Some upcoming tech IPOs have reportedly sparked uneasy optimism among investors despite tariff-related turmoil.
As the Financial Times (FT) reported Wednesday (March 19), initial public offerings (IPOs) from the likes of Klarna and CoreWeave have fostered hopes that the years-long drought in high-profile tech listings may be at an end.
CoreWeave, an artificial intelligence (AI) data center operator, plans to raise $4 billion at a valuation of more than $35 billion, making it the biggest stock market debut for a tech company this year, the FT said. Klarna, the Swedish payments company known for its buy now, pay later (BNPL) offering, hopes to raise more than $1 billion at a $15 billion valuation.
A senior investment banker close to both of these IPOs told the FT he expected these listings, along with maybe three others, to arrive as soon as next month. Another possible IPO: retail trading site eToro, which announced last month it had filed to list in New York, targeting a value of upwards of $5 billion.
The FT report points to another factor raising investors’ hopes of a better market for tech deals: Google’s plan — announced this week — to acquire cybersecurity firm Wiz for $32 billion.
At the same time, the report notes, investors are also expressing increased caution following a market shakeup driven by fears of the economic fallout of President Donald Trump’s tariff plans.
And as noted here earlier this week, those fears extend beyond just Wall Street, with PYMNTS Intelligence research showing that just a small portion of small and medium-sized businesses (SMBs) think the tariffs will have a positive impact.
That data shows that 72% of SMBs see tariffs leading to higher prices, a figure that rises to 78% among business owners who were “very knowledgeable” about Trump’s trade policies. Around a third of SMBs think the tariffs will cause product quality to deteriorate, while 74% of the “very knowledgeable” group is worried about shortages.
“In other words, it will be harder to produce goods, there will be fewer of them to offer end customers, and what is on offer will be of relatively poor,” PYMNTS wrote.
“And that poses the question as to whether consumers will open their wallets. The same report shows that roughly 45% of consumers see a negative impact on their personal finances from tariffs, and 35% see an equally positive/negative scenario.”
