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Musk’s SpaceX is reportedly hearing pitches from investment banks interested in advising on an IPO.

Key Takeaways

• Elon Musk's SpaceX is reportedly hearing pitches from investment banks this week as the space exploration company considers going public in what could be the largest IPO to date.
• Next year could be a big one for IPOs: AI startups OpenAI and Anthropic are among the other private companies reportedly exploring going public next year.

Wall Street may be headed for a year of blockbuster IPOs in 2026. And a company led by Elon Musk could be leading the way.

Musk’s SpaceX is reportedly hearing pitches this week from investment banks interested in advising on what could be the largest initial public offering in history, The Wall Street Journal reported on Monday. That news advanced reports that the space exploration company was considering going public from last week, when Bloomberg said SpaceX is targeting a mid-to-late 2026 IPO that would raise $30 billion and value the company at about $1.5 trillion, among the biggest companies in the S&P 500.

If SpaceX hits its IPO targets, it would surpass Saudi Aramco, the Saudi state-owned oil company, as the largest debut in history. Aramco raised about $29 billion when it went public in 2019. (SpaceX is reportedly in the process of buying insider shares at a price that values it at $800 billion, double its valuation from this summer.) The company didn't respond to Investopedia's request for comment in time for publication.

Why This Is Important

IPO activity often reflects the prevailing mood on Wall Street, with listings rising when optimism is high and vice versa. The IPO market began to return to normal in 2025 after years of being pressured by high interest rates.

SpaceX stock can't be traded yet, but some market watchers are already betting on a big response from investors when it can. Saudi Aramco debuted with a market capitalization of nearly $1.9 trillion; users of online prediction market Polymarket on Monday put the chance of SpaceX's market cap finishing its first day of trading above $2 trillion at about 14%.

A listing of that size would make SpaceX founder and CEO Elon Musk, already the world's richest person, even wealthier. Musk's SpaceX stake accounts for more than a quarter of his $470 billion fortune, according to Bloomberg, which estimates that he owns about 42% of the company. Holding a stake anywhere close to that size when SpaceX goes public could make Musk the world's first trillionaire far earlier than some thought possible.

Musk has for years said he has no interest in taking SpaceX public, which he worried would derail his plans to facilitate the colonization of Mars. But he and others have lately discussed the notion that insufficient electricity is restraining the AI boom, and that sending data centers into space, where they can draw on solar energy, could help.

Musk last week called “accurate” a report that SpaceX was considering going public to fund efforts to develop orbital data center technology. SpaceX has reportedly floated the idea of using Starlink satellites to host AI workloads as part of its recent pitch to investors.

SpaceX is one of several massive companies considering a public offering next year. ChatGPT maker OpenAI, valued at $500 billion in October, has reportedly discussed a public offering with bankers. Competitor Anthropic is reportedly preparing for an IPO, according to the Financial Times, which also reported the company was targeting a $300 billion valuation in a funding round. Data software company Databricks, TikTok parent ByteDance and fintech Stripe are also rumored to be exploring IPOs next year. 

Investors have been waiting years for the return of IPOs. Hundreds of companies went public via IPO or SPAC merger in 2021, spurred by post-pandemic liquidity and rock-bottom interest rates. Activity fell off a cliff in 2022 when the Federal Reserve began raising rates to address soaring inflation. The IPO market stayed cold until this year, when activity has finally picked back up, albeit at a more modest pace than during the pandemic bonanza.

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The recent rally for cannabis stocks reversed course Monday afternoon

Key Takeaways

• Weed stocks dropped Monday afternoon, reversing early gains on hopes President Trump could soon issue an executive order reclassifying marijuana. 
• An expected reclassification from a Schedule I to a Schedule III drug would help companies in the sector reduce their taxes and relax banking restrictions.

Weed stocks aren't flying so high anymore.

Shares of Tilray Brands (TLRY) dropped nearly 5%, Canopy Growth (CGC) slipped 3%, and other cannabis stocks also lost ground in recent trading, reversing early gains amid hopes President Trump could issue an executive order reclassifying marijuana.

