Unusual Machines Shares Jump After CEO Warns of Short Seller Attack

• There's been a 36% increase in initial public offerings compared to 2023.

• Yet, despite the strong stock market rally, IPO activity remains below 2020 and 2021 levels.

• The top 10 IPO performers include Reddit and NANO Nuclear Energy, with significant returns.

The IPO market picked up in 2024, with 210 companies going public this year.

Many companies are still reluctant to embark on an initial public offering after the brutal bear market in 2022 shaved more than 20% off of the S&P 500. The hesitation remains, despite the fact that the stock market has soared since then, with the S&P 500 and Nasdaq 100 sitting at record highs and 2024 on track to see a second straight year of gains of over 25% for the benchmark index.

About 40 companies have withdrawn their IPO filings this year, compared to seven that withdrew plans to go public in 2023. While 2024's IPO activity represents an increase of 36% compared to last year, it's still well below the IPO activity seen in 2020 and 2021, when 480 and 1,035 companies went public, respectively.

Some of the biggest companies investors are waiting for to go public include Stripe, Klarna, CoreWeave, and SpaceX.

Still, some well-known companies, including Reddit, Ibotta, and Rubrik, debuted on the public markets this year — and some of these companies have delivered massive share gains for investors.

These are the top 10 performing IPOs of US-based companies in 2024, as of December 9.

1. Rubrik

Ticker: RBRK
IPO Date: April 25
Return since IPO: 112%

1. Bowhead Specialty Holdings

Ticker: BOW
IPO Date: May 23
Return since IPO: 118%

1. Unusual Machines

Ticker: UMAC
IPO Date: February 14
Return since IPO: 118%

1. American Healthcare REIT

Ticker: AHR
IPO Date: February 7
Return since IPO: 138%

1. zSpace

Ticker: ZSPC
IPO Date: December 5
Return since IPO: 223%

1. Loar Holdings

Ticker: LOAR
IPO Date: April 25
Return since IPO: 227%

1. Astera Labs

Ticker: ALAB
IPO Date: March 20
Return since IPO: 239%

1. LandBridge Company

Ticker: LB
IPO Date: June 28
Return since IPO: 267%

1. Reddit

Ticker: RDDT
IPO Date: March 21
Return since IPO: 379%

1. NANO Nuclear Energy

Ticker: NNE
IPO Date: May 8
Return since IPO: 525%

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Key Takeaways

• Shares of PSQ Holdings, the owner of "anti-woke" marketplace PublicSquare, and Unusual Machines, a drone parts provider, each surged more than 200% after announcing relationships with Donald Trump Jr. in recent weeks.

• The companies each generate less than $10 million of quarterly revenue and are unprofitable, but both now have nine-figure market capitalizations.

• Trump Jr. is not expected to join his father in Washington, but he and his siblings could still have sway within his inner circle.

Call it the junior Trump Bump—the stocks of several obscure companies have soared in recent weeks after announcing tie-ups with Donald Trump Jr., the President-elect's eldest son.

Shares of PSQ Holdings (PSQH), the operator of "anti-woke" marketplace PublicSquare, nearly tripled in value on Tuesday when it named Trump Jr. to its board of directors. He's expected to hold the position until at least the company's 2026 annual shareholder meeting.

The announcement came just a week after Unusual Machines (UMAC), a drone parts supplier, announced it had appointed Trump Jr. to its advisory board, igniting a flurry of speculative buying. Investors traded 56 million shares the day of the announcement, more than twice the stock's total volume since it began trading in February. As of mid-November, Unusual Machines had just 8.3 million outstanding shares to trade.

Since last month's presidential election, the stocks of several companies have soared on their proximity to Trump. Tesla (TSLA) shares have gained nearly 50% thanks to Chief Executive Officer (CEO) Elon Musk's close relationship with the President-elect. Shares of Liberty Energy (LBRT) rose 12% the week after Trump named its CEO, Chris Wright, as his Energy Secretary.

Small Companies, Big Stock Boost

The two companies are both small and new. PSQ Holdings went public via a merger with a special purpose acquisition corporation (SPAC) in July 2023. Shares began trading above $10 that month but had slid to just over $2 by the time Trump Jr. joined the board. In its most recent quarterly results, it reported a net loss of $13.1 million on $6.5 million in revenue.

Unusual Machines has been public for less than a year. It lost $2.1 million on $1.5 million of revenue in the three months through September.

Each stock's surge has ballooned its market capitalization. PSQ Holdings' market value stood at about $167 million at midday on Thursday, while Unusual Machines' was about $126 million. 

Trump Jr. on Wall Street

Trump Jr. and his siblings are not expected to take roles in the White House next year, though he and his younger brother Eric were active on the campaign trail. They are expected to remain close to their father and have at least some influence over who gets his ear.