Yahoo Finance

But eToro is making its public debut on the Nasdaq. The stock surging after its initial public offering. This does come as fintech company Chime recently filed to go public as well. The recent activity signaling a sense of dare I say enthusiasm in the IPO market. Here to discuss remaker Securities managing director, Greg Martin. Greg, help me out here. A month ago I was talking to everyone about how the IPO market had dried up. Is it really just about where the S&P 500 sits, where you and I take our conversations?

Well, good to see you again. Thank you for having me. You know, it's it's been a roller coaster ride. Uh we thought the IPO window was going to reopen, uh when you know, core weave went public. Core weave was as you point out had a great earnings report and has traded up nicely since it went public just before the tariff trade. And then of course we had um you know, the trade wars that were announced in early April. We shelved three IPOs, you know, Klarna, um StubHub, and Chime, and Hinge Health actually another that had filed and was going to go on the road. Um the market's looking the market likes IPOs. Um you know, we're we're seeing very positive trading from the IPOs that that went out last year in the tech sector, and as you mentioned core weave. Um the market wants to see some stability. I think they're getting more and more comfortable about where the you know, the trade tariff wars are going to settle. Um and I think that's going to be good news. It'll provide a firm foundation for uh what is a very interesting slate of companies that will probably go public soon. So I I'm hopeful that we're going to start to see a resurgence in the IPO market based on what we've seen. It's not necessarily about the S&P 500, it's more about the stability of the overall market.

How how Greg would you characterize the pipeline right now? I mean, are there, you know, Greg are are there a significant number of companies kind of waiting in the wings, Greg? And and do they fall, you know, do you see them falling into certain categories more than others? Is it consumer, or is it enterprise? Just just intrigued to get your line of sight.

Yeah, the pipeline is very strong. I mean, we've got companies that historically would have been public a long time ago sitting in this pipeline. You know, I mentioned I mentioned Klarna, I mentioned StubHub. Figma is reportedly has just retained bankers. We saw Chime, uh you know, refile yesterday. Digital Health refile or Hinge Health refiled yesterday. Um so we have a very strong pipeline as you can, you know, see from those. And obviously eToro just priced today. Uh and we, you know, expect Circle to also refile. Uh so there's a lot of fintech companies in that group that I just mentioned. Um you know, Figma is a more of an enterprise software company. Um StubHub obviously is a ticket company that's, you know, been been public before, been private, back public. Um I I I think it's I I think there's a fairly broad-based group of companies. And then of course we're not even talking about, you know, the really big potential IPOs, whether it's Stripe or Databricks. Uh maybe we'll see Starlink from SpaceX, maybe we'll see Bite Dance once, you know, the the TikTok stuff gets sorted out. So there's a really good roster of potential pipeline. Um at this point I I wouldn't necessarily categorize it, but these are companies that are they're 10 billion plus in the private markets, um some of which are 100 billion plus in the private markets that historically would have already been public. So really strong pipeline.

Well, let's hit on eToro, obviously our latest IPO here that we want to talk about. And I know in your notes you compare it to the Israeli-based Robinhood. Taking a look at Robinhood shares just year to date, they're up 55%. To what extent do you see a read through of that kind of performance for anyone who's investing in eToro?

Well, I mean it tracks pretty closely with uh with with crypto. Um and both companies have significant crypto trading platforms. Um and of course you could you know, you could add Coinbase to that list of companies that are performing extremely well. Um so as we've seen crypto rise, you're seeing a lot more trading, and and the business model for for eToro and Robinhood and Coinbase is they make money when trades happen. And so the more you see trading happening and and coin and crypto is one big area, the more you're going to see uh the more you're going to see revenues rise, and you're more you're going to see those stocks rise. So I think I think it's not surprising that eToro is has priced well, has traded up, uh and obviously Robinhood and Coinbase are its two closest comps.