What is an IPO in stocks?

An IPO stands for initial public offering. It refers to a company making its shares available for public ownership and trading. When the stock IPOs, it lists on a stock exchange and begins trading.

What's the best IPO to buy now?

Figma has pulled back to below its IPO price and looks attractive as it has stepped up investments in AI. Following the boom in chip demand, there should be growth in AI-based software stocks as well, and Figma looks poised to be a winner there.

Should I invest in IPO stocks?

Maybe. It depends upon your level of risk tolerance, investing horizon, ability to maintain realistic expectations about returns, and a few other factors. If you're considering participating in an IPO, you must be aware that they're among the riskier moves you can make as an investor. That's not necessarily a bad thing. After all, getting in on the ground floor before the stock begins trading gives you the opportunity to maximize your return on an individual stock, as some stocks never fall back to their IPO price. Alternatively, these stocks may underperform because they have yet to be tested in the stock market, and IPO stocks are often money-losing start-ups to begin with, meaning they're already riskier than a typical blue chip stock.

What companies went public in 2025?

Dozens of companies went public in 2025. Among the largest ones were Venture Global (NYSE:VG), an oil and gas company, Smithfield Foods (NASDAQ:SFD), a meat processor, and Flowco Holdings (NYSE:FLOC), an oil and gas services company.

How to buy an IPO before it goes public?

Buying an IPO before it goes public is not always easy. You'll need to check with your brokerage on their requirements, then, if you qualify, place an order. If your offer price is high enough and there is enough supply to meet your order, it will get filled.

Do IPO investments offer higher returns?

IPO investments can offer high returns, but overall, IPO stocks tend to underperform the market in their first few years. This is because IPO stocks are often unprofitable, and because the lockup effect, meaning the impact of insiders selling their shares, can create downward pressure on the stock.

Best IPO Stocks to Buy in 2026: Latest Stocks to Watch

Best IPO Stocks to Buy in 2026: Latest Upcoming Stocks to Watch

By Jeremy Bowman – Updated Oct 6, 2026 at 12:13 AM EST | Fact-checked by Frank Bass

Key Points

SpaceX's IPO raised $75 billion, setting a record and valuing the company at $1.77 trillion.
Cerebras Systems saw its stock surge initially post-IPO, fueled by demand in AI technology.
OpenAI plans to go public in 2027, aiming to capitalize on its leadership in generative AI.

If you're hunting for high-growth stocks, initial public offerings (IPOs) are one of the best places to look. Some of the most valuable companies in the world were once freshly minted public offerings, and investors who spotted them early made a fortune.

But not every IPO is a winner. Volatility is high in IPO stocks, track records are short, and enthusiasm can send valuations to irrational heights fast. Here's what's worth your attention right now.

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Top recent IPO stocks (2025-2026)

Ticker Information Table
Name and ticker	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Dividend yield	Industry
Space Exploration Technologies (NASDAQ:SPCX)	$2.3 trillion	0.00%	Diversified Telecommunication Services
CoreWeave (NASDAQ:CRWV)	$48.2 billion	0.00%	IT Services
Figma (NYSE:FIG)	$11.7 billion	0.00%	Software
Circle Internet Group (NYSE:CRCL)	$21.3 billion	0.00%	Software
StubHub (NYSE:STUB)	$2.1 billion	0.00%	Entertainment

Data as of Oct 6, 2026. Showing 5 of 5 total entries.

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1. SpaceX

NASDAQ: SPCX

Space Exploration Technologies

Today's Change

(0.48%) $0.83

Current Price

$171.92

Key Data Points

Market Cap

$2.3T

Day's Range

$171.39 - $176.42

52wk Range

$104.83 - $225.64

Volume

106.3M

Avg Vol

93.5M

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SpaceX went public on June 12, 2026, becoming the biggest IPO in history. The company was valued at $1.77 trillion based on its $135 per share listing price, and raised roughly $75 billion in its IPO.

The stock then soared more than 50% from its IPO price in its first days of trading, topping Amazon and Microsoft in valuation at one point.

