Circle, Klarna, StubHub reportedly pause IPO plans in reaction to Trump tariffs

Leading fintech solutions provider Klarna Group, ticket platform StubHub holdings, and crypto company Circle are reportedly putting off plans for initial public offerings (IPOs), having initially filed for IPO with the Securities and Exchange Commission (SEC) of the United States in March. 

According to information gathered by The Wall Street Journal from people close to the matter, Klarna and StubHub are pausing their plans for IPO after filing separately with the SEC in March. Their decision to delay their public offerings is reportedly due to President Trump’s Wednesday announcement of tariffs on more than 180 trade partners, further exacerbating an already poorly performing US stock market.

Klarna, StubHub and Circle reassess timing

Klarna, best known for its “buy now, pay later” checkout solution, was aiming for a $15 billion valuation. After a major funding round in 2022, the company was valued at $6.7 billion.

Its already listed competitor in the US, Affirm, has reportedly fallen by 46% on the stock market this year. This has also affected its market valuation as it currently sits at $12 billion, which is $3 billion short of what Klarna is targeting for its IPO.

Klarna and StubHub had planned to list on the New York Stock Exchange (NYSE) under the tickers KLAR and STUB.

However, this isn’t the first time StubHub is delaying its IPO as it first applied for an IPO in 2024. However, the company didn’t go through because it wasn’t sure of how such a launch would be beneficial. The company which has backings from JPMorgan and Goldman Sachs sought a valuation of roughly $16.5 billion.

Circle , known for issuing USDC, the world’s second-largest stablecoin by market capitalization, filed for an IPO with the SEC on April 1, planning to list on the NYSE. The company has JPMorgan Chase and Citigroup serving as underwriters. It’s reportedly going for a valuation of $5 billion.

This makes it the second time Circle is attempting to go public after its arrangement with a special purpose acquisition company (SPAC) fell through to regulatory hurdles in 2022.

This new attempt to launch is quite ambitious, especially when the market is currently volatile. However, it seems Circle, which plans to trade under the ticker CRCL, may be considering stepping on the brakes on those plans for now.

Tariffs shake market confidence as recent IPOs sent mixed signals

Since Trump’s “Liberation Day” announcement, the Dow Jones industrial average has gone down by 4.4%. The S&P 500 and Nasdaq have seen 5% and 6% drops respectively. For better context, each index has lost over 10% of the record numbers they hit recently and has dipped into the correction zone.

Nasdaq is already experiencing a full scale bear market as it traded below 20% of the all-time figures it hit in December 2024.

According to analysts from JPMorgan, the chances of the global economy entering a recession as a result of these actions are 60%.

Given the grim state of the market, it’s understandable why Klarna, StubHub, Circle and any other company would want to hold off on an IPO especially when there’s a bear market with lots of uncertainties.

However, other companies have taken the risk of launching between last and this week — CoreWeave was one of them.

The artificial intelligence firm had its market debut last week, however, its stock has been relatively volatile. While CoreWeave stock is up 23% since the launch, it had experienced a 12% decline on Friday following market reactions to the tariffs.

Newsmax also launched this week Monday on the NYSE and saw its stocks skyrocket by 700% on the day of its debut. With a market cap of $30 billion, it became more valuable than Fox Corp. as of Tuesday. Since then, the value has seen a steady decline, nosediving from about $265 to just over $48.

Several analysts across various industries expect those tariffs to increase prices for numerous goods, including luxury goods, foreign cars, champagne, chocolate, and coffee, among others, as trade tensions deepen with Southeast Asian and European partners.

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