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After the market roared in Q4 2024 with the new administration, Q1 has experienced volatility largely due to uncertainties related to tariffs.
According to a recent conversation we had with Nasdaq, institutional investors are taking a “wait and see” approach to public markets and issuances as a result of the tariff-inspired uncertainty.
In the past month, CoreWeave and Klarna have both filed publicly with the SEC, indicating their intent to list in the coming weeks. Two distinctly different businesses with very different customer bases have all of us – institutional investors, VCs, advisors, media, etc. – watching closely.
Additionally, Nasdaq mentioned that investors are viewing each as bellwethers for the tech IPO market. And as with previous IPO windows, companies that are prepared, strategically and financially, are soon to follow suit should CoreWeave and Klarna price strongly and are received well on public markets.
With all that said, both CoreWeave and Klarna have each done similar things that are markedly different than companies that listed in previous IPO windows, and the media impact is particularly interesting. One week after filing its S-1, CoreWeave announced a massive partnership with OpenAI. This is interesting for two reasons: (1) the partnership directly addressed revenue concentration with Microsoft, which was the most discussed critique post-filing and (2) the announcement came after the public flip, which is unusual because that typically results in companies being conservatively quiet. This strategic announcement drove significant media coverage, most of which noted the company addressing the Microsoft question before their roadshow. We are watching this particularly closely as it enters a new grey area related to SEC guidelines and are keen to see what it means for communications professionals.
In a similar vein, Klarna announced a huge new customer, Wal-Mart, that is not only a major US customer but also displaces one of their biggest US-based rivals. As with CoreWeave, this announcement came a week after its public filing.
These two companies present a must-watch situation for investors and communications professionals alike.
And for those companies anxiously watching their debuts, being prepared to navigate both a listing and the market dynamics is imperative. As Nasdaq noted to us last week, those that leverage strategic advisors early will be best situated to maximize their IPO opportunity. If your company is currently on the pathway to IPO or considering a start to your journey and you want to develop breakthrough strategies to maximize impact, please get in touch!
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