June 4, 2026
By Peter Bower
We will soon see three huge initial public offerings hit our stock market. In about two weeks, SpaceX will become public. Soon after, Anthropic and OpenAI will follow. SpaceX is projected to have a valuation of 1.75 trillion dollars. Initially, it will seek 75 billion dollars, but existing private shareholders will soon after be able to sell some of their holdings as well. Anthropic and OpenAI are also likely to come with trillion-dollar valuations. It is not yet known how much new money they seek to raise.
The impact on our stock market when such large amounts of money are needed to fund these offerings is not known, but the money must come from somewhere. It may be that some investors will sell some existing holdings to pay for their new investments. If this is the case, then the amounts are so large that our stock market could be negatively affected. The hope is that these companies may draw international interest, so the impact here may not be that great.
At the very least, we could be facing some dislocations in the U.S. stock market. Most of this will be in the tech sector since investors here will be the natural buyers of these new stocks. If you have been thinking of trimming some of your tech winners, it might be a good idea to do so soon. It never hurts to book some profits. In the meantime, stay steady my friends.
-The Lonely Bull
