper capital for IPOs. High rates have limited the demand for new issues, and a reduction before the end of the year could further juice this hot market.
2 New Issues Garnering Investor Attention This Month
The first wave of big IPOs this year saw companies like CoreWeave and Circle achieve impressive gains before volatility muted the fun. But July was another banner month for new issues; here are two debuting stocks to keep on your radar.
Figma: Creating a Collaborative Environment for Design
The biggest IPO debut since CoreWeave, Figma Inc. (NYSE: FIG), got off to an absurd start even before shares went public. After initially looking at an opening price between $25 – $28, the stock debuted at $33 and quickly rose toward $100 before hitting the exchanges. By the end of the first day, FIG shares were trading at $115, a shocking gain of more than 200% from the opening price.
Figma has the financial data to back up its exciting first-week performance. The company has more than 13 million active users and earned more than $228 million in revenue in Q1 2025 (a 46% year-over-year (YOY) increase), with a net income of $44.9 million.
FIG’s market cap surged over $67 billion after the first day of trading, although a 35% pullback sent shares back under $80 in the subsequent five sessions.
Figma’s unique platform allows designers and professionals to collaborate on different interfaces in real-time, and with 85% of current customers outside the United States, the growth prospects remain strong despite the hefty valuation at about 40x sales.
Figma’s impressive list of corporate clients includes Stripe, Duolingo, and Netflix Inc. (NASDAQ: NFLX).
MNTN: First Mover Advantage in a New Advertising Space
If you don’t mind seeing Ryan Reynolds in the C-suite and have an interest in innovative AI-based advertising companies, MNTN Inc. (NYSE: MNTN) could be an intriguing investment.
Pronounced ‘Mountain,’ the company has a platform called Performance TV, which helps clients create specific, tailored advertising plans targeting viewers based on their Connected TV watching habits and demographics. Connected TV is simply any TV with an internet connection, such as a Roku TV or Amazon Fire TV Stick.
MNTN reported its first earnings release as a public company on August 5, which missed analysts’ expectations on EPS but surpassed revenue estimates by 6%. The $68.46 million in revenue represented a 25% YOY increase, and the company has a distinct first-mover advantage in this space thanks to partnerships with Peacock, ESPN, CBS, and Fox.
MarketBeat is already tracking 10 analysts covering the stock, with two Hold ratings and eight Buy ratings. The consensus price target is $29.90, which suggests upside of nearly 20% from current prices.
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