The Elon Musk-led company combines space exploration and reusable rockets with satellite internet under Starlink, and xAI, the Musk-founded AI business that owns the X social media platform and the chatbot Grok.

SpaceX isn't profitable, but its ambitions have won it a huge valuation as the company aims to colonize space and launch orbital data centers, among other big ideas. It's also focused on quickly ramping its AI compute capacity to 10GW by the end of 2027, and it believes that it has an addressable market of more than $27 trillion, nearly the size of U.S. GDP.

High expectations are clearly baked into SpaceX stock, and it remains to be seen if it can grow into them.

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2. Cerebras Systems

NASDAQ: CBRS

Cerebras Systems

Today's Change

(-2.45%) $-4.45

Current Price

$177.10

Key Data Points

Market Cap

$43B

Day's Range

$175.17 - $184.66

52wk Range

$160.81 - $386.34

Volume

9.4M

Avg Vol

6.8M

Gross Margin

39.00%

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After SpaceX, Cerebras Systems (CBRS -2.45%) has been the highest-profile IPO of 2026 through the beginning of October, as it's also seen as a winner from the AI boom.

Cerebras went public in May at $185/share, and the stock initially surged out of the gate, briefly topping $300 before falling back to its IPO price at the beginning of October.

Cerebras is a semiconductor company, but it differs from its peers by making a giant wafer-sized computer chip rather than microchips. It also makes cloud-based AI supercomputers that run those chips, which are especially well-suited for AI inference.

OpenAI and Amazon constitute two of its top customers, and the company is putting up huge growth with core cloud revenue up 287% in its second quarter. Its core total revenue was up 103 % to $209.9 million.

Cerebras is still small and unprofitable, but the company has a lot of growth potential if AI demand continues to increase.

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3. Figma

NYSE: FIG

Figma

Premium Feature

Moneyball Superscore

82/100

Today's Change

(-0.36%) $-0.08

Current Price

$21.93

Key Data Points

Market Cap

$12B

Day's Range

$21.80 - $22.32

52wk Range

$16.60 - $71.48

Volume

6.8M

Avg Vol

18.4M

Gross Margin

79.14%

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Figma (FIG -0.36%) is one of the newest companies to go public with its IPO in July 2025.

The stock soared initially as Figma has built a strong business around design software with a stable of top customers, strong top-line growth, GAAP profits on the bottom line, and new AI-powered products.

Prior to going public, Figma was in the news for agreeing to be sold to Adobe for $20 billion. However, regulators broke up the deal, claiming that it was anti-competitive.

Though Figma still competes against Adobe, the company has arguably the leading brand in user experience and user interaction (UX/UI) software, and has a bright future in front of it as it's investing aggressively in AI.

Since surging on its IPO, the stock has faded on concerns about overspending on new products, its valuation, and pressure on SaaS stocks due to fears about disruption from AI. In October 2026, the stock was trading well below its $33 IPO price with a market cap of around $12 billion.

4. Circle

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NYSE: CRCL

Circle Internet Group

Premium Feature

Moneyball Superscore

78/100

Today's Change

(1.00%) $0.83

Current Price

$84.13

Key Data Points

Market Cap

$21B

Day's Range

$83.11 - $86.74

52wk Range

$49.90 - $159.47

Volume

7.3M

Avg Vol

13.7M

Gross Margin

18.38%

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Circle Internet Group (CRCL +1.00%) went public in June 2025 with a blazing-hot IPO. After pricing its offering at $31, the stock opened at $69 on its first trading day and jumped 56% over the next two days, though it's since retreated from most of its initial surge.

The demand for Circle's shares indicates strong interest in crypto stocks. There are only a few pure-play crypto stocks on the market, and crypto did well through most of 2025, with Bitcoin (BTC -0.44%) hitting an all-time high before concerns about a bubble and a weakening labor market led to a sell-off in cryptocurrencies.

Circle issues the stablecoin USDC (USDC +0.00%), the biggest dollar-denominated stablecoin after Tether (USDT +0.00%). It earns money on transaction fees and interest on the reserves it holds to back the stablecoin, though that means profits could slip if interest rates fall. Conversely, the recent hike in interest rates and speculation that they could go higher is a tailwind for the company. Circle also recently launched Circle Payments Network, which can facilitate cross-border payments in real time.

