Anthropic IPO: 1 Key Lesson Investors Can Learn From SpaceX
Blockbuster IPOs rarely live up to the hype.
Overview
The Space Exploration Technologies (NASDAQ: SPCX) IPO was one of the most highly anticipated public offerings in years. Within a few days of going public, SpaceX had a valuation of $2.7 trillion after raising nearly $86 billion in funding.
Then things started going sideways. The stock began falling amid fears that SpaceX is spending too much on artificial intelligence (AI) infrastructure, and shares still trade below their opening price of $150 as of this writing. At one point, the share price fell enough to wipe out more than $1 trillion from SpaceX's valuation over a one-month span.
Details
Another AI company, Anthropic, could go public as soon as next month. Like SpaceX, it's a highly anticipated IPO. But investors would be wise to take the recent SpaceX sell-off as a warning that buying IPO stocks when they first go public is rarely a good move. History shows it's far better to wait before buying -- here's why.
Source
Originally published at www.fool.com.