Klarna and StubHub have decided to postpone their initial public offering (IPO) plans in response to the recent stock market downturn triggered by President Donald Trump's tariffs. The companies were set to present to investors next week but have halted their roadshows.
Sources indicated that the decision to delay the IPOs stems from the substantial $6 trillion loss suffered by the stock market following Trump's tariff announcements. The companies are currently unsure about a timeline for resuming their plans to go public, as per an undisclosed source who spoke to CNBC.
The Wall Street Journal reported that StubHub had intended to hold a roadshow next week, while Klarna had scheduled to pitch to investors during the same period. Both companies have declined requests from Fortune for comments on the situation.
Concerns were raised within StubHub that proceeding with the IPO amidst the market instability could convey desperation, and that investors may not have ample time to engage with the company amid the ongoing financial uncertainties.
This delay marks StubHub's second postponement of its IPO, with a previous instance occurring last summer due to unfavorable new-listings market conditions.
StubHub's planned listing on the New York Stock Exchange under the ticker symbol STUB aimed for a valuation of at least $16.5 billion. In their financial filing, StubHub reported a loss of $2.8 million on revenue of $1.77 billion in 2024, attributing the loss to increased expenses driven by sales and advertising endeavors.
Klarna, known for its buy now, pay later services, was aiming for a $15 billion valuation in its intended listing on the NYSE under the ticker symbol KLAR. The company recently partnered with DoorDash to introduce installment payment options for meal deliveries.
Klarna had previously raised concerns about the impact of tariffs on its growth potential, citing potential risks in their IPO filing regarding changes in trade policies that could affect consumer spending and merchants' financial well-being.
The ongoing challenges in the market have led both Klarna and StubHub to reevaluate their IPO plans amid the economic uncertainties triggered by recent tariff developments.