The Cloud Stock Rally And The Potential Impact On IPOs In 2024


As 2023 draws to a close, the resurgence of value in a crucial group of tech companies following the summer rally is fueling optimism for a robust IPO cycle in early 2024. The renewed strength in cloud stocks is signaling positive developments for the market.

Key Takeaway

The resurgence of cloud stocks could pave the way for a more active IPO market in 2024, offering potential opportunities for tech companies considering public offerings.

A Promising Turn of Events

Following a period of relative stagnation, the recent resurgence in the value of cloud stocks has sparked hope for a more active IPO market in the coming year. This shift in momentum has the potential to reinvigorate the IPO landscape and create opportunities for tech companies looking to go public.

Recapping Recent IPO Activity

Earlier this year, the IPO market saw the debut of three notable companies: Arm, Instacart, and Klaviyo. While these IPOs marked a significant moment for liquidity, their impact on inspiring a wave of tech companies to pursue public offerings fell short of expectations.

Although Arm’s stock has exhibited strong performance, trading at $71.30 per share, a notable increase from its $51 list price, Klaviyo and Instacart have faced more modest outcomes. Klaviyo’s shares are trading slightly above its IPO price, while Instacart’s stock is currently trading lower than its listing price.

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