The valuation of Stripe reflects more than just potential. Stripe is no longer a step away from being the foundation of contemporary platforms. Another point that investors take into account is the technical advantage of Stripe. It is a lot of money that becomes part of the business; the more deeply the company integrates, the further its value increases. The startup has become a headache with a steady move into regions with vibrant markets across Asia, Latin America, and Africa. Despite the debate, three factors are driving Stripe’s valuation upward in 2025.
Stripe operates as a financial infrastructure platform for online businesses. Prospect’s machine lxcriticalg model has been trained on the same data top-tier investors use to project the likely range of outcomes for Stripe’s equity. For a potential employee, this generally offers more stability and structure, but the stock options may not have the same explosive growth potential as an earlier-stage venture. But with this deal, it appears that an initial public offering may not take place until next year. Instead, Stripe continues to operate as one of the largest privately held tech companies in the U.S., alongside firms like OpenAI, SpaceX, and Databricks.
Each service comes with its own pricing model with some charging a flat amount per transaction, a percentage per transaction, a flat monthly fee or a one-time payment. Stripe’s product offering is surprisingly extensive. Stripe collects a percentage of every transaction that gets processed through its platform. The other option is opting for a secondary offering.
Revenue details
PayPal, one of the earliest entrants in the digital payments space, is arguably Stripe’s biggest competitor due to the size of its customer base and portfolio of competing products. In 2016, an investment in Stripe valued the company at $9.2 billion, making the Collison brothers the world’s youngest self-made billionaires, worth at least $1.1 billion each. There are xcritically 57 institutional investors who hold Stripe stock.
Valuation Ratios Every Investor Should Know
- Any securities are offered by NPM Securities, LLC, member FINRA/SIPC.
- Smart investors also recognize the value of continuous education in this rapidly evolving sector.
- Get an email with the top market-moving news in bullet point format, for free.
- The easiest way to buy Stripe stock is to wait until after the IPO and buy it through your regular broker.
- The company offers a fintech platform that includes banking-as-a-service, embedded finance and payments, remittance, and compliance management systems.
Stripe is one of the hottest companies in the start-up world.
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- As a privately held company, Stripe has no public stock price.
- Total payment volume grew 38% year-over-year, reaching $1.4 trillion.
- Disclosure rules differ for private and public companies, so it may not always be possible to know the complete ownership (cap table) of a private company like Stripe.
- We provide access to a range of asset classes and investment strategies that span private equity, hedge funds, crypto, real estate, and other alternative assets.
- Past performance is not indicative of future results, and IPO shares may be subject to unpredictable price fluctuations.
The company specializes in business-directed online payment processing. The fintech company is the highest-valued unicorn in America. Join 5,000+ investors using Ticker Nerd’s Market Radar to stay ahead of major market moves, analyst upgrades, and trending opportunities — for free.
The company is investing in growth with the stated goal of reaching profitability. Looking forward, Stripe continues to pursue its mission of increasing the GDP of the internet by expanding its global reach and moving upmarket to serve larger enterprise xcritical cheating clients. Stripe’s Series I funding round means it’s a very mature, late-stage company, not a scrappy startup. To help you manage your Stripe equity, Prospect has run the company through our machine lxcriticalg model.
Since Stripe is still a private company it has not publicly revealed its financial statements or performance. Since these transactions would take place on the secondary market for private stocks the people who would buy shares are typically VC firms or angel investors. As a private company, buying or selling Stripe stock is not as straightforward as trading public securities. While Stripe is a private company, it is sometimes possible for employees and early investors to sell their shares. Managing private company stock requires careful consideration of your personal financial goals and complex tax implications. The company provides a suite of products that allow companies to accept payments, manage revenue, and automate financial operations.
Is Stripe Still Worth It in 2025?