The order, seen changing marijuana from a Schedule I to a Schedule III drug, was expected as soon as today, according to reports late last week. Schedule I drugs, such as heroin and LSD, are considered more dangerous compared to Schedule III drugs, a category which includes steroids.

A White House spokesperson told Investopedia Monday afternoon that no final decisions have been made.

Why This Matters to Investors

Reclassifying marijuana as a Schedule III drug would benefit cannabis companies by significantly lowering financial and regulatory pressures.

While marijuana has been legalized on the state level in most U.S. states and territories for medicinal or recreational use, it remains illegal under federal law and its classification as a Schedule I drug restricts research on it as a medicine, with more stringent penalties for illegal activities related to it. 

Changing marijuana to a Schedule III drug would help cannabis companies by lowering their tax burden and open up banking options, allowing customers to purchase marijuana with credit cards.

With Monday's losses, Tilray Brands have fallen about 15% in 2025 so far, while Canopy Growth shares have lost nearly 40% of their value.

This article has been updated since it was first published to reflect more recent developments.

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ServiceNow shares have lost more than a quarter of their value since the start of 2025.

Key Takeaways

• ServiceNow is reportedly close to acquiring Internet of Things cybersecurity firm Armis.
• The deal could be worth as much as $7 billion, Bloomberg reported.
  

Shares of ServiceNow (NOW) sank Monday following a report the the AI-driven enterprise software provider was close to purchasing Internet of Things security startup Armis for as much as $7 billion.

Bloomberg reported the two companies are in advanced talks and an agreement may be announced soon. If it happens, the acquisition would be the largest ever by ServiceNow, Bloomberg said.

The addition of Armis would give ServiceNow access to the company’s cyber security platform that discovers, protects and manages all of its customers’ connected devices. 

ServiceNow shares were down more than 11% recently, pacing S&P 500 decliners on Monday and trading at their lowest level since April. The stock has lost more than a quarter of its value since the start of 2025.

Why This News Matters

ServiceNow's reported interest in Armis received a negative reaction from investors, who may be concerned about the potential cost of the deal. Often, shares of a company making a big acquisition fall when news of the transaction breaks. In this case, the slide adds to a rough year for ServiceNow shares.

Armis is owned by tech-oriented private equity and venture capitalist firm Insight Partners, which bought it in 2020 for $1.1 billion. At the time, Insight Managing Director Jeff Horing said Insight will be a “partner Armis can leverage to help execute their vision of protecting unmanaged devices proliferating every vertical around the world.”

Recently, Alphabet’s (GOOGL) Google and Palo Alto Networks (PANW) announced their own purchases of cybersecurity companies.

Investopedia reached out to both ServiceNow and Armis but didn't receive comments from the companies before publication.

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With Monday's losses, iRobot shares have lost about 85% of their value in 2025.

Key Takeaways

• Roomba robot vacuum maker iRobot announced a Chapter 11 bankruptcy filing on Sunday.
• A deal for Amazon to buy the company fell through last year.

Shares of iRobot (IRBT) plummeted over 70% Monday morning after the Roomba robot vacuum maker announced a Chapter 11 bankruptcy filing on Sunday.

The company said it plans to have one of its lenders and its primary contract manufacturer, a Chinese robotics firm called Picea, acquire 100% of its equity, with iRobot set to continue operating as a private company under Picea.

CEO Gary Cohen said the Chapter 11 filing and acquisition by Picea is a "pivotal milestone in securing iRobot's long-term future" that will "strengthen our financial position and will help deliver continuity for our consumers, customers, and partners."

Why This Matters to Investors

Chapter 11 bankruptcy filings often involve companies working out court-mediated agreements with creditors to restructure their operations to improve their financial position, and can also result in those lenders acquiring a company's assets. In this case, iRobot has agreed to a deal to be acquired by Picea.

