SpaceX, OpenAI IPOs Could End 23-Year Stock Market Shrinkage

The number of publicly traded US companies is set to stop shrinking for the first time in 23 years, driven by long-awaited initial public offerings (IPOs) from major private firms including SpaceX, Anthropic, and OpenAI. However, investors warn this shift could remove a key support for stock prices. For over two decades, the US stock market has seen more companies delist or be bought out than go public, steadily reducing the total number of listed firms. The upcoming IPOs from high-profile tech companies would reverse that trend. Yet analysts caution that the influx of new shares could have a downside. Many companies have been using stock buybacks—purchasing their own shares—to boost prices. As these private giants go public, the pace of buybacks may slow, removing that support. The net effect remains uncertain. While new listings expand market choice, investors will watch closely whether the loss of buyback activity offsets any gains from fresh IPOs.