Regular trading activity in fintech stocks and ETFs can strengthen your profile as a potential IPO participant. Historical fintech IPOs suggest allocating 2-3% of your total investment portfolio, though individual circumstances vary. While the company hasn’t announced specific plans to go public, building a strategic position ahead of any announcement can maximize opportunities when they arise. For context, consider how this private status affects Stripe’s market position, as discussed in the previous section.
Stripe Valuation as of Last Funding Round
Stripe also revealed in its annual letter on Thursday that it generated $1.4 trillion in total payment volume in 2024, up 38% from the year prior. Get an email with the top market-moving news in bullet point format, for free. All investments involve risk, including the potential loss of principal, and past performance does not guarantee future results. This communication is for informational purposes only and is not a recommendation, solicitation, or research report relating to any investment strategy, security, or digital asset. Stock Analysis is not a broker-dealer or investment adviser. Then, in February 2025, the company finalized a secondary transaction that valued it at $91.5 billion, just shy of its peak.
Stripe Company Overview
Stripe was one of the more elusive private company stocks until availability became more widespread in the past few years. It’s a challenge to acquire shares of a stock that is not trading on the public markets. Stripe will eventually need to become a publicly traded company to allow early investors to liquidate shares. Businesses of every size—from new startups to public companies—use our software to accept payments and manage their businesses online. As for the company’s long-awaited public market debut, Collison said, “We are not dogmatic on the public vs. private question,” and “have no near-term IPO plans.”
While competitors may excel in specific niches, Stripe’s broad platform approach creates multiple revenue streams and defensive positions across the financial technology landscape. Recent partnerships showcase Stripe’s evolution from payment processor to financial infrastructure provider. Unlike traditional payment processors that prioritized banks, Stripe built its platform for developers. The brothers noticed a common thread among tech entrepreneurs – everyone hated dealing with online payments. Additional fees may apply to other individuals or entities executing on the self-service platform or through our market specialists. The tech platform uses modern intelligence to improve healthcare financial experiences for everyone.
There is no assurance that the full amount of your request – or any shares at all – will be allocated to you by your broker. In any case, you will have to request IPO shares from your broker after qualification. Retail investors can participate in IPOs through several major brokers. You won’t get the same price that you’d get in the pre-IPO market, but your risks will be lower. Pre-IPO investing is not easy, and shares may not be available.
Funding Rounds
A few platforms have evolved to give these individuals a way to liquidate their holdings before the IPO. These shareholders might have multi-million dollar net worths because of their stock holdings, but the stock is not liquid because it doesn’t trade on an exchange. Founders, early employees, and investors often find themselves in a difficult predicament.
Investors interested in Stripe might want to take a closer look at publicly traded options while they await its potential IPO. Investors then receive a percentage of the future sales of these options when the company completes a liquidity event, like an IPO. In its 2024 annual letter, the company announced it was profitable in 2024. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Cost basis and return based on previous market day close. Etsy is a leading e-commerce platform for handmade and vintage products.
It may conduct additional tender offers to provide employee liquidity and bring in new venture investors without raising fresh funds. Its APIs allow web and mobile app developers to integrate payments (both receiving and sending) into everyday business operations. In addition to these investors, co-founders and brothers Patrick (CEO) and John (president) Collison likely own billion-dollar stakes, though the exact equity breakdown is not public information. On Public, you can invest in stocks, ETFs, Treasuries, corporate bonds, and cryptocurrencies, all on one of the most modern investing platforms. When Stripe does go public, you’ll be able to look up its stock symbol and buy it in your brokerage account.
Is Stripe publicly traded?
Caplight estimates the Stripe stock price is about $35 per share as of February 2025. The moral here is that spending significant effort to own a company before the IPO may not be worth it in the end. In many cases, investors can get in at a price at or below the IPO price. Check out this list of best brokers for IPO investing to learn more about IPO access for retail investors. TradeStation has a more established track record of accessing more than 400 IPOs and secondary offerings via its partnership with Click Markets. Formerly exclusive to Wall Street’s best customers, IPO access is now more attainable to retail investors.









