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Notable IPOs vs. the S&P 500: A look at returns
What this chart shows:
This chart compares the median total cumulative return of a basket of notable IPOs against the median return of the S&P 500 over matched holding periods. For each IPO, returns are measured from its first- trading-day closing price and the S&P 500 is measured over the identical dates. The bars show the median across the basket at each horizon — 6 months, 1 year, 3 years, and 5 years.
Why it matters:
When companies go public, it often creates an exciting story. But excitement at the IPO and results afterward can be two different things.
Among widely recognized companies that went public since 2012, the typical IPO underperformed the S&P 500 over every period measured: a median 11% over five years versus about 102% for the index.
The real lesson isn't that IPOs fall, it’s that results scatter. Over five years, the highest IPO gain measured was +568%. The worst loss measured was −89%.
The S&P 500's range over the same windows was far narrower, roughly +66% to +115%.
Source: Bloomberg, analysis by Lincoln Financial. Total returns from each company's first-trading-day closing price, measured against the S&P 500 Index (SPX) over the identical period. Data as of 6/25/26. Selection: An illustrative, non-exhaustive sample of 18 widely recognized U.S.-listed companies that completed a traditional underwritten IPO (direct listings and SPAC mergers excluded) on or after May 18, 2012, with at least a five-year trading history as of 6/25/26, not a ranking. IPOs included: BABA, META, UBER, CPNG, SNOW, ABNB, SNAP, DASH, LYFT, RKT, PINS, U, PTON, ZM, DDOG, CRWD, NET, BYND. Individual results varied widely. 3yr ret. window coincided with growth stock weakness that began in 2022. Past performance does not guarantee or predict future performance. You cannot invest directly in an index. For educational purposes only; not a recommendation to buy or sell any security.