What to know about the Anthropic IPO
Anthropic is preparing for a potentially large IPO, prompting a rush among other companies to finalize their own deals. Marlena Lee from Dimensional Fund Advisors discussed the historical underperformance of IPOs, noting that the 20 largest US IPOs since 2005 underperformed indices by about 33% in the first 6-12 months. She advises investors to wait before investing in IPOs due to initial high valuations and low profitability.
The performance of Anthropic's IPO could influence the broader market for mega IPOs, especially given past disappointments with other large listings like SpaceX and SK Hynix, and the current tightening IPO calendar.
