US Presidential Election Impact On IPO Market Timing
Portfolio Pulse from Michael Cohen
The upcoming U.S. presidential election in November is expected to temporarily slow down the IPO market, with market advisors and investors predicting a brief pause around the election date. Ernst & Young and Deloitte & Touche LLP suggest some IPOs may adjust their timing, either moving up their schedules or delaying until late 2024 or 2025. The IPO market has seen over $13.7 billion raised in the U.S. this year, though it remains 92% lower than the record-breaking year of 2021. Companies like Trump Media & Technology Group and Reddit Inc are navigating the complexities of this period, facing volatility and market scrutiny.
April 30, 2024 | 11:36 am
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NEGATIVE IMPACT
Trump Media & Technology Group, since its Nasdaq debut, has experienced significant stock volatility, highlighting the challenges IPOs face in politically sensitive periods.
Given the politically sensitive nature of Trump Media & Technology Group and the general election's impact on market sentiment, the company's stock is likely to experience increased volatility and potentially downward pressure in the short term.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 80
NEGATIVE IMPACT
Reddit Inc faces skepticism from U.S. brokerages regarding its profitability and the risk of becoming a 'meme stock', which could be exacerbated by the election period's market volatility.
Reddit Inc's IPO is under scrutiny for its profitability and potential as a 'meme stock'. The election period's volatility may further impact its stock negatively, as market uncertainty typically heightens during such times.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 80