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IPO Index Underperforms Broader Market Despite Strong Equity Rally
The IPO Index is down 0.
The Renaissance IPO Index has dropped around 0.8% in 2025 even as the S&P 500 posts double-digit gains, underlining a widening gap between new listings and established companies. Analysts say the underperformance reflects investor caution toward high-growth but low-profit businesses, especially in AI, SaaS and fintech. Many recently listed companies continue to struggle with scaling efficiency, while rising financing costs make liquidity-intensive models less attractive.
The divergence signals shifting sentiment toward proven profitability rather than early-stage momentum.