Before Buying Anthropic Stock, Here's What History Says About Investing in IPOs
Key PointsAfter releasing its S-1 filing on Oct. 26, Anthropic could become a publicly traded company in less than a month.
Investors contemplating Anthropic's upcoming IPO should consider the historical performance of other technology-focused companies that have gone public. Meta Platforms, for instance, saw a remarkable 1,572% increase in stock price from May 2012 to May 2026, despite initially dropping 47% from its IPO price of $38 in May 2012. However, Meta's journey was not without its dips, with five out of ten top IPOs by capital raised experiencing negative returns in the first three months after going public.
Looking at the broader picture of these top 10 IPOs, five companies in this group had negative returns in their first year of public trading. Another example is SpaceX, which went public in June with a share price of $150, but it skyrocketed to $225.64 within hours before falling to $104.83 in August. It stabilized later, closing at $143.89 on Oct. 29, below its IPO price.
The data suggests that investing solely in the IPO's initial performance can be misleading. Instead, it is recommended to adopt a long-term perspective. For Anthropic, being a technology company places it in a favorable sector historically associated with higher returns. However, it's crucial to remember that the first day of trading can be volatile, and it may take time for the stock price to stabilize. Therefore, a thoughtful, long-term investment strategy may be the wisest approach for those considering Anthropic's IPO.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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