Current Roomba users shouldn't be impacted and their devices should work as normal, as iRobot said there is "no anticipated disruption to its app functionality, customer programs, global partners, supply chain relationships, or ongoing product support."

A previous plan for iRobot to be acquired by Amazon (AMZN) faced increasing regulatory scrutiny in late 2023, with the deal falling apart when Amazon backed out in January 2024. At the time, iRobot replaced its CEO and said it would lay off 350 employees, about 30% of its workforce.

Earlier this year, iRobot launched a strategic review of its options, as the company said tariffs, macroeconomic conditions, consumer demand, and competition were creating "substantial doubt about the Company's ability to continue as a going concern" for the next year. Shares fell 35% that day in March, and iRobot shares have remained largely below $5 in the months since.

With Monday's losses, iRobot shares have lost about 85% of their value in 2025.

News of the day for Dec. 15, 2025

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Major stock indexes closed last week with steep declines amid fears about an AI bubble.

Stock futures are gaining ground Monday morning at the start of a week filled with economic data and earnings reports; the price of gold is approaching the record highs the precious metal last reached in mid-October; iRobot shares are sinking after the maker of the Roomba robot vacuum said over the weekend that it plans to file for bankruptcy; Sanofi shares are also falling amid disappointing updates for one of its developmental drugs; and workplace software maker ServiceNow is reported to be in talks to acquire a cybersecurity startup for up to $7 billion. Here's what you need to know today.

Stock Futures Rise Ahead of Busy Week of Economic Data, Earnings

Stock futures are pointing to a higher open after the major indexes closed out last week with steep losses amid concerns about an AI bubble. Futures tied to the Dow Jones Industrial Average and the S&P 500, each of which hit record highs last week, were up 0.5% recently, while futures linked to the tech-focused Nasdaq added 0.6%. Investors will get new data on the job market and inflation this week, and hear from several Federal Reserve members following last week's interest rate cut. The yield on the 10-year Treasury, which affects rates on all sorts of consumer loans, was at 4.16% this morning, after closing last week at 4.20%, near its highest level in three months. Bitcoin was at $89,700, up from a weekend low of $87,600.

Gold Approaching All-Time High Set in October

The rally that has carried the price of gold to a series of record highs this year looks like it could have new momentum. Gold has recovered from a stumble that took place in the days immediately after it set a record high in mid-October of just below $4,400. Gold and other precious metals have set a number of records this year as tariffs and trade tension, volatility in the stock market, and the government shutdown created uncertainty that pushed investors into assets perceived as safe havens. Gold futures were up 1.2% at $4,380 an ounce in recent trading. The price of gold has gained about 65% since the start of the year.

iRobot Stock Plummets on Bankruptcy Filing

Shares of iRobot (IRBT) are plummeting after the Roomba robot vacuum maker on Sunday announced plans to file for bankruptcy. The company said that one of its lenders and its primary contract manufacturer, a Chinese robotics firm called Picea, will acquire 100% of its equity through the Chapter 11 process, with iRobot set to continue operating as a private company under Picea. Current Roomba users shouldn't be affected, as iRobot said there is "no anticipated disruption to its app functionality, customer programs, global partners, supply chain relationships, or ongoing product support." The stock is down about 70% ahead of the opening bell, trading at around $1.30. Shares had lost about 45% of their value this year through Friday's close.

Sanofi Shares Fall on Latest Drug Trial, Regulatory News

Sanofi (SNY) shares are losing ground Monday after the French drugmaker gave a pair of disappointing updates for one of its drugs in development. Sanofi said Monday that tolebrutinib, a drug being developed to treat multiple sclerosis, did not meet its primary goal of slowing disease progression in a Phase 3 clinical trial for those with primary progressive multiple sclerosis, a specific form of the disease that affects about 10% of MS patients. Along with the clinical trial update, Sanofi said that a Food and Drug Administration review of tolebrutinib will not be completed by the end of this year as the company previously anticipated, and now says it should end in the first quarter of 2026. Sanofi's U.S.-listed shares, which through Friday's close were up less than 1% since the start of the year, were down nearly 2% Monday morning.

