24/7 Wall Street | These are the 3 best-performing IPOs so far in 2025. Still time to buy?
Initial public offerings (IPOs) captivate investors with the chance to get in on the ground floor of promising companies, potentially reaping substantial long-term returns as firms like Apple or Amazon once did. Investing $1,000 in AAPL at its IPO in 1980 would be worth over $5.1 million today with dividends reinvested. AMZN stock from 1997 until today would be worth over $2.8 million.
However, IPOs carry significant risks, often amplified by market hype and limited historical data. Studies, such as those by Jay Ritter show IPOs frequently underperform broader market benchmarks in their first year.
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