The capital markets are changing at an unprecedented pace and IROs must be ready to adapt. As we look toward 2025, trends such as the resurgence of IPOs, the rise of passive investing and the increasing influence of retail investors are reshaping the way companies communicate with shareholders and navigate the market.
We’ve seen share buybacks dominate the conversation heading into early 2025, but there’s another major opportunity on the horizon: retail investors.
With advancements in technology and user interfaces across commission-free brokerage platforms like Robinhood and Weibull, retail participation has skyrocketed, now accounting for up to 25 percent of daily market volumes. This growing segment offers a unique, underutilized resource for IROs to generate momentum and support for their stocks.
In this evolving environment, companies must rethink their IR strategies. Below are the key trends shaping 2025 and actionable insights on how to stay ahead in the capital markets.
1. IPOs are back (but capital is scarce)
While 2025 is poised to see an uptick in IPO activity, raising capital will remain challenging. Investors are cautious, making it essential for companies to deliver compelling business models, clear value propositions and flawless execution to stand out and successfully garner investor attention.
2. The rise of passive trading
With fewer funds flowing to active stock pickers, passive investment vehicles continue to dominate. Companies must assess how passive investing influences their stock’s trading dynamics, including the factors algorithms associate with their business. Companies must identify desirable factor exposures and execute on the key drivers of their business model that can align with the desired passive strategies.
3. Small caps face unique challenges
Smaller companies will find it tougher to compete for attention in a market driven by passive investment strategies and limited capital flowing into small-cap funds. To stay competitive, companies must adopt creative IR strategies that prioritize differentiated communication, effectively engaging both institutional and retail shareholders.
4. Roadshows are fading
The traditional roadshow is on life support, as virtual engagement and digital-first strategies have commoditized in-person meetings, particularly for small-cap companies. While face-to-face interactions remain invaluable, they should be reserve for moments of significant market impact — such as post-analyst days, major product launches, or after M&A announcements — where direct engagement helps crystallize key messages.
For routine communications, companies should embrace virtual formats like webinars, podcasts, and other digital channels, offering a cost-effective and scalable way to deliver a controlled narrative to a broad audience.
5. IR will be more data-driven than ever
As the IR function evolves, the reliance on data and analytics will deepen. Companies that invest in tools for ownership intelligence, sentiment analysis and performance metrics will have a distinct advantage.
6. Institutional investors will need more TLC
In a competitive market, institutional investors will demand more attention. Building trust, providing tailored insights and maintaining proactive communication will be essential to keeping them engaged.
7. Retail investors increasingly shaping market sentiment
Retail investors are poised to wield greater influence than ever, with online platforms like Reddit, Twitter, Substack and Discord amplifying their voice and shaping market sentiment. Institutional investors are increasingly attuned to these dynamics, recognizing the growing importance of retail narratives and their impact on trading activity.
By monitoring retail sentiment across these platforms, institutions can gain valuable insights into market trends and public opinion, further helping them execute on investment decision-making strategies.
8. Social listening becomes core to IR programs
Social media isn’t just for brand monitoring anymore — it’s a vital tool for IR. Social listening will take center stage in IR strategies, helping companies stay ahead of investor sentiment and spot potential issues before they escalate.
Alyssa Barry is president of Alliance Advisors Investor Relations
Alyssa Barry
Alyssa Barry is president of Alliance Advisors Investor Relations, an advisory firm offering a unique approach that delivers disciplined and efficient strategies for managing client communications and capital market relationships.
