Digital Health and Ad Tech IPOs Face Market Scrutiny as New Debuts Approach

The digital health and advertising technology industries are preparing for a critical moment as Hinge Health Inc. and MNTN Inc. gear up for their initial public offerings. These debuts hold particular significance, spotlighting whether the recent revival in US IPO activity, after a prolonged market chill, can sustain momentum. Both sectors, despite their promise, accumulate cautionary tales from previous listings, underscoring structural hurdles that complicate investor enthusiasm.

Lessons from Previous Public Entrants

Several notable companies have illustrated the sharp volatility inherent to public market entries in these spaces. SmileDirectClub's $SDC dramatic share price collapse and closure in 2023 serve as a stark warning for digital healthcare startups. Teladoc Health Inc. $TDOC, once a leader in virtual care, continues to trade at valuations nearly two-thirds below its IPO pricing, exposing the challenges faced in delivering scalable, investor-friendly healthtech models. For adtech, Trade Desk Inc. $TTD stands as a rare exception—thriving as an independent force alongside dominant players like Alphabet Inc.’s Google $GOOG. Beyond a handful of successes, most advertising technology firms struggle in a landscape where scale, data access, and continuous product innovation are crucial for lasting growth.

Key Factors Influencing Upcoming IPO Outcomes

1. Investor Confidence in Business Models. Skepticism runs high after previous disappointments, especially regarding the long-term viability of digital-health and adtech solutions under public market scrutiny.

2. Market Saturation and Competition. Digital health and adtech ecosystems are characterized by a proliferation of startups, intensifying competition and complicating revenue growth.

3. Demand for Profitable Operations. IPOs in 2025 face heightened pressure to exhibit near-term profitability, a pivot from earlier eras that focused purely on user expansion or disruptive potential.

4. Regulatory and Data Privacy Risks. Strict oversight in healthcare and data-driven advertising creates additional operational and reputational vulnerabilities for new entrants.

5. Track Record of Public Market Performance. Historical underperformance by sector peers continues to weigh on demand for upcoming listings, impacting pricing and post-IPO trading.

Outlook for Hinge Health and MNTN

For Hinge Health and MNTN, the current climate demands robust growth projections and clear paths to profitability to secure investor trust. Both will face comparisons to sector veterans and the persistent headwinds that restrained prior IPOs. Success hinges not only on business fundamentals but also on their ability to articulate unique value propositions within crowded and rapidly evolving sectors.

The upcoming public listings in digital health and advertising technology sectors arrive at a pivotal juncture for US capital markets. The narrative surrounding Hinge Health and MNTN may serve as a bellwether for investor sentiment toward emerging tech, potentially shaping the trajectory of future IPO activity.