ServiceNow in Talks to Buy Cybersecurity Startup for $7 Billion, Report Says

ServiceNow (NOW) is in talks to potentially acquire Armis, a cybersecurity startup, for up to $7 billion, Bloomberg reported over the weekend. Earlier this year, Armis executives said they still planned to go public in 2026, and said they were considering six or seven offers for a new investor to acquire a stake in the company, per Bloomberg. The report said that a deal between ServiceNow and Armis could be announced in the coming days, but noted that another bidder could enter the running or the talks could fall apart. Shares of ServiceNow, a maker of workplace automation software, were down 5% in recent premarket trading. Through Friday's close, the stock had lost nearly one-fifth of its value in 2025.

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The Fed tied its interest-rate cut last week to worries over growing weakness in the labor market.

The data drought of the government shutdown is giving way to a deluge.

Several long-awaited economic reports are on the schedule this week. Market watchers will get delayed reports on employment levels, retail sales, and inflation, along with regularly scheduled data on existing-home sales and consumer sentiment. Fed Chair Jerome Powell said central bankers need more data as they evaluate the path of interest rates; Remarks by Fed governors Stephen Miran and Christopher Waller could sway markets as investors await signals on the central bank's next move on interest rates.

Investors will get another look at the artificial intelligence trade this week with the an earnings report due from chipmaker Micron Technology. Reports from Nike, FedEx, CarMax, General Mills and Carnival will offer insight into the U.S. consumer. 

Read to the bottom for our calendar of key events—and one more thing.

Data Highlights Jobs, Inflation, Retail Sales Reports 

The Fed tied its interest-rate cut last week to worries over growing weakness in the labor market. That picture will become somewhat clearer when the Bureau of Labor Statistics releases November employment data on Tuesday. Also due that day are retail sales data from October and business inventories levels from September, which can provide a closer look at consumer demand.

On Thursday, the release of the November Consumer Price Index (CPI) will provide insight into tariffs' impact on inflation as the Fed watches price pressures closely going into 2026.

Meanwhile, two Federal Reserve officials tied to President Donald Trump will speak this week: Fed Governor Stephen Miran, who speaks as markets open on Monday, has served as an economic adviser to Trump and voted for a larger interest rate cut at last week's meeting. Fed Governor Christopher Waller, among the potential candidates to lead the central bank, will deliver remarks to a meeting of CEOs on Wednesday.

Earnings Continue, WIth Micron, Nike and FedEx Due

While most major tech firms have reported their earnings for the third quarter, investors this week will hear from one of the hottest plays in the artificial intelligence trade. Micron Technology’s report on Wednesday arrives after a year in which the memory chip maker’s stock has surged by more than 200%.

Several earnings reports this week will highlight consumer health, including the Thursday report from Dow Jones component Nike, which is seeing success from its turnaround efforts. The sneaker maker warned that tariffs could still impact its bottom line, even as sales showed surprising growth in its most recent quarterly report.

Other scheduled reports this week are also likely to add to the portrait of consumers, including online car seller CarMax, cereal maker General Mills, food brand Conagra, restaurant chain Darden Restaurants, footwear producer Birkenstock, and cruise line operator Carnival.

Investors will also be following the Thursday report from FedEx after the shipping giant reinstated its full-year outlook, where it laid out a forecast of 4% to 6% annual revenue growth, despite facing tariff impacts. The company's report can serve as an indicator of overall commercial activity in the economy.

