IPOs Are Coming Back: Time to Buy the Dip on These Bank Stocks?

Initial public offerings (IPOs) were all the rage two years ago but then came to a grinding halt in 2022, creating challenges for investment banks. Goldman Sachs (NYSE: GS) has seen its stock price fall 28% since its peak in 2021, which was a record year for the investment bank.

Amid a turbulent IPO market and dwindling profits for investment banks, there is a glimmer of hope. During Goldman Sachs' quarterly earnings call, Chief Executive Officer David Solomon signaled that a potential turnaround is approaching. Is it time for investors to seize the opportunity and buy the dip?

By all measures, 2021 was a record year for investment bankers. During the year, there were 1,033 new listings. To put that in perspective, that was more listings than the prior three years combined. Companies that went public also raised a record $286 billion, which was 85% more than the previous year.

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Source Fool.com