Two Emerging Players Reshaping the Market: What Investors Need to Know About Q3's Hottest New Companies on the Stock Market

The summer of 2025 marked a dramatic turning point for capital markets, as new companies on the stock market began capturing investor enthusiasm after months of relative hibernation. With only 84 IPOs launched during the first half of the year—a sharp decline from over 100 in the same period of 2024—the momentum shifted dramatically when June rolled around. Nine out of 16 IPOs raising above $50 million this year occurred that single month, signaling a fundamental change in market sentiment.

What’s driving this resurgence? The answer lies in a convergence of factors that have finally aligned to unlock investor capital.

Why the Capital Markets Suddenly Opened Their Doors

For years, the IPO market had been in deep freeze. Companies were content remaining private, with the average time to public markets stretching to nearly 11 years according to Morgan Stanley research—nearly double the seven-year norm from 2014. The culprits were familiar: a hostile macroeconomic environment, restrictive trade policies, and interest rates that made public capital prohibitively expensive. Private markets flourished, giving no reason for founders to subject themselves to quarterly scrutiny and SEC regulations.

But three critical shifts changed the equation heading into Q3:

First, investor appetite for new issues returned with genuine vigor. The rush wasn’t random—it concentrated in sectors already capturing market imagination: artificial intelligence and cryptocurrency-adjacent businesses. CoreWeave and Circle, both companies tied to these booming ecosystems, experienced explosive first-week trading that telegraphed investor desperation for exposure to innovation.

Second, the Federal Reserve’s apparent pivot toward rate cuts in the coming months created expectations of cheaper capital. Lower borrowing costs would dramatically improve IPO economics for both companies and their underwriters, making public debuts financially sensible again.

Third, the sheer pent-up demand for growth stories—particularly in AI and emerging tech—meant that new companies on the stock market faced unprecedented buyer interest. After years of restraint, institutional and retail investors alike were hungry for fresh investment vehicles.

When Collaboration Becomes Currency: Figma’s Explosive Debut

Figma Inc. (NYSE: FIG) represented the single largest IPO announcement since CoreWeave, yet the stock’s performance transcended typical first-day enthusiasm. The company initially priced its offering between $25 and $28, but opened at $33, then rocketed toward $100 within minutes. By close of trading, shares had settled at $115—a gain exceeding 200% from the opening bell.

This wasn’t mere speculation. Figma’s underlying business justified the exuberance. The design collaboration platform counted more than 13 million active users and generated $228 million in revenue during Q1 2025, representing a 46% year-over-year expansion. Net income hit $44.9 million, providing genuine profitability alongside growth metrics.

The company’s global footprint—with 85% of customers outside the United States—offered compelling expansion narratives. Major enterprise clients including Stripe, Duolingo, and Netflix Inc. (NASDAQ: NFLX) anchored the platform’s mission-critical positioning in enterprise workflows. Though market observers noted the valuation exceeded 40x sales following the initial surge to a $67 billion market cap, the subsequent 35% pullback over five trading sessions suggested even optimistic investors required breathing room.

Performance TV and the Connected Screen Revolution: MNTN’s Market Opportunity

MNTN Inc. (NYSE: MNTN)—pronounced “Mountain”—opened a different chapter in the new companies on the stock market narrative. The company operates a platform called Performance TV, which targets viewers on connected devices (smart televisions from manufacturers like Roku and Amazon) with precision advertising tailored to demographic data and viewing patterns.

Though MNTN’s first earnings report as a public company (released August 5) disappointed on earnings per share, revenue of $68.46 million surpassed forecasts by 6%, reflecting a robust 25% year-over-year climb. The company’s partnerships with Peacock, ESPN, CBS, and Fox established genuine first-mover advantages in an emerging advertising category with limited competition.

Wall Street’s response proved constructive: ten analysts initiated coverage, with eight Buy recommendations against two Hold ratings. The consensus price target of $29.90 implied approximately 20% upside from trading prices at the time of analysis, providing a quantifiable risk-reward proposition for growth-oriented portfolios.

The Broader Reshaping of Public Markets

The stark contrast between early 2025’s IPO drought and Q3’s awakening reflects fundamental shifts in how capital allocation cycles operate. As companies remained private longer than historical precedent, the backlog of potential public offerings accumulated pressure. Once conditions aligned—regulatory expectations cooled, growth narratives regained credibility, and monetary policy pivoted toward accommodation—the dam broke.

New companies on the stock market are now surfacing at a pace suggesting the dry spell has truly ended. Whether this momentum sustains depends on whether the Federal Reserve’s expected rate cuts actually materialize and whether the enthusiasm for AI and crypto-adjacent innovation persists beyond seasonal trading patterns. For investors, the current environment presents both genuine opportunities and the familiar risk of speculative excess during momentum-driven rallies.