Hey, did you catch the latest buzz? The scene for new companies going public, you know, the Initial Public Offering (IPO) shindig, is, well, not so hot right now. And who spilled the beans? Good ol’ KPMG! They shouted out loud and clear on Tuesday that sky-high interest rates (yeah, you can thank the Federal Reserve for that!) and a not-so-friendly money scene are the party crashers.
Take Arm Holdings (NASDAQ:ARM) and Instacart by Maplebear (NASDAQ:CART) as examples. They jumped into the stock market, hoping for fireworks, but soon enough, they hit a bump. The two giants raked in a whopping $18 billion this year, which, hold onto your hats, is a steep fall from the jaw-dropping $300 billion in 2021. But, hey, can we blame them? It’s tough out there!
Then you’ve got the brainiacs from Gordon Haskett, scratching their heads, looking into what’s tripping up not only these two but other big shots like DoorDash (NASDAQ:DASH), Uber Technologies (NYSE:UBER), Amazon.com (NASDAQ:AMZN), and Target. Get this: the dough that Arm’s making from our smartphone obsession is shaking their stocks like a leaf in the wind.
And Instacart? They’re hoping to bag a cool $2.95 billion by the year’s end. But, like a ton of other folks in their shoes, they’re trying to wade through this IPO mud pit, all thanks to big-league economic troubles they can’t do diddly-squat about. It’s a real noodle-scratcher, showing just how topsy-turvy the world of IPOs has become.
In a nutshell? Things are shakier than a jelly in an earthquake for companies hoping to make a splash in the stock market. And, buddy, that says a lot about the wild, wild world of cash, stocks, and, well, just the way the cookie crumbles.
This piece? Well, a genius AI whipped it up and a human gave it a once-over. Got questions? Check our T&C!