US IPO Weekly Winners & Losers

All the pieces are now in place for some summer IPO activity.

• Strong IPO performance in May (IPO Index +7.6%).

• Healthy jobs numbers point to a solid macro environment.

• An expected pause in Fed rate hikes this month.

• VIX Volatility Index at its lowest in over three years.

• US banking turmoil further in the rear-view mirror.

No pricings or launches this past week amid the US debt ceiling showdown, but now that’s been resolved as well.

For more insights, our May 2023 IPO Market Update is a must-read for anyone in the space. We also analyzed our database of 400+ de-SPACs from recent years and highlighted 15 that were sizable, profitable, growing, and above offer. Both are exclusive to IPO Pro.

For anyone looking to add AI to their portfolio, IPOs are a good place to start the search. Most ambitious firms are exploring AI, ours included, but IPOs are the main source of public companies purpose-built to commercialize AI products. Snowflake, Palantir, and UiPath are a few notable AI plays in our IPO Index, all of which have risen considerably this year. Of course, try to keep a clear head amid the hype and focus on results over promises.

The IPO market leapt +5.8% this week, triple the S&P 500’s +1.8%. That further widens the IPO market’s YTD alpha (+24.3% vs. +11.5%). IPO winners were led by data infrastructure company Confluent (+20.4%), which got a boost after Needham initiated coverage with a Buy. Cybersecurity firm SentinelOne was one of the few losers, off -34.9% after lowering guidance.