Quick Links: Recap Last Week’s Trading | Read Investopedia’s Latest News

This Week’s Calendar

Monday, Dec. 15

• Homebuilder confidence index (December)
• More Data to Watch: Empire State manufacturing survey (December)
• Federal Reserve Officials Speaking: Fed Governor Stephen Miran, New York Fed President John Williams
• Key Earnings: Navan (NAVN)

Tuesday, Dec. 16

• U.S. employment report (November)
• More Data to Watch: U.S. retail sales (October), Business inventories (September), S&P flash U.S. Purchasing Managers Index (PMI) (December)
• Key Earnings: Lennar (LEN)

Wednesday, Dec. 17

• Federal Reserve Officials Speaking: Fed Governor Christopher Waller, New York President John Williams, Atlanta Federal President Raphael Bostic
• Key Earnings: Micron Technology (MU), Jabil (JBL), General Mills (GIS)

Thursday, Dec. 18

• Consumer Price Index (November)
• More Data to Watch: Initial jobless claims (Week ending Dec. 13), Philadelphia Fed manufacturing survey (December)
• Key Earnings: Accenture (ACN), Nike (NKE), Cintas (CTAS), FedEx (FDX), Darden Restaurants (DRI), Birkenstock (BIRK), CarMax (KMX), KB Home (KBH), BlackBerry (BB)

Friday, Dec. 19

• Existing-home sales (November)
• More Data to Watch: Consumer sentiment - final (December)
• Key Earnings: Paychex (PAYX), Carnival (CCL), Conagra (CAG), Lamb Weston (LW), Winnebago (WGO)

One More Thing

Investors across the board are looking for ways to get into the AI trade, but legendary tech founder Bill Gates has a warning about companies working with the new technology. Investopedia’s Colin Laidley has more here on Gates’s assessment of AI stocks.

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Key Takeaways

• Federal Reserve officials discussed interest rates on Friday and offered differing views on where they should be set.
  
• The Fed has been caught between the necessity to keep rates higher for longer to fight inflation and lowering them to help prevent the sluggish job market from collapsing.
  

Three members of the Federal Reserve's policy committee talked about interest rates on Friday, and fittingly, given the divisions on the committee, had three different takes about where it should go.

Beth Hammack, president of the Federal Reserve Bank of Cleveland, said she preferred to keep the Fed's key interest rate higher for longer to push down inflation that's still running above the Fed's goal of a 2% annual rate. Chicago Fed President Austan Goolsbee said he thought rates could come down significantly next year, but that he had opposed the rate cut the Fed made this week because he wanted to see more data first. Anna Paulson, president of the Federal Reserve Bank of Philadelphia, said inflation would likely fade next year and that she saw greater risks to the labor market.

The comments were the first from Fed officials since the "blackout period" surrounding the Fed meeting, in which officials don't publicly discuss interest rates. The diversity of opinions reflects the difficulty of the Fed's balancing act as it pursues its dual mandate from Congress to keep inflation low and employment high.

Tariffs have pushed up consumer prices, fueling an uptick of inflation in recent months and pushing it farther away from the target. When inflation accelerates, the Fed usually responds by raising its key interest rate, which increases borrowing costs on all kinds of loans and discourages spending.

What This Means For The Economy

The divided viewpoints expressed on Friday reflected the deep divisions on the Fed's policy committee and highlighted the difficulty of the central bank's next move on interest rates.

Meanwhile, the job market has been struggling, partly due to tariff-related disruptions, and Fed officials are increasingly concerned about the risk of a wave of unemployment. The Fed can counteract job slumps by lowering rates instead, and that's what it has done at its last three meetings.

A major question for Fed officials is whether interest rates are "restrictive," meaning rates are high enough to be a drag on the economy and inflation. They're hoping to ensure their rates are "neutral," meaning they neither hinder the economy nor boost it with easy money.

“Right now, we’ve got policy that’s right around neutral,” Hammack said Friday during an event in Cincinnati, Bloomberg reported. “I would prefer to be on a slightly more restrictive stance to help continue to put pressure” on inflation.

Hammack's views are especially important because next year she will be one of 12 voters on the Federal Open Market Committee that makes decisions on interest rate changes. (Four seats on the board rotate among 11 regional Fed banks.)

Paulson, on the other hand, said she thought interest rate policy is currently restrictive. She said she was more concerned about the job market than inflation.

