Klarna IPO on Hold: Trump’s Tariffs Rattle Markets, Force StubHub Delay
As 2025 unfolds, a wave of companies has been eyeing the public markets with renewed optimism. After years of sluggish IPO activity, investor appetite seemed to be rebounding—despite the persistent backdrop of economic headwinds and geopolitical unease.
But the fragile momentum is once again being tested. The planned Klarna IPO and StubHub’s listing, two high-profile firms gearing up for billion-dollar debuts on the New York Stock Exchange, have abruptly hit pause. Their decision comes just days after former President Donald Trump signed a sweeping executive order triggering a wave of reciprocal tariffs—an aggressive move that sent shockwaves through global markets and erased trillions in value from U.S. equities.
The so-called “Liberation Day” executive order, signed Wednesday, sparked a $6 trillion market wipeout and erased months of fragile optimism among investors. With the Dow plunging 4% and the Nasdaq notching its steepest weekly loss since 2020, both Klarna and StubHub have opted to pull their roadshows, citing growing investor unease and timing concerns.
The abrupt reaction is a reminder of just how sensitive today’s market is to macro-level disruptions. Echoes of past turbulence, like the tariff-induced volatility seen during Trump’s presidency, are resurfacing as key risk factors for companies considering going public. For Klarna and StubHub, the decision to delay underscores the tightrope walk facing IPO hopefuls in an era where timing, perception, and policy are more entwined than ever.
Klarna and StubHub: Chasing the Public Market
Both Klarna and StubHub had positioned themselves as marquee IPO candidates in what was expected to be a turning point for tech listings in 2025. With investor sentiment tentatively recovering earlier this year, the two companies moved quickly to prepare public offerings—hoping to ride the tailwind of renewed appetite for growth-oriented platforms.
Klarna, the Swedish fintech giant known for its buy now, pay later services, was targeting a valuation of up to $20 billion, according to filings and reports from Bloomberg. StubHub, meanwhile, the dominant player in the event ticketing space, had been aiming for a $16.5 billion valuation. Both had planned to list on the New York Stock Exchange in the coming weeks under the ticker symbols KLAR and STUB, respectively.
Investor interest in both firms was fueled by their market positioning. Klarna has shown resilience after a dramatic downturn, posting a return to profitability in 2024 and securing high-profile partnerships with Walmart, Apple, and DoorDash. StubHub, backed by private equity, saw demand rebound sharply after pandemic-era shutdowns decimated the live events industry.
But despite promising fundamentals, the macroeconomic backdrop proved too unstable. Trump’s latest executive order on tariffs triggered a sharp sell-off, spooking institutional investors and forcing both companies to shelve their IPO plans. StubHub’s advisers reportedly feared that investor meetings would be rushed or poorly attended, while Klarna insiders cited concerns over valuation stability in a volatile market.
The Klarna IPO: How the Fintech Giant is Preparing to Go Public
Founded in 2005 in Stockholm, Klarna helped pioneer the now-ubiquitous buy now, pay later (BNPL) model—allowing consumers to split purchases into installments without traditional credit. The company quickly grew into one of Europe’s leading fintech players, and since 2017 has operated as a fully licensed bank in the EU.
Klarna became a poster child of pandemic-era fintech enthusiasm, reaching a peak valuation of $46 billion in 2021 following a SoftBank-led funding round. But the tide soon turned. As interest rates soared and investor appetite for risk faded, Klarna’s valuation plunged to $6.7 billion in 2022—an 85% drop that mirrored broader struggles across the tech sector.
Yet Klarna has staged a comeback. In 2024, it posted a net profit of $21 million, a dramatic improvement from its $244 million loss the year before. Revenue surged 24% to $2.81 billion, and adjusted operating profit swung from a $49 million loss in 2023 to $181 million in gains. The company attributes the turnaround to strong U.S. expansion, cost-cutting, and strategic partnerships.
Still, the road ahead isn’t without hurdles. Klarna faces growing regulatory scrutiny in the U.S. and U.K., where watchdogs have raised concerns about BNPL’s impact on consumer debt. Market competition is also intensifying: rivals like Affirm, PayPal, Block, and a wave of neobanks are expanding lending products, fighting for the same consumer dollar.
Klarna’s decision to go public in the U.S.—rather than at home in Sweden—is a strategic play. CEO Sebastian Siemiatkowski has long touted the visibility, liquidity, and regulatory advantages of a U.S. listing. But insiders say the company is under no immediate pressure to go public and will wait for more favorable conditions.
The IPO, when it eventually materializes, will be a litmus test not only for Klarna’s rebound but also for the broader fintech sector’s durability in a post-pandemic, high-interest-rate world.
StubHub: Betting on the Return of Live Events
StubHub’s road to the public markets has been anything but linear. Originally a scrappy ticket resale platform, the company was acquired by eBay in 2007 and became one of the most recognized names in live event ticketing. In 2020, eBay sold StubHub to private equity firm Viagogo for $4.05 billion—just before the pandemic brought global events to a standstill.
Now, with live entertainment roaring back, StubHub is banking on that resurgence to fuel investor enthusiasm. In 2024, the company reported $1.77 billion in revenue, up significantly from $1.37 billion the year prior. However, it posted a $2.8 million loss, attributed largely to a steep $310 million jump in sales and advertising expenses—a sign of its aggressive push to reestablish dominance post-COVID.
StubHub had planned to go public on the NYSE under the ticker STUB, targeting a valuation of at least $16.5 billion. The company’s IPO motivations are clear: to capitalize on a market upswing, inject new capital into growth efforts, and offer liquidity to private shareholders. But timing proved tricky—this is the second time StubHub has postponed its listing, after previously delaying during the slow IPO market in 2024.
The company operates in a hyper-competitive space, with rivals like Ticketmaster (owned by Live Nation), SeatGeek, and AXS all jostling for market share. Moreover, regulatory scrutiny around ticket pricing and transparency remains an ongoing concern in the U.S. and Europe.
Still, StubHub sees a long runway for growth. As hybrid work arrangements free up consumer schedules and demand for shared experiences rises, ticketing platforms are poised to benefit. The key will be whether StubHub can convert its strong brand recognition into sustainable margins—and convince investors it’s not just riding a temporary wave.
What’s Next: Can Klarna and StubHub Deliver?
The postponed IPOs raise a broader question: Can Klarna and StubHub succeed once they do go public?
In many ways, the answer hinges less on fundamentals and more on macroeconomic variables. Interest rates, inflation, and consumer confidence will remain crucial indicators. Klarna’s business is highly sensitive to discretionary spending, while StubHub’s depends on consumer willingness to splurge on non-essential experiences. Both companies are exposed to shifts in sentiment—and, increasingly, to geopolitical turbulence.
Tech valuations, while slowly stabilizing, are still being recalibrated. Investors are more selective than they were during the pandemic boom, demanding not just growth, but profitability and resilience. Klarna’s return to the black is a positive signal, but questions remain around BNPL regulation and long-term sustainability. StubHub, meanwhile, must prove it can balance scale with profitability in a sector still recovering from shutdowns.
For both firms, IPO timing will be everything. A well-timed listing in a calm market could unlock billions in value. A rushed move during volatility could do lasting damage to their brand and investor trust.
Ultimately, Klarna and StubHub represent two sides of the modern tech economy: fintech and experience-based commerce. Each is betting on a return to consumer confidence—and each will serve as a bellwether for their sector when they finally step back onto the public stage.
