5-4-2025 – Three prominent firms—Klarna Group, StubHub Holdings, and Circle—have reportedly decided to put their ambitions of floating on the stock market on hold. These leading players in fintech, ticketing, and cryptocurrency had each lodged paperwork with the United States’ Securities and Exchange Commission (SEC) in March, eyeing a debut on the New York Stock Exchange. Yet, fresh insights from sources speaking to The Wall Street Journal suggest that a dramatic shift in the economic landscape has prompted a rethink.
The catalyst for this pause appears to be President Trump’s bold declaration on Wednesday, unveiling sweeping tariffs targeting over 180 trading partners. This move has sent shockwaves through an already fragile US stock market, deepening uncertainty and rattling investor confidence. With the Dow Jones Industrial Average shedding 4.4%, the S&P 500 down by 5%, and Nasdaq tumbling 6%, the indices have slipped into correction territory—each more than 10% off their recent peaks. Nasdaq, in particular, has crossed into a bear market, trading over 20% below its December 2024 high. Analysts at JPMorgan now estimate a 60% likelihood of a global recession, a sobering backdrop that explains the companies’ caution.
Klarna, a trailblazer in the “buy now, pay later” sector, had set its sights on a $15 billion valuation for its listing under the ticker KLAR. This ambition followed a 2022 funding round that pegged its worth at $6.7 billion. However, the struggles of its publicly traded US rival, Affirm—whose shares have plummeted 46% this year, dragging its valuation to $12 billion—may have given Klarna pause. The gap between Affirm’s current standing and Klarna’s target underscores the treacherous conditions for fintech firms seeking to go public.
Meanwhile, StubHub, a heavyweight in the ticket resale market, is no stranger to deferred dreams. Backed by financial giants JPMorgan and Goldman Sachs, the company aimed for a $16.5 billion valuation under the ticker STUB. This marks its second retreat from an IPO, having first tested the waters in 2024 only to pull back amid doubts over the launch’s merits. Circle, the issuer of USDC—the world’s second-largest stablecoin—filed its SEC application on April 1, targeting a $5 billion valuation with the ticker CRCL. Supported by JPMorgan Chase and Citigroup, this is Circle’s second stab at going public, following a failed 2022 attempt via a special purpose acquisition company, thwarted by regulatory obstacles.
The broader market’s woes come as recent IPOs paint a mixed picture. Artificial intelligence outfit CoreWeave braved a debut last week, and while its shares have climbed 23% overall, a 12% drop on Friday reflected tariff-related jitters. In contrast, Newsmax stormed onto the NYSE this Monday, its stock soaring 700% on day one to reach a $30 billion market cap—surpassing Fox Corp. Yet, that triumph was short-lived, with its value crashing from $265 to just over $48 in subsequent days.
Trump’s tariff announcement has not only unsettled Wall Street but also raised the spectre of pricier goods—from luxury items and foreign cars to champagne, chocolate, and coffee—as trade frictions intensify with Southeast Asia and Europe.
