Stripe was founded by Irish brothers John and Patrick Collision in 2010 and has been captivating would-be investors since.
But today, there’s one huge question still to be answered…
This article was originally written by MyWallSt. Read more insights from the MyWallSt team here.
When is Stripe going public?
The payments giant was valued at $95bn following its last funding round in March 2021, but reports from Forbes have suggested that the actual value is closer to $115bn. This represents value growth of 250% on the low end in just a year — not too shabby.
Speculation was rife all throughout last year of an impending public debut, but 2021 came and went without any movement from Stripe. Now, the IPO market has all but dried up with inflation fears and widespread volatility forcing companies to rethink listing. There were 1,035 IPOs launched in the U.S last year alone — so far this year, we’ve seen less than 80.
Last year, Stripe lawyered up in preparation for its public debut. The payment solutions leader hired law firm Cleary Gottlieb Steen & Hamilton, who which specialises in the due diligence required to help a company go public. Things have remained muted since, with Stripe notably tight-lipped about any impending debut.
A direct listing is likely, as Stripe is in the enviable position of not needing to use an IPO to raise capital. This allows it to avoid much of the volatility associated with an IPO — something that could be extremely important given the current market situation.
With reported 2020 revenue of $7.4bn, a war chest of available cash, and investors clawing at the gates to snag a piece of the world’s second most valuable unicorn — a public debut just can’t come quick enough.
MyWallSt gives you access to over 100 stock picks, as well as providing free analysis, multiple podcasts, customised market updates straight to your phone, and much more. Sign up for free today.
Disclaimer Past performance is not a reliable indicator of future results.
CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.
CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.
*Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.