The rise of prediction markets has emerged as a key driver for Circle's growth, as Polymarket is run on the USDC coin, and the two companies strengthened their partnership in Feb. 2026 when Circle said it would supply Polymarket with native USDC settlement infrastructure, increasing Circle's role in Polymarket's transactions.

Circle had a modest, generally accepted accounting principles (GAAP) loss in 2025, with a net loss of $69.5 million on $2.7 billion in revenue, which rose 64% from 2024.

5. Stubhub

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NYSE: STUB

StubHub

Premium Feature

Moneyball Superscore

50/100

Today's Change

(3.62%) $0.20

Current Price

$5.73

Key Data Points

Market Cap

$2.1B

Day's Range

$5.53 - $5.82

52wk Range

$5.21 - $21.49

Volume

Avg Vol

6.6M

Gross Margin

80.51%

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After years under the umbrella of eBay and then Viagogo, a ticket exchange platform, StubHub went public in September 2025.

Stubhub is not a new company by any means, having been founded in 2000 during the dot-com boom. While its growth has slowed over the years, the company has an attractive business model, thanks to the network effects endemic in secondary ticketing platforms.

It's the largest secondary ticket marketplace in the world, though it trails Ticketmaster as the largest overall ticketing platform.

After a boost from Taylor Swift's Eras tour in 2024, Stubhub experienced a downshift in revenue growth in 2025. It finished 2025 with gross merchandise sales (GMS) growth of 6%, or 18% excluding the impact of the Eras tour. Revenue was down 1.5% to $1.75 billion, showing its take rate declined.

The company has historically been profitable on a cash basis, but it has $1.5 billion in debt, much of which came from its acquisition by Viagogo.

Its first few months as a public company have been disappointing, with the stock down more than 75% from its $23.50 IPO price as of October 2026.

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IPO stocks to watch in 2026

These companies haven't gone public yet, but they're among the most hyped offerings in years.

1. OpenAI

OpenAI is one of the most anticipated IPOs in Wall Street history as the generative AI leader was valued at $852 billion pre-money in its most recent funding round in March 2026, after raising $110 billion from Softbank, Amazon, and Nvidia.

While it's been easy for the company to raise money in the private markets, the ChatGPT creator could go public as soon as this year.

According to The Wall Street Journal, the company is preparing for a public offering at the beginning of 2027, aiming to beat rival Anthropic to market. The company recently restructured its business as a for-profit enterprise and defined the stakes that investors like Microsoft hold in the company.

It filed confidentially to go public on June 8, 2026.

2. Anthropic

Not to be outdone, Anthropic, the other leading AI company and maker of the Claude chatbot, is also planning its own IPO for November after leaking some details from its prospectus to Reuters.

In May, Anthropic raised $65 billion at a pre-money valuation of $900 billion, making the company more valuable than OpenAI, showing how products like its chatbot Claude and Claude Code have caught fire.

On June 1, 2026, the company filed confidentially to go public.

Anthropic has gotten a lot of attention for its Claude Code tool, which has driven a sell-off in software stocks, as some investors believe it could replace a lot of traditional coding and software programs.

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How to evaluate an IPO stock

Once a company files its S-1 prospectus with the SEC, you can dig into its actual finances. Here's what to focus on:

Revenue growth: How fast is the top line expanding, and is the rate accelerating or decelerating?
Profitability: Is the company profitable on a GAAP basis? If not, how long is it until it could be?
Business model: Is this a proven model (cloud software, payments) or an unproven concept that needs to establish itself?
Customer concentration: Heavy reliance on a handful of customers is a risk.
Valuation: Plenty of IPOs have excellent businesses, but they debut at prices that make it impossible to generate a return. Don't chase heat.

One more thing worth knowing: IPO stocks are subject to lockup periods -- typically six months -- that prevent insiders from selling. When those expire, the stock can drop if insiders rush for the exits.

