Sleeper IPO Making Comeback, Why Smart Money Is Watching BROS Closely

When Dutch Bros (BROS) IPO’d in 2021, it did so into the teeth of a bear market at a time when risk appetite was shrinking and new issues struggled to hold gains.

Fast-forward to 2025, and we’re starting to see signs that BROS is staging a quiet comeback, and seasoned traders are taking notice.

Let’s unpack why this stock deserves a spot on your radar.

Key Points

• Dutch Bros is building a textbook “crossback” setup, tightening on key EMAs after a major breakout, signaling potential for another leg up.

• The company IPO’d during a bear market, which often filters for fundamentally strong businesses that can weather economic downturns.

• Rising volume, technical strength, and improving fundamentals suggest this sleeper IPO may soon be back in the spotlight.

The Bear Market IPO Advantage

There’s an old-school wisdom in the markets that only the best companies go public during a bear market. Why? Because investor enthusiasm is low, capital is harder to raise, and only businesses with serious traction or strong fundamentals can stomach the environment.

Dutch Bros hit the market in September 2021 with a bang, trading as high as $81, but quickly fell victim to broader market weakness, bottoming near $20.

For a long time, it drifted quietly, forgotten by many. But the best setups emerge when no one’s watching.

The “Crossback” Setup—A Trader’s Dream

Now, BROS is flashing signs of life.

Kell points out a “crossback” formation—a term used to describe a technical pattern where the stock powers above major moving averages and then pulls back, often “crossing back” onto key EMAs like the 10-day and 20-day before launching again.

It’s a classic bullish continuation setup, particularly compelling when combined with rising volume and relative strength. Clear bullish signs include:

• The stock broke through a multi-year resistance zone around $50–55.

• Volume exploded higher as price pushed toward $86.

• And now? It’s pulling back orderly, with a potential bounce from the 10-day EMA just around the corner.

This is the kind of setup that professional momentum traders wait for.

Back Into the Highs, But This Time With Strength

Dutch Bros isn’t just retracing old highs—it’s doing it with authority. The recent move higher has been supported by strong earnings beats, rising EPS (note the consistent improvements in quarterly numbers), and a growing base of loyal customers fueling expansion across the U.S.

This isn’t the same stock from 2022. Fundamentally, it’s stronger. Technically, it’s cleaner. And the smart money knows that post-IPO digestion often leads to monster second legs—especially when the broader market shifts from risk-off to risk-on.

Bottom Line

Dutch Bros has gone from IPO darling to forgotten name and now, potentially, back to momentum leader.

If the stock tightens here on the EMAs and volume stays healthy, it could be primed for another leg up. And as seasoned trader Brian Zinman reminds us:

“Only the best IPOs come during a bear market.”