A low-interest-rate environment and low-cost options to go public have driven a boom in the U.S. IPO market over the past year. And with rising investor interest in newly listed companies, Wall Street analysts expect recently listed stocks Coinbase (COIN), C3.ai (AI), and Similarweb (NYSE:SMWB) to deliver solid returns in the near term. So, let’s take a close look at these names.While most of the economies were severely affected by the COVID-19 pandemic last year, it was a great year for IPOs, which were driven by a low-interest-rate environment and the low-cost listing options, such as the special purpose acquisition companies (SPACs) route. In total, 480 companies went public in the U.S. last year. The IPO transaction rate has been even higher so far this year, with 536 IPOs already executed, according to Stock Analysis.
Because the Fed is not expected to increase benchmark interest rates anytime soon, more companies are expected to go public this year. Investors’ increasing interest in IPO stocks is evident in the Renaissance IPO ETF’s (IPO) 10.4% gains over the past month compared to the SPDR S&P 500 Trust ETF’s (SPY) 1.4% returns.
Given the IPO boom, Wall Street believes Coinbase Global, Inc. (COIN), C3.ai, Inc. (AI), and Similarweb Ltd. (SMWB), which went public recently, could rally robustly in the coming months.