Stripe IPO

How to trade on a potential Stripe IPO

Hailed as one of the most valuable technology start-ups in the US, payment processing firm Stripe may be planning to debut on the stock market as a public company. Read on to discover what is known about Stripe’s prospects for an initial public offering and how to get involved with the process.

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When is Stripe’s IPO date?

Although an official IPO date hasn’t yet been released, Stripe filed its intention to go public with the Securities and Exchange Commission (SEC) in July 2021. Representatives of Stripe said in 2024 that the company is in ‘no rush’ to go public, but rumours continue to circulate online that an IPO may be imminent.

Where will Stripe list?

The company hasn’t disclosed a particular stock exchange that it intends to list on, but given that it is a US-based company, the New York Stock Exchange or the Nasdaq seem like probable destinations. The latter is a popular choice for technology companies. Some big names that have listed on the Nasdaq include Airbnb, Coinbase and Bumble. Meanwhile, the New York Stock Exchange has played host to IPOs from Snowflake, DoorDash and DiDi.

What is Stripe’s IPO valuation and share price?

Stripe was last valued by investors at $65bn in a fundraising round in February 2024. Its potential list price in the event of an IPO is not yet known.

How to trade on Stripe’s IPO

1. Register for an account

Choose whether you want to spread bet, which is tax-free in the UK*, or trade CFDs, which are available globally.

2. Decide whether to buy or sell

You can either open a long position if you think that Stripe’s value will increase, or a short position if you think its value will fall. Please note that some trading restrictions may apply on initial trading.

3. Add risk-management controls

IPOs can be a volatile process, so it is best to avoid losses by adding stop-loss orders to your positions, which may close you out of a position at your specified price.

Read about stop-loss orders

4. Keep an eye out for news

The digital payments industry is becoming increasingly competitive and there are many companies in the race. Enable trading alerts on your mobile app so that you never miss an important development.

What are Stripe’s financials pre-IPO?

There is limited information on Stripe’s financials, given that it is a private company and is therefore not required to release reports on revenue and profitability. However, according to the Wall Street Journal, the company’s gross revenue rose by 70% in 2020 to around $7.4bn, rising further to $12bn in 2021 and $14.4bn in 2022. According to a report by the Financial Times in March 2024, Stripe became cash flow positive in 2023, with a net revenue of around $1bn in the third quarter of 2023.

Why may investors be interested in Stripe?

Stripe’s potential IPO could be even bigger than those of Coinbase and Rivian, two of the largest US IPOs of recent years.

The company boasts on its website that 90% of adults have bought from companies using Stripe’s platform, making over $1tn in payments via the platform as of 2023.

Stripe is used in over 195 countries and supports over 135 currency and payment methods. Stripe’s list of blue-chip clients includes Google, Amazon and Zoom.

Why might investors be sceptical towards Stripe?

Having been a private company for so long, Stripe has arguably missed out on some of the potential benefits of an IPO. These include the investment inflows that come from a public listing, which can be used to finance operations and acquisitions.

Another possible cause for investor concern is that Stripe faces competition from many other payment companies in the fintech sector.

Also, IPOs can be a volatile process, especially when they’re as oversubscribed as Stripe’s IPO is likely to be.

Does Stripe have any investors and/or investments?

Early investors in Stripe included Sequoia Capital, Allianz X, Baillie Gifford, Axa and Fidelity Management at different stages, as well as angel investors like Elon Musk (CEO of Tesla) and Peter Thiel (co-founder of PayPal and Palantir).

Stripe itself has invested in several start-ups over the years, including Monzo, Rapyd, Balance, Step and Assembled. The company also focuses on acquiring companies that can help to increase its global reach. For example, it bought the Nigerian tech company Paystack in 2020 to expand its business in Africa, as well as the software start-up Index in 2018, which could help Stripe compete for market share of in-store as well as online payments.

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Stay up to date with Stripe IPO news

As we don’t yet know the full details of Stripe’s IPO, including its expected date or share price, these will be announced as the company gets further along the process. Therefore, it’s important to keep an eye out for stock market news and announcements.

By entering your email address into the box above, we will notify you when Stripe stock is available on our platform. You can also enable trading alerts on your desktop or mobile device after setting up an account, so that you don’t miss out on any vital IPO developments.

FAQS

How can I trade on Stripe shares?

You will be able to spread bet and trade CFDs on Stripe shares when it has listed on a stock exchange and is available to the public. Decide whether you would prefer to spread bet or trade CFDs, as both products offer different benefits and risks.

Who are the underwriters for Stripe’s IPO?

Stripe plans to hire investment banks later on in the IPO process, but has already selected Cleary Gottlieb Steen & Hamilton LLP as a legal advisor for early-stage preparations for the listing.

When is Stripe going public?

An official IPO date hasn’t yet been released, although Stripe filed its intentions to IPO with the Securities and Exchange Commission (SEC) in July 2021. See which other companies are planning upcoming IPOs that you may be interested in.

How does Stripe make money?

Stripe makes money by charging transaction fees to clients, which can depend on the size of the business. Fees are negotiated on a case-by-case basis for larger clients, as their volume and values of sales will be taken into account into pricing.

Disclaimer: 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.

Trade on Stripe stock with us

Register for an account to get started. Once the shares are available on our platform, you will be able to spread bet or trade CFDs on Stripe's share price.