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How to buy IPO stock

Open your brokerage app: Log in to your brokerage account where you handle your investments. If you still need to open one, check out our list of the best brokers for IPO access.
Search for the IPO stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Pros and cons of investing in IPO stocks

There are a number of pros and cons to investing in IPO stocks. Let's review some of the big ones.

Pros:

Investing in IPOs can get you exposure to big winners.
Most top stocks were once IPOs.
You can get in early on a stock you like.

Cons:

Most IPOs underperform the market.
IPOs tend to be more volatile and riskier than the average stock.
It can take time for an IPO to find equilibrium in the market, and it's hard to know where it will settle.

In general, IPOs offer substantial potential upside and occasionally produce big winners, but most debuts do not perform as well as the S&P 500, whose stocks have proven their mettle on the way to earning their membership in the index.

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Tax considerations for IPO investors

If you are buying an IPO stock that's already publicly traded, the tax implications are the same as they would be for any stock.

You'll want to consider the holding period as well, as holding the stock for less than a year will be considered short-term capital gains, which is treated like ordinary income. Long-term capital gains, on the other hand, are charged at a lower rate, though it can be as high as 20%, depending on your marginal tax bracket.

For insiders, including employees and early investors, you'll want to consider the impact on restricted stock units (RSUs), which often have a default 22% tax withholding, and IPOs can cause RSUs to vest, meaning they become taxable as ordinary income immediately.

If you own stock options ahead of an IPO, exercising them before the stock goes public can work to your advantage to save on taxes.

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IPOs: FAQ

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About the Author

Jeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011. Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.

TMFHobo

@TMFBowman

Jeremy Bowman has positions in Figma. The Motley Fool has positions in and recommends Bitcoin and Figma. The Motley Fool has a disclosure policy.

Best IPO Stocks to Buy in 2026: Latest Upcoming Stocks to Watch

Key Points

Top recent IPO stocks (2025-2026)

1. SpaceX

Key Data Points

2. Cerebras Systems

Key Data Points

3. Figma

Key Data Points

4. Circle

Key Data Points

5. Stubhub

Key Data Points

IPO stocks to watch in 2026

1. OpenAI

2. Anthropic

How to evaluate an IPO stock

How to buy IPO stock

Pros and cons of investing in IPO stocks

Tax considerations for IPO investors

Related investing topics

Best Stocks to Buy Now: Our Buy-and-Hold Picks for October 2026

5 Best Entertainment Stocks for 2026 and How to Invest

4 Best Media Stocks for 2026 and How to Invest

How to Calculate Total Stock Returns

IPOs: FAQ

What is an IPO in stocks?

What is an IPO in stocks?

What's the best IPO to buy now?

What's the best IPO to buy now?

Should I invest in IPO stocks?

Should I invest in IPO stocks?

What companies went public in 2025?

What companies went public in 2025?

How to buy an IPO before it goes public?

How to buy an IPO before it goes public?

Do IPO investments offer higher returns?

Do IPO investments offer higher returns?

About the Author

Read Next

Stocks Mentioned

Motley Fool Stock Advisor’s Latest Pick

Premium Investing Services

Key Data Points

Key Data Points

Key Data Points

4. Circle

Key Data Points

5. Stubhub

Key Data Points

IPO stocks to watch in 2026

1. OpenAI

2. Anthropic

How to evaluate an IPO stock

How to buy IPO stock

Pros and cons of investing in IPO stocks

Tax considerations for IPO investors

Best Stocks to Buy Now: Our Buy-and-Hold Picks for October 2026

5 Best Entertainment Stocks for 2026 and How to Invest

4 Best Media Stocks for 2026 and How to Invest

How to Calculate Total Stock Returns

IPOs: FAQ

What is an IPO in stocks?

What is an IPO in stocks?

What's the best IPO to buy now?

What's the best IPO to buy now?

Should I invest in IPO stocks?

Should I invest in IPO stocks?

What companies went public in 2025?

What companies went public in 2025?

How to buy an IPO before it goes public?

How to buy an IPO before it goes public?

Do IPO investments offer higher returns?

Do IPO investments offer higher returns?