A Disappointing IPO Didn't Stop Meta Platforms: Here's Why That Matters for the Anthropic IPO

As soon as the week of Nov. 16, artificial intelligence (AI) start-up Anthropic could go public. While details like the initial public offering (IPO) date and the initial pricing of the shares have still not been finalized, we do know three things: Anthropic will trade on the Nasdaq stock exchange, it will trade under the ticker ANT, and this is a highly anticipated IPO, as it will be one of the first major pure-play AI companies that retail investors can own a piece of.

There's no way to know what the early price action will look like. But even if Anthropic stock stumbles right out of the gate, that doesn't mean it won't eventually turn out to be a long-term winner. That's because exactly that happened with Meta Platforms (NASDAQ: META).

Image source: The Motley Fool.

The IPO lesson from Meta

While Meta, formerly Facebook, isn't the same type of company as Anthropic, they share some key similarities. Before Meta went public, there really wasn't a way to invest in the rising trend of social media, just like there hasn't been a major pure-play AI company to invest in since privately held OpenAI launched ChatGPT in November 2022 and kicked off that trend.

The popular social media platform of the early 2000s, MySpace, never went public, and Twitter, now X, didn't IPO until 2013. So when Meta went public in May 2012, it generated a lot of fanfare, hype, and high expectations.

That said, the IPO did not go smoothly. Trading on IPO day was delayed due to technical difficulties; some investors didn't receive confirmation of their trading activity, and the stock closed its first day of trading to the public at $38.23, barely above its offering price of $38.

Following those first-day issues, things did not get much better. According to research from The Motley Fool, Meta was one of the top 10 IPOs of all time by capital raised, but it had the worst three-month stretch of any of those IPOs, with the stock price falling 47%. By early September, it was down even further. After that rough stretch, it was understandable that some shareholders were wondering whether investing in Meta early had been a mistake.

Those who held on or even added to their position, however, are likely glad they did. Not only was Meta's stock price up by 289% five years after its IPO, but by May 2026, 10 years afterward, shares were up 1,572%.

What to consider before investing in Anthropic

Anthropic may not follow a similar path when it debuts. But the overall lesson from Meta is that a company's first few months of trading don't necessarily make or break it as an investment. That's important to remember on an IPO day.

That said, it also means the early days around an IPO itself won't make retail investors rich. To capture the biggest gains that Anthropic may offer will require conviction to stand by the stock through difficult periods. Investors will need to give it enough time to deliver meaningful gains, which can take years. If you lack that sort of conviction about a given stock, or you don't have that type of long time horizon for the investment, that's not a bad thing for an investor to admit to themselves. Recognizing in advance where you stand can help you avoid a lot of headaches, not to mention spare you from potential losses if you'd be an emotional seller in the face of early stock price declines.

Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.