RiskReversal Pod The Return of Tech IPOs in 2025? What’s Fueling the Optimism with RBC's Jesse Chasse | Okay, Computer.
Nov 27, 2024
In this discussion, Jesse Chasse, head of tech ECM at RBC Capital Markets, shares his expertise on the tech IPO landscape. He elaborates on the optimistic outlook for 2024 and the unique dynamics of public versus private investment. The conversation dives into the impact of generative AI, venture capital pressures, and the challenges in tech valuations. Jesse also recounts his experience with Waymo's robo-taxis, reflecting on deregulation led by Elon Musk and its implications for the evolving tech market.
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Tech IPO Optimism and Software Sector Outlook
- Tech IPO optimism is rising due to post-election deregulation prospects and the end of rate hikes.
- Software sector performance is improving, but its decoupling from rates and the sustainability of this trend remain uncertain.
Shifting Tech Narratives and Investor Diversification
- Software stocks are outperforming semiconductors since the election, signaling investor diversification from AI-first narratives.
- Microsoft's underperformance despite AI integration suggests a broadening of tech themes.
2024 IPO Market: Improvement but Challenges Remain
- The 2024 IPO market is improving over 2023 but remains below typical levels.
- Macroeconomic uncertainty and flat stock performance hinder IPO activity, especially for small and mid-cap tech companies.