Consumer financial advice website NerdWallet has reportedly filed for an IPO.

What Happened? Reuters reported that NerdWallet has confidentially submitted IPO filings to U.S. regulators and hired a team of investment banks led by Morgan Stanley MS 2.94% to underwrite its IPO process.

What It’s Important: The U.S. IPO market has been red-hot for over a year now, and NerdWallet could be the latest in a long list of recent high-profile IPOs. Sources say the company could seek an IPO valuation of up to $5 billion.

NerdWallet and other financial technology companies have benefitted from a boom in retail stock trading activity since the beginning of the pandemic in 2020.

Coinbase Global Inc (COIN) is one recent example of a financial technology company striking while the iron is hot. Coinbase completed its IPO in April and now has a $52 billion market cap. Trading platform Robinhood has also filed for an IPO and could fetch a valuation in the $40 billion range.

NerdWallet was founded in 2009 and provides financial guidance to its more than 100 million users. NerdWallet reportedly makes more than $150 million in revenue annually, according to TechCrunch.

Competitor Credit Karma, which also has more than 100 million users, was acquired by Intuit Inc. (INTU) for $7.1 billion last year.

NerdWallet’s IPO date has not yet been announced, but the confidential filing of its IPO paperwork suggests the company is likely going public sometime in the next several months.

Benzinga’s Take: High-profile tech IPOs inspire a lot of market enthusiasm, but NerdWallet investors should be on the lookout for early irrational exuberance. For example, Coinbase shares initially spiked from its IPO price of $250 to as high as $429.54 on its first day of trading, but the stock has since settled back down to $259.31.