"I attribute most of the increases in goods inflation in 2025 to tariffs, and I expect the bulk of these effects to disappear by middle of next year," she said in a speech in Delaware, according to prepared remarks. "I also expect housing inflation to continue to improve next year."

Like Hammack, Paulson was not an FOMC voter in 2025 but will be next year.

Goolsbee, however, is a voter and was one of three people to dissent from the majority's vote to cut interest rates by a quarter-point on Wednesday. Unusually, there were dissents in both directions—Goolsbee and Jeffrey Schmid of the Kansas City Fed voted to keep rates flat, while Trump appointee, Fed Governor Stephen Miran, voted to lower them by a half-point.

Goolsbee said he was open to cutting interest rates later in the year, but that for now, the available economic data didn't justify the cut. Key economic reports on inflation and employment were delayed by the government shutdown in October and November, and won't come out until next week.

"I believe we should have waited to get more data, especially about inflation, before lowering rates further," he wrote in a statement.

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President Donald Trump said he's willing to work with Democrats to come to an agreement on Affordable Healthcare Act subsidies.

What You Need to Know

• Affordable Care Act subsidies are set to expire at the start of the new year, potentially causing the average premium for people on ACA plans to double.
  
• President Donald Trump said Thursday evening he would be "working together" with Democrats on health care.
  
• Republicans and Democrats have clashed bitterly over whether to extend the subsidies or replace them with health savings accounts.
  

President Donald Trump and lawmakers only have until a crucial deadline Monday to stop health care premiums from surging for millions of Americans.

Dec. 15 is the deadline to enroll or renew coverage in an Affordable Care Act health insurance plan to get covered by Jan. 1, and Jan. 15 is the deadline to sign up for the whole year. If the crucial subsidies are not renewed, the average health insurance premium for the 24 million people enrolled in an ACA plan would more than double to $1,904 in 2026 from $888 in 2025, according to an analysis by KFF, a nonprofit healthcare research group.

On top of that, 2.2 million people would likely lose their insurance altogether, the Congressional Budget Office estimated in 2024.

On Thursday evening, President Donald Trump suggested he would be willing to work with Democrats on health care.

"I think we're going to start working together in health care," he said in remarks at the Congressional Ball in Washington. "I really predict that."

If Trump's conciliatory remarks turn into actual negotiations, there are only a few days to follow through. Pandemic-era ACA premium subsidies are set to expire at the beginning of the year.

What This Means For The Economy

Health care costs are a major expense at a time when many households are struggling to deal with the steep cost-of-living increases since the pandemic. Higher premiums leave consumers with far less spending power to cover the necessities.

If the issue is not settled by Dec. 15, people seeking health coverage through an ACA plan will have to sign up for one with far higher premiums, without knowing whether an extension of the subsidies will ultimately reduce them.

Republicans and Democrats have clashed bitterly over what to do about the upcoming subsidy cliff in recent months. On Thursday, a Democrat-sponsored bill to extend the subsidies for three years was shot down by Senate Republicans despite four GOP members crossing the aisle to vote in favor of it. The same day, Democrats blocked a Republican bill to replace the subsidies with a combination of high-deductible insurance plans and health savings accounts.

The ACA subsidies were at the heart of the government shutdown in October and November: Democratic lawmakers had initially demanded an extension of ACA subsidies to reopen the government. They voted to end the shutdown after 43 days, when Republicans agreed to put the Democratic proposal to a vote.

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Oracle stock fell nearly 13% this week amid concerns about its aggressive AI investments.

Key Takeaways

• Oracle shares dropped Friday following reports it had delayed delivery of some data centers for OpenAI.
• The stock ended the week nearly 13% lower after Oracle's quarterly results on Wednesday fell short of expectations and amplified scrutiny of its AI investments.

A bad week for software maker Oracle (ORCL) ended on a sour note. 

