The Anthropic IPO Is Coming: 3 Nefarious Stats You Need to Know Ahead of What May Be the Largest IPO in Wall Street's History

Source The Motley Fool

Key Points

  • Anthropic is angling to go public in November at a roughly $2 trillion valuation, likely making it the stock market’s largest-ever initial public offering (IPO).

  • Several history-driven statistics suggest retail investors will regret buying into the Anthropic IPO hype.

  • On average, 30 of the hottest tech-driven IPOs over the previous 14 years have endured peak-to-trough year-one drawdowns of 55%.

  • These 10 stocks could mint the next wave of millionaires ›

Earlier this year, Elon Musk's Space Exploration Technologies (NASDAQ:SPCX), better known as SpaceX, rewrote Wall Street's record books with its $1.77 trillion initial public offering (IPO), which raised $85.7 billion, including the underwriters' overallotment. But mere months after SpaceX took its place in history, it's at risk of being knocked off the pedestal by the developer of the Claude large language model (LLM), Anthropic.

According to various reports, Anthropic is targeting a November IPO, with a valuation in the neighborhood of $2 trillion. The roughly $100 billion the company could raise, along with its estimated market cap, would surpass SpaceX's epic IPO in mid-June.

Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »

A New York Stock Exchange floor trader is looking up in bewilderment at a computer monitor.

Image source: Getty Images.

While retail investor buzz for the Anthropic IPO could be off the charts, there are a trio of nefarious stats to know before you consider taking the plunge.

1. Next-big-thing technologies are notorious for bubble-bursting events

To begin with, every game-changing innovation since the advent and proliferation of the internet in the mid-1990s has endured a bubble-bursting event.

Although it's impossible to know ahead of time when the music will stop or what catalyst will pop the bubble in question, these bubble-bursting events share one thing in common: investors overestimating the pace and/or optimization of innovations.

In the case of artificial intelligence (AI), adoption is 100% not an issue. Businesses are spending more on capital expenditures to build-out AI data centers than they have on any preceding innovation. Demand for AI hardware and applications, such as LLMs, has been insatiable.

But it's a different story when it comes to optimizing AI solutions. It took until after the dot-com bubble burst on Wall Street for businesses to optimize their use of the internet to boost sales and profits. History tells us AI should follow a similar path.

2. Wall Street's hottest IPOs usually stumble out of the starting gate

Secondly, Wall Street's hottest IPOs don't have the best track record after they debut.

Before SpaceX went public, the analysts at Truist Financial (NYSE:TFC) published a data set on X (formerly Twitter) that examined the performance of 30 of the most popular tech-driven IPOs since mid-2012 at various time intervals.

While slightly more than half were higher three months after their debuts, they share a common theme: steep year-one drawdowns. On average, Wall Street's hottest tech-focused IPOs endured peak-to-trough drawdowns of 55%. Interestingly, SpaceX has plunged as much as 54% since reaching its all-time high just days after its debut.

The odds are great that retail investor buzz will fade quickly after Anthropic goes public.

A magnifying glass is laid atop a financial newspaper that's enlarging a subhead that reads,

Image source: Getty Images.

3. Anthropic's valuation is a statistical eyesore

Last, but certainly not least, Anthropic's valuation is a statistical eyesore.

History says that companies valued at or above a price-to-sales (P/S) ratio of 30, which are at the forefront of a next-big-thing trend, haven't been able to sustain a trailing 12-month (TTM) P/S ratio above 30 for any extended period.

Despite Anthropic's lightning-fast sales growth, its TTM P/S ratio should be well above 30 when it debuts, as predicted, in November. Once Anthropic's financials come into focus, several weeks after its debut, keeping the wind in the company's sails may prove impossible.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 933%* — a market-crushing outperformance compared to 212% for the S&P 500.

They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.

See the stocks »

*Stock Advisor returns as of October 1, 2026.

Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Truist Financial. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changedRate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
Author  Irene Q.
Sep 23, Wed
Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
placeholder
Four jobs reports in five days: what JOLTS, ADP, claims and the September payrolls mean for the October Fed decisionThe US labour market faces its densest data week of the month. JOLTS job openings land Tuesday (7.2 million expected), ADP on Wednesday (70,000 expected), initial claims on Thursday and the September non-farm payrolls on Friday (100,000 expected, down from 162,000). Markets price a 64%-70% chance of another quarter-point Fed hike on October 28. The dollar index sits at 100.77 and the S&P 500 at 7,729.8.
Author  Mitrade
Sep 28, Mon
The US labour market faces its densest data week of the month. JOLTS job openings land Tuesday (7.2 million expected), ADP on Wednesday (70,000 expected), initial claims on Thursday and the September non-farm payrolls on Friday (100,000 expected, down from 162,000). Markets price a 64%-70% chance of another quarter-point Fed hike on October 28. The dollar index sits at 100.77 and the S&P 500 at 7,729.8.
placeholder
Nvidia's $150 billion buyback landed — and the AI sector fell anyway. That's the signal worth tradingNvidia closed up 1.68% at $228.86 on 28 September after announcing a $150 billion share repurchase authorisation, the largest single corporate buyback on record, while the rest of the AI complex sold off: AMD -3.6%, Micron -2.6%, Meta -4.8% and the Philadelphia Semiconductor Index -1.61%. The divergence is not noise. Capital is rotating toward cash-flow certainty, not abandoning the AI theme. With Micron reporting after the close on 30 September, here is what the split means.
Author  Irene Q.
Sep 29, Tue
Nvidia closed up 1.68% at $228.86 on 28 September after announcing a $150 billion share repurchase authorisation, the largest single corporate buyback on record, while the rest of the AI complex sold off: AMD -3.6%, Micron -2.6%, Meta -4.8% and the Philadelphia Semiconductor Index -1.61%. The divergence is not noise. Capital is rotating toward cash-flow certainty, not abandoning the AI theme. With Micron reporting after the close on 30 September, here is what the split means.
placeholder
【Daily Brief】30-year Treasury tops 5.59%, S&P 500 slips to 7,670 and gold holds $4,180 — PCE lands tonightThe 30-year Treasury yield closed at 5.59%, its highest since June 2002, and the Dow fell 131.59 points to 51,349.92. US consumer confidence dropped to 81.9, a 12-year low, and JOLTS job openings fell to 7.1 million. August PCE and Q3 GDP both land at 8:30am ET tonight.
Author  Suzie
Sep 30, Wed
The 30-year Treasury yield closed at 5.59%, its highest since June 2002, and the Dow fell 131.59 points to 51,349.92. US consumer confidence dropped to 81.9, a 12-year low, and JOLTS job openings fell to 7.1 million. August PCE and Q3 GDP both land at 8:30am ET tonight.
placeholder
Gold falls to near $4,150 as higher Treasury yields, oil prices outweigh softer PCE inflationGold price (XAU/USD) tumbles to near $4,150 during the early Asian session on Thursday, pressured by elevated US Treasury bond yields. Traders await the US September employment data for fresh impetus, which will be released later on Friday. 
Author  FXStreet
Yesterday 01: 26
Gold price (XAU/USD) tumbles to near $4,150 during the early Asian session on Thursday, pressured by elevated US Treasury bond yields. Traders await the US September employment data for fresh impetus, which will be released later on Friday. 
goTop
quote