SpaceX, Anthropic IPOs highlight growing clout of retail investors, say Goldman Sachs, Morgan Stanley CEOs
The offerings’ reception reflects the appetite for quality companies, notes Goldman Sachs’ David Solomon
Mega initial public offerings, including those of SpaceX and Anthropic, are attracting significant interest from retail investors, according to the CEOs of Goldman Sachs and Morgan Stanley. Goldman Sachs chairman and CEO David Solomon noted that there has been a surge in mega-IPO companies, with capital demand exceeding the 10-year average.
Morgan Stanley's Ted Pick highlighted the growing sophistication of retail investors, who are investing for the long term and are more knowledgeable about the benefits of holding these companies over time. Retail investors make up a significant portion of long-term ownership in these mega-IPO companies, helping to stabilize and dampen volatility.
Solomon also emphasized the potential for AI to drive significant returns for the economy, projecting capital expenditure of US$10 trillion to US$15 trillion over the next five years. However, he cautioned that past market cycles could serve as reminders of the risks associated with excessive investor exuberance.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
