Klarna and StubHub have decided to postpone their initial public offerings (IPOs) following a significant downturn in the stock market attributed to President Donald Trump’s comprehensive tariff measures. These tariffs, referred to as “Liberation Day” tariffs, resulted in an estimated $6 trillion loss in the stock market last week. Both companies had originally planned to present to investors next week but have now paused their roadshows due to the recent market instability, according to sources mentioned by CNBC.
Previously scheduled investor presentations for StubHub and Klarna have been suspended, as reported by The Wall Street Journal. Neither company provided comments to Fortune regarding the delay.
Sources informed the WSJ that StubHub feared investors would lack the opportunity to meet with the company amidst the ongoing market upheaval. Additionally, there was concern that proceeding with an IPO in such turbulent conditions might be perceived as a sign of desperation. This marks the second occasion StubHub has delayed its IPO after deferring last summer due to a sluggish market for new listings.
StubHub had intended to debut on the New York Stock Exchange with the ticker symbol STUB, aiming for a valuation of at least $16.5 billion in 2024. In the previous year, StubHub recorded a loss of $2.8 million on revenue totaling $1.77 billion. Comparatively, in the year before that, the company realized a profit of $405 million from $1.37 billion in revenue, as revealed in its S-1 filing. The recorded loss was attributed to an increased investment in sales and advertising, which raised expenses by $310 million to $828 million.
Similarly, Klarna, a company specializing in buy now, pay later loans, recently partnered with DoorDash to allow users to defer payments on meal deliveries. Klarna planned to list on the New York Stock Exchange under the ticker KLAR, aiming for a valuation of $15 billion. In 2022, Klarna was valued at $6.7 billion.
The competitor of Klarna, Affirm, has seen its shares plummet by 46% this year, including an 8% drop on the previous Friday, reducing its market capitalization to $11.4 billion, which is below Klarna’s valuation target.
Klarna had previously cautioned that tariffs could negatively impact its growth prospects. In its IPO filing last month, the company highlighted that changes in international trade policies, new tariffs, and immigration policies could result in a general economic downturn or decelerated growth, which could adversely affect consumer spending and consequently impact the financial well-being of its merchants.
This article initially appeared on Fortune.com.