Bloomberg, citing people familiar with the matter, reported that Oracle had delayed by a year the delivery of some data centers it's developing for ChatGPT maker OpenAI. The delays were caused by material and labor shortages, according to Bloomberg.

The report weighed on Oracle's shares, already under pressure following the release of its results earlier in the week, pulling them another 4.5% lower Friday to levels not seen since June.

The company in a statement said "all milestones remain on track."

Why This Is Important

Oracle is borrowing heavily in its bid to compete with cloud computing giants like Microsoft and Alphabet. That has made investors wary of the software giant's data center investments.

“There have been no delays to any sites required to meet our contractual commitments,” an Oracle spokesperson told Investopedia. “We remain fully aligned with OpenAI and confident in our ability to execute against both our contractual commitments and future expansion plans.”

Friday’s losses extended Oracle stock’s Thursday drop, when shares tumbled more than 10% after the company’s quarterly earnings fell short of expectations and revived concerns about its AI ambitions. Oracle stock lost nearly 13% of its value this week. 

Oracle is aggressively investing in AI infrastructure to compete with cloud computing incumbents Microsoft (MSFT), Alphabet (GOOG), and Amazon (AMZN). However, unlike its largest competitors, whose profits are paying for their data center projects, Oracle is borrowing heavily. Some investors are concerned the company will struggle to repay its debt if AI demand falls short of expectations. 

Oracle’s business with OpenAI has added to investor concerns. OpenAI accounts for $300 billion, or more than half, of Oracle’s cloud computing backlog, but the start-up isn’t expected to turn a profit until the end of the decade.

Whether Oracle realizes all of its future revenue from OpenAI will depend to some extent on the latter’s ability to raise money from investors or lenders. 

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Money management firm Wealthfront went public today.

Key Takeaways

• The company known for its investing platform listed on the Nasdaq under the ticker "WLTH." In an interview, Wealthfront CEO David Fortunato said its target customers aren't into speculative investing.
• The shares finished the day not far off their $14 IPO price.

Fast-paced speculative investing might be in vogue. But at least one money manager says it isn't trying to make a quick buck.

Neither, it seems, are its investors. Wealthfront, a robo-advisor that promotes investing for the long haul, today listed on the Nasdaq under the ticker "WLTH." The company's stock opened at its $14 IPO price on what was a down day for the major U.S. indexes. It finished little changed, implying a market value above $2 billion.

The company's public debut lands amid stiff competition to woo retail investors. Its investing platform rivals those of fintech heavyweights like Robinhood (HOOD) and SoFi (SOFI), which have ramped up growth plans with new products and services and seen their stocks soar this year. Wealthfront, for its part, offers similar services—such as stock trading, savings accounts and lending—but says it's targeting a specific slice of the market: those interested in investing for the long-term.

WHY THIS MATTERS TO YOU

Between the rise of prediction markets, and meme-stock investing, retail investors have been characterized as a more speculative crowd than prior generations. Wealthfront's success with a younger cohort shows that low-cost, long-term investing remains in style for many.

"There are people that want to speculate and want to trade a lot," Wealthfront CEO David Fortunato said in an interview with CNBC. "Those aren't our clients." (Butressing its bona fides in that department: Burton Malkiel, author of the seminal book on passive investing A Random Walk Down Wall Street, is the company's chief investment officer.)

Wealthfront had more than $88 billion in assets and more than 1.3 million active users as of the end of July, with nearly 80% of them born after 1980, according to the firm's IPO documents.

The company appears to have struck a chord with millennials, with the average age of its clients around 38 years old; its products are increasingly resonating with Gen Z, those born between 1997 and 2012, the company said.

It generated revenue of over $175 million and net income of more than $60 million in the six months ended July 31, company documents show.

The company priced its IPO at the top of its marketed range at $14 per share, with the firm selling 21.5 million shares and some of its shareholders, 13.1 million. Robinhood shares finished lower on Friday, while SoFi's edged upward.

This article has been updated to correct the opening price for Wealthfront stock, and to reflect end-of-day market data.