{"id":900939,"date":"2026-10-31T10:16:12","date_gmt":"2026-10-31T10:16:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/900939\/"},"modified":"2026-10-31T10:16:12","modified_gmt":"2026-10-31T10:16:12","slug":"advisors-say-take-it-slow-on-anthropic-ipo-hype","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/900939\/","title":{"rendered":"Advisors Say Take It Slow on Anthropic IPO Hype"},"content":{"rendered":"

As artificial intelligence juggernaut Anthropic prepares to go public, financial advisors have similar advice for clients as they did for SpaceX\u2019s mega IPO earlier in the year<\/a>\u2014there\u2019s no hurry to get in.<\/p>\n

Anthropic filed Form S-1 with the SEC this week, with plans to list on Nasdaq in November under the ticker symbol ANT. The IPO, which is expected to raise over $100 billion, pegs the company\u2019s potential valuation at $1.5 trillion to $2 trillion, rivaling the record-setting $1.77 trillion valuation of the SpaceX IPO, which ultimately raised $85.7 billion. It\u2019s also a marked increase from a Series H funding round in May that valued Anthropic at $965 billion.<\/p>\n

So far, advisors say they\u2019ve received few to no inquiries from clients about gaining exposure to Anthropic at its IPO price. Erik Kratz, CIO at Chicago-based RIA Arena Private Wealth, and Brian Glenn, CIO at Madison, N.J.-based RIA Premier Path Wealth Partners, said their firms have not seen a pick-up in interest. Travis Poodiack, co-founder of Keene, N.H.-based financial planner Birch Financial Group, said some clients expressed interest in the Anthropic IPO, but the enthusiasm has been less widespread than for the SpaceX filing. He estimated that about a quarter of the firm\u2019s clients asked about the SpaceX IPO, with some going on to buy shares. With Anthropic, the interest has been closer to 10% of clients.<\/p>\n

Related:How New Information Technology Affects Asset Pricing Anomalies<\/a><\/p>\n

There might be multiple reasons for the more muted interest\u2014ranging from the lack of \u201cElon effect,\u201d according to Poodiack, to the more crowded field of pure AI companies compared to SpaceX\u2019s multi-faceted business.<\/p>\n

\u201cThere are so many big AI names,\u201d said Glenn, who also noted it may just be too early in the process to gauge the true level of client interest. \u201cPeople know OpenAI, people know Anthropic, but they probably know it more as their end tool, which is Claude. So, the average investor may get those confused. And then there are other ones\u2014there\u2019s the SpaceX Twitter one, which is Grok, Microsoft has Copilot. Because of this, there is competition in the space, and it doesn\u2019t create as much enthusiasm, vs. SpaceX, which was sort of one of a kind [with multiple revenue lines] and may have created more of a buzz.\u201d<\/p>\n

For clients considering exposure to Anthropic in the public markets, all three CIOs offer the same advice: take a slow approach and expect to potentially wait five to 10 years before the stock begins to see a steady rise in value. Highly anticipated IPOs tend to follow a predictable pattern\u2014and SpaceX proved no exception\u2014with a pop of excitement in the first days after a listing, followed by a decline. SpaceX stock debuted at $135 per share and quickly rose to a high of $226 per share before falling to $127 per share within about a month<\/a>. As of Thursday morning, it was trading at approximately $143 per share. Advisors say there is no reason to believe Anthropic will see a different trajectory.<\/p>\n

Related:Gen Z Investors Are Switching Up Their Portfolios Ahead of the Midterms<\/a><\/p>\n

In fact, given the recency of the SpaceX IPO, it might be another reason investors haven\u2019t been in a hurry to participate in the Anthropic public offering, Glenn said.<\/p>\n

\u201cIf you bought it at the IPO price before it went into the market or at the opening price, you haven\u2019t really had a phenomenal return. People realized that you don\u2019t actually miss the boat if you don\u2019t buy it on the first day.\u201d<\/p>\n

For a long-term investor who understands they may not see real returns until 10 years from now, there will be little difference between buying the moment the stock goes public or waiting some weeks or months to get in at a potentially lower price, agreed Poodiack.<\/p>\n

Meanwhile, while Anthropic looks like a promising bet, companies in the AI sector tend to come with their own set of challenges, according to Kratz. To start, much of the company\u2019s value was created while it remained private, so the investors most likely to reap high returns are those who held private stakes in Anthropic pre-IPO.<\/p>\n

Related:Fifth Third Wealth Advisors: Why CIO Chris Osmond Is Bullish on Infrastructure<\/a><\/p>\n

Second, AI is not only a high-growth but also an extremely capital-intensive business. Anthropic owes hundreds of billions of dollars\u2014at least $516 billion\u2014to everyone in the tech ecosystem, from Google and Amazon to NScale Global. Meanwhile, its operating cash flow in the first six months of 2026 totaled $3.9 billion. That could be fine as long as Anthropic\u2019s revenue continues to grow at a brisk pace.<\/p>\n

However, \u201cThose with long memories will remember that similar commitments and other financing arrangements turned out badly when the technology bubble popped at the end of the 1990s,\u201d wrote analyst Brett Arends in a Morningstar note on Oct. 27.<\/p>\n

The challenge for Anthropic is that the prime spots among frontier labs change so fast, noted Kratz, and holding on to a number one or two position requires spending a lot of money on innovation within a very short period of time.<\/p>\n

\u201cThat\u2019s what always worries me,\u201d Kratz said. \u201cWe were all hyped up on ChatGPT and OpenAI, and Claude wasn\u2019t really a big player yet. Everyone forgot about Gemini, and Google was trashed as a stock. Then Gemini started doing better, and then Claude took over OpenAI. Now OpenAI is catching up. You don\u2019t know who\u2019s going to be the most innovative. Is there going to be an ultimate winner that takes all? Or is it going to be a shared universe of services that\u2019s reliant on these Frontier Labs? But again, you have to spend a lot of money every three to four months to be on that frontier.\u201d<\/p>\n

Clients who are more risk-averse might be attracted by the idea of an ETF that holds exposure to Anthropic. There are several out there, including TEMA Photonics & Optical ETF (LAZR), which raised its exposure to Anthropic to 10.5% after the S-1 filing, and Corgi MANGOS ETF (MANGOS), with an allocation of approximately 9.0%. However, advisors say investors interested in Anthropic specifically, rather than the AI sector in general, might as well invest directly in Anthropic stock.<\/p>\n

\u201cIf you really just want that direct exposure, go buy the stock. That\u2019s fine\u2014buy it in a reasonable amount that makes sense and doesn\u2019t overexpose you,\u201d said Glenn.<\/p>\n","protected":false},"excerpt":{"rendered":"As artificial intelligence juggernaut Anthropic prepares to go public, financial advisors have similar advice for clients as they…\n","protected":false},"author":2,"featured_media":900940,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[28,147,530],"class_list":["post-900939","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/900939","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=900939"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/900939\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/900940"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=900939"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=900939"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=900939"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}