Klarna and StubHub delay IPO plans as Trump tariff shock rattles investor sentiment: report

Klarna and StubHub have shelved their much-anticipated plans to go public as a fresh wave of market volatility triggered by President Donald Trump’s sweeping tariff announcement rippled through global financial markets.

According to a CNBC report citing a source familiar with the matter, the companies are postponing their initial public offerings due to mounting uncertainty and have not set a new timeline for their listings.

Both firms had filed their IPO documents with the US Securities and Exchange Commission in recent weeks and were preparing for public listings on the New York Stock Exchange.

Klarna, the Swedish buy-now-pay-later company, had been planning to trade under the ticker symbol KLAR, while online ticketing platform StubHub was set to list under the ticker STUB.

Klarna pauses long-awaited $15bn listing

Klarna had been preparing to launch its IPO roadshow with investors as early as next week.

However, the company decided to halt proceedings amid the broader market sell-off sparked by fears of a renewed trade war.

The move comes at a pivotal moment for Klarna, which has become symbolic of the highs and lows of the fintech sector.

The company was once valued at $46 billion during the peak of investor enthusiasm in 2021, but its valuation plummeted to $6.7 billion just a year later.

Despite the dramatic drop, Klarna has recently reported a return to profitability.

In 2024, it posted a net profit of $21 million compared to a loss of $244 million the year before.

Revenue climbed nearly 24% to $2.81 billion. Klarna has aggressively expanded in the US market, securing partnerships with major retailers such as Walmart, Apple, and DoorDash.

A person familiar with Klarna’s strategy said the company is under no obligation to list within a specific timeframe, leaving open the possibility of a delayed float should market conditions stabilize.

IPO success faces questions after CoreWeave struggles

StubHub has similarly opted to pause its IPO ambitions.

The company’s decision follows the rocky debut of artificial intelligence infrastructure firm CoreWeave, which became the first venture-backed tech company to raise over $1 billion in a US IPO since 2021.

Despite initial optimism, CoreWeave slashed its IPO price and suffered sharp losses in early trading, reinforcing concerns about market appetite for tech listings.

Investor sentiment took a further hit after China announced retaliatory tariffs in response to Trump’s sweeping measures.

The S&P 500 dropped 4.7% on Friday, while Europe’s Stoxx 600 fell over 5%. The sell-off highlights growing investor unease about the prospect of a full-scale trade conflict.

Shares in Affirm, Klarna’s US-listed competitor, have already fallen over 45% this year, underlining the tough environment facing fintech companies.

The delay in Klarna and StubHub’s IPOs is a setback for venture capital investors, who had hoped that a rebound in listings under the Trump administration might revive the struggling tech exit market.