Prediction: 3 Highly Anticipated IPO Stocks Will Hit the Market in 2025

The stock market just had a banner year. The S&P 500 (SNPINDEX: ^GSPC) advanced 23% in 2024, marking the second consecutive year its annual return exceeded 20%. The last time the benchmark index accomplished the same feat was 1998.

Not surprisingly, initial public offerings (IPOs) showed signs of rebounding last year. To elaborate, more than 400 U.S. companies went public in 2021, but many investors lost their appetites for risk shortly thereafter as economic conditions worsened. The number of U.S. IPOs fell to 90 in 2022, and the market remained subdued in 2023.

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However, 121 U.S. companies went public through the third quarter of 2024, which was more than the 101 IPOs during the same period in the previous year. Many analysts expect that momentum to carry into 2025, potentially setting the stage for Chime, Databricks, and Stripe to go public.

Here's what investors should know about those highly anticipated IPO stocks.

Image source: Getty Images.

1. Chime

Chime is a fintech company founded in 2013 on the premise that banking services should be helpful, easy, and free. Its product portfolio includes no-fee checking accounts and high-yield savings accounts, as well as debit cards and secured credit cards (which are backed by cash deposits). The company also provides fee-free overdraft protection on up to $200 through a product called SpotMe.

Chime raised $750 million during its most recent funding round, which took place in August 2021. That valued the fintech company at approximately $25 billion, according to The Wall Street Journal. No funding rounds have taken place since, but Forge Global -- a platform that lets investors buy and sell shares in private (pre-IPO) companies -- currently lists its value around the same level.

Importantly, some analysts expected Chime to go public in early 2022, but the IPO never materialized due to the challenging market environment created by high inflation and rising interest rates. However, the company reportedly plans to make its public debut in 2025, according to Bloomberg, though nothing is set in stone.

2. Databricks

Databricks is a data analytics software company founded in 2013. Earlier this year, IT consultancy Gartner recognized the company as a leader in data science and machine learning. In fact, the report suggests Databricks is the only software vendor with tools comparable to those offered by Amazon Web Services, Microsoft Azure, and Alphabet's Google Cloud Platform. That connection to the artificial intelligence boom could make the stock a hot-ticket item when it hits the market.

Databricks raised $10 billion in its latest funding round, which took place in December 2024. That valued the company at $62 billion.

The recency of that funding round casts doubt about whether Databricks will complete its IPO this year. CEO Ali Ghodsi hasn't ruled out the possibility, but he also told Axios the IPO might happen in 2026, instead. Either way, investors should keep an eye on this company.

3. Stripe

Stripe is a fintech company founded in 2010. Its platform lets businesses accept payment cards and digital wallets online and in person. The company also supports e-commerce marketplaces with tools for verifying merchant identities, accepting customer payments, and issuing payouts to sellers.

Stripe competes against other payment processors like PayPal and Adyen, and its list of customers includes high-profile companies like Amazon, Shopify, and Instacart, among many others. Earlier this year, Stripe and certain investors let employees cash out stock in a deal that valued the company at $65 billion, according to The Wall Street Journal.

Stripe isn't a public company, so it's not subject to the same reporting requirements as its public competitors. But its total payment volume increased 23% in 2023, according to management.

The company also said in its latest annual letter that it "was robustly cash flow positive in 2023 and expects to be again in 2024." That could make the stock particularly attractive to investors -- especially those who are leery of cash-burning companies -- when it eventually hits the market.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon, PayPal, and Shopify. The Motley Fool has positions in and recommends Adyen, Alphabet, Amazon, Microsoft, PayPal, and Shopify. The Motley Fool recommends Gartner and Instacart and recommends the following options: long January 2026 $395 calls on Microsoft, long January 2027 $42.50 calls on PayPal, short January 2026 $405 calls on Microsoft, and short March 2025 $85 calls on PayPal. The Motley Fool has a disclosure policy.