2 Red-Hot Recent IPOs To Buy in 2025

By Joey Frenette Published Jul 3, 11:18AM EDT

Key Points

CRWV and CRCL are pulling back a bit after a heated triple-digit percentage surge.
Though I wouldn’t rush into the names on weakness, I would keep track of them should lower lows be on the horizon.

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

2 Red-Hot Recent IPOs To Buy in 2025 — © Chunumunu / iStock via Getty Images

The tech IPO market has really heated up this year. And while there was a bit of market turbulence to start the year, the appetite for such IPOs, I believe, could stay strong into the summer months and into year’s end. Undoubtedly, we’ve had a relatively decent slate of public debuts in recent months. Many IPOs have really hit the ground sprinting, but investors looking to punch their ticket into a recent IPO should be mindful of the price they’ll pay. Indeed, picking your spots very carefully is a wise idea when it comes to such newly public firms, especially those with oversubscribed IPOs.

Of course, the first year of public trading tends to be profoundly volatile. And while it can be difficult to time when that next major pullback will be after the initial excitement-driven post-IPO surge, I do think watching and buying dips is the way to go for those investors who are keen on a recent IPO but is fully aware of the risks of paying too high a multiple for a firm that hasn’t had enough time to prove itself.

In any case, this piece will check out two heated IPOs from the first half of 2025 that are worth watching and buying into weakness in the second half. While only time will tell if the hype-driven surge in the following tech IPOs will end in tears, I do think that the names are worth keeping on your radar in case momentum reverses course and investors begin to fold their positions en masse, perhaps at the first signs of increased market choppiness.

CoreWeave

CoreWeave (NASDAQ:CRWV) stock’s blistering triple-digit percentage run has slowed in recent weeks, with shares now down more than 17% from their mid-June heights. The AI infrastructure play still has some of its most explosive growth days ahead of it as data center demand looks to pick up the pace ahead of the next chapter of the AI boom. Indeed, if there’s a company that can grow into its hefty valuation multiple, it’s CoreWeave. But with shares entering correction territory after a big run, I wouldn’t at all be surprised to witness investors running for the hills following a downgrade from a big-name analyst.

Brad Sills of Bank of America (NYSE:BAC | BAC Price Prediction) downgraded CoreWeave shares to neutral from buy, primarily due to valuation concerns. Currently, CRWV stock trades at just shy of 27 times price-to-sales (P/S), a lofty multiple that doesn’t leave much room for error.

Also, Mr. Sills is not a fan of the company’s debt pile and the potential for AI capex to run into a peak. Indeed, if AI is in the process of a peak in growth, CoreWeave’s latest correction could evolve into a fairly nasty bear market that wipes out much of the gains enjoyed since its first-half IPO.

Though I wouldn’t be shocked if shares were to dip 3o-40%, I do think that such a painful plunge would serve as more of a buying opportunity for those who missed the May-June surge. With CoreWeave reportedly going after one of its suppliers in Core Scientific (NASDAQ:CORZ) again, perhaps there is an opportunity for CoreWeave to beef up its growth via M&A.

Circle Internet Group

Circle Internet Group (NASDAQ:CRCL) was another hot IPO that has since come in after peaking in mid-June. The stock more than doubled in two short weeks before shedding more than a quarter of its value. Though Circle is another high-risk, high-reward IPO, I do think that it’s an expensive high-flyer that’s worth careful consideration, especially if the name returns below the $150 per-share level.

The stablecoin behind USDC (USD Coin), perhaps one of the most trusted stablecoins out there, is an intriguing crypto play that may very well be leading the charge on nudging finance into the new age. For those bullish on the long-term future of stablecoins and beyond, Circle certainly stands out. For now, though, I’d much rather adopt a wait-and-see approach.

There’s no need to be a hero and buy the stock after its bear market plunge, especially while they’re going for more than 22 times P/S and over 158 times forward price-to-earnings (P/E). With Ark Invest’s Cathie Wood, one of the biggest investors in disruptive technology, booking a quick profit on CRCL stock, I do think the easy money has been made, and there’s a high risk of lower lows ahead for a name that could give those who missed the public market debut a second chance to punch a ticket at close to the IPO price.

About the Author Joey Frenette →

Joey is a 24/7 Wall St. contributor and seasoned investment writer whose work can also be found in publications such as The Motley Fool and TipRanks. Holding a B.A.Sc in Computer Engineering from the University of British Columbia (UBC), Joey has leveraged his technical background to provide insightful stock analyses to readers.

Joey's investment philosophy is heavily influenced by Warren Buffett's value investing principles. As a dedicated Buffett disciple, Joey is committed to unearthing value in the tech sector and beyond.