The S&P 500 index remains near its all-time high, yet concerns about an equity bubble persist. Despite this, Kostin highlights a general sense of slack sentiment in the market. Interestingly, certain sectors, such as quantum computing stocks, are beginning to show signs of renewed investor enthusiasm. Goldman’s sentiment indicator recently improved to -0.6, up from a low of -0.9, suggesting a potential shift in market dynamics.
Kostin predicts that the markets for initial public offerings (IPOs) and mergers and acquisitions will see increased activity. According to Goldman Sachs, the dollar value of announced M&A deals has risen by 29% year-over-year, while the number of transactions has increased by 8%, totaling 566 compared to the same period last year. “We expect IPO and M&A activity will increase in 2026 alongside accelerating U.S. economic growth, improving CEO confidence, and a rising equity market,” he stated in a recent research report.
Kostin also mentioned that Goldman’s IPO Issuance Barometer currently stands at 139, placing it in the 88th percentile since 2002. He forecasts a 15% increase in the number of completed U.S. M&A deals in 2026. In light of this optimistic outlook, Goldman Sachs’ equity research analysts have identified a selection of 49 potential M&A candidates that have a 15% or greater chance of being acquired. Notably, Electronic Arts was already on Goldman’s list of buyout candidates prior to the recent announcement.
Among the other potential targets identified by Goldman is Zoom Communications, a prominent video conferencing provider. However, Don Bilson, head of event-driven research at Gordon Haskett, recently suggested that any acquisition may go the other way, especially after Zoom signaled strong M&A intentions at a recent investor event. “We have a very healthy balance sheet. It’s a good time, I would argue, to sort of buy a company [so] stay tuned,” said CFO Michelle Chang. With nearly $8 billion in cash reserves, Zoom has significant resources at its disposal, although its stock has lagged this year, up less than 4%.
Insmed, a biopharmaceutical company, is another name on Goldman’s radar. The company recently achieved a major milestone with FDA approval for its oral drug targeting a specific lung disease. Wall Street analysts are optimistic, with 12 out of 20 rating it a buy and seven labeling it a strong buy. The stock has more than doubled in 2025 and has surged 40% in just the past three months.
Additionally, TripAdvisor and Vera Therapeutics have also surfaced on Goldman’s buyout list, highlighting the diverse range of companies that could be involved in future M&A activity.
