Greetings, Term Sheeters. This is finance reporter Luisa Beltran, subbing for Allie.
After Circle’s standout IPO performance last week, all eyes are turning to Chime Financial. The well-known neobank is scheduled to begin trading on Thursday and could benefit from a rush of IPO excitement.
Retail investors often get shut out of the IPO market, but CoreWeave shows that there are still opportunities to invest in undervalued companies, said Matt Kennedy, senior IPO strategist at Renaissance Capital, a provider of pre-IPO research that manages two IPO-focused ETFs (NYSE: IPO, IPOS). (Shareholders who bought CoreWeave on March 31, when the stock closed at $37.08, have seen the shares soar more than 317% since then.) “Even in a hot area like AI there can be opportunities that fly under the radar,” he said.
Circle delivered the “the best first day pop for a $1 billion IPO in our records. That’s quite an achievement,” Kennedy said.
FOMO, or fear of missing out, will also help Chime. The fintech has “brand recognition, growth and a lot more people are following the IPO market now than a month ago. Once traders start to see pops are possible that will get people interested,” Kennedy said.
See you tomorrow,
