News & Updates
The latest news and updates from companies in the WLTH portfolio.
Dow Jones Top Company Headlines at 9 PM ET: Terms Revealed for SpaceX's Unconventional $75 Billion IPO | SoftBank ...
Terms Revealed for SpaceX's Unconventional $75 Billion IPO The company plans to sell shares at $135 apiece, eschewing the norm of setting a price range and incorporating investor feedback. ---- SoftBank CEO's Bad Bets Left Him in Despair. An AI Spree Has Him Back on Top. Masayoshi Son said that his Tokyo-based technology conglomerate would unleash at least $52 billion of investment in French data centers. ---- CrowdStrike Lifts Outlook After Swinging to First-Quarter Profit The cybersecurity company said it now expects annual recurring revenue of $6.53 billion to $6.56 billion for all of fiscal 2027, up from its previous target of $6.47 billion to $6.52 billion. ---- Quantinuum Prices IPO at $60 a Share. It's Slated to Go Public Thursday. Bullish investors see Quantinuum as the next superpower in quantum computing. Here's why. ---- Broadcom Shares Slide Despite Jump in Revenue on AI Chip Demand The semiconductor and software maker's shares slid after-hours as the report and guidance failed to live up to expectations among some investors. ---- Bill Ackman's Pershing Square Set to Make $600 Million on Universal Stake The hedge-fund firm first invested in the company in 2021 and has failed to clinch two proposed deals. ---- Citi Names New Head of Strategy as Jane Fraser Steers Bank Into 'Next Phase' Margo Pilic will be Citi's new head of strategy, M&A, and investor relations. ---- Real-Estate Giant Compass Under Antitrust Investigation in New York The state attorney general is probing a $1.6 billion acquisition of a rival brokerage firm. ---- PVH Cuts Outlook Citing Iran War Impact on Sales The owner of Tommy Hilfiger and Calvin Klein said it now expects full-year revenue to stay approximately flat, compared to previous guidance of a slight increase. ---- Hasbro's New AI Studio Looks to Bring Its Iconic Characters to Next-Generation Experiences Hasbro launched Sixth Wall, a new artificial-intelligence studio aiming to bring the toymaker's cast of characters into the new technological era. ---- Silicon Valley Stalwart Benchmark Breaks From Past, Embraces Mature Startups After a late-stage bet on Cerebras delivered big returns, Benchmark decided to raise its first-ever growth fund. ---- Sleep Number Prepares for Bankruptcy Filing to Address Debt Load The mattress maker is preparing to file for bankruptcy as it contends with a high debt burden and deteriorating financial performance, people familiar with the matter said. ---- Eli Lilly, Ascidian Sign $1.9 Billion Kidney-Disease Treatment Deal Eli Lilly signed a collaboration and licensing agreement worth up to $1.9 billion with Ascidian Therapeutics to research and develop kidney-disease treatments. ---- Medtronic Posts Higher Profit, Sales Medtronic said its profit and sales rose during its fiscal fourth quarter, reflecting steps the company has taken to improve business performance and drive growth. ---- Shoppers Are Spending More at Macy's as Turnaround Continues Macy's and its sister brands Bloomingdale's and Bluemercury have added higher-end products. Customers are snapping them up. ---- Zara Owner Shrugs Off Middle East Turmoil to Post Faster Sales Growth Sales at the Spanish fashion retailer-which houses Zara, Massimo Dutti and Bershka-rose 11.5% compared with the prior year. (END) Dow Jones Newswires June 03, 2026 21:15 ET (01:15 GMT) Copyright (c) 2026 Dow Jones & Company, Inc.
Anthropic Begins U.S. IPO Procedures, Timing Dependent on Market Conditions
Valued at $96.5B, Anthropic Aims to Outpace OpenAI in Public Market