Top IPO Stocks Worth Monitoring in the 2025 Market
Searching for blazing-hot growth stocks? Look no further than initial public offerings (IPOs)! These newly public companies often enter the market with sky-high expectations and hefty price tags, making them appealing choices for investors.Even some of the world's most valuable companies, like Amazon and Apple, began their journey as IPOs, turning early investors into millionaires.
So what exactly is an IPO? An IPO is the process by which a privately held company makes its shares available to the public and lists on a stock exchange, enabling them to be bought and sold.
Recent IPOs
After a busy period during the pandemic, the IPO market cooled down in 2022 as tech stocks plummeted and interest rates climbed. However, as the Nasdaq rebounded in 2023 and 2024, several new IPOs made their debuts, including:
1. Reddit
After a long wait, Reddit (NASDAQ: RDDT) finally went public in March 2024, capping off almost 20 years of operation. Despite turning profitable that same year, the social media platform's historical lack of profits signals that it will need to deliver on its growth plan, which includes advertising revenue, AI-related licensing revenue, and future businesses like e-commerce, to satisfy investors.
2. Serve Robotics
Automation is all the rage, with companies like Tesla pushing the envelope in autonomous vehicles and robots. Serve Robotics (SERV -3.28%) capitalized on this trend, focusing on food delivery robots. With backing from high-profile companies like Nvidia and Uber, Serve attracts top-notch customers such as Shake Shack, Pizza Hut, and Uber Eats. Although small, the company sees an opportunity to disrupt short-distance deliveries, especially with more than 100 robots in operation as of its IPO.
3. ServiceTitan
If you're interested in software-as-a-service (SaaS) stocks, ServiceTitan (TTAN -2.24%) could be the SaaS leader you've been searching for. A tech company specializing in cloud-based software for trades such as plumbing, HVAC, and electrical services, ServiceTitan delivers solid growth, with a 24% revenue increase in the 12 months ended July 31, 2024. Despite being unprofitable on a generally accepted accounting principles (GAAP) basis, ServiceTitan's IPO was a major event, briefly topping a $10 billion market cap after its December 2024 IPO.
Related Investing Topics
If you're looking for more investing tips and insights, check out our guides on entertaining, media, and esports stocks for 2025. And don't forget to keep an eye on these IPOs to watch in 2025.
FAQs
What is an IPO in stocks?
An IPO, or initial public offering, is the process by which a company makes its shares available to the public for the first time by listing on a stock exchange.
Is it a good idea to buy IPO stocks?.
IPO stocks can be riskier than the broader stock market because they are new issues with unproven track records. While some companies become huge successes, others may turn out to be duds.
What's the best IPO to buy now?
The "best" IPO to buy depends on a variety of factors, including the company's financial health, market conditions, and investment goals. It's crucial to do thorough research and consider seeking advice from a financial advisor before making any investment decisions.
In the context of investing and finance, buying shares of a newly public company like Reddit during its IPO in 2024 could provide potential high returns, even if the company has a history of lackluster profits. Investors should keep an eye on upcoming IPOs in 2025, such as those in the entertainment, media, and esports sectors, as they may present lucrative opportunities.
In order to successfully participate in IPOs and maximize returns, it's essential to thoroughly research each opportunity, considering factors such as the company's financial health, market conditions, and investment goals. Seeking advice from a financial advisor can also prove beneficial in navigating the IPO market and making informed investment decisions.
