Green shoots for the IPO market, but investors ask where are unicorns like Instacart, Klarna

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Larger companies like Reddit and StubHub need strong signals that the coast is clear. 'There are still some dark clouds hovering,' one analyst says.

The two main issues for a revival in initial public offerings are 1) a strong market, and 2) stable interest rates. With the S & P 500 set to trade down for a fourth straight day on Thursday, investors are watching to see if the recent rally in the S & P 500 is sustainable. Meanwhile, short-term Treasury yields have been trading at the high end of their recent range and are being careful watched.

Where are the unicorns? The big issue now is, what about the larger players that have been potential IPO candidates for a long time, such as Fogo de Chao, Panera Bread, Reddit, Instacart, Stripe, Impossible Foods, Fanatics, StubHub and Klarna? Chip designer ARM is already in talks with clients about being early-stage investors in its IPO, but investors say many so-called unicorns are still unsure whether now is the right time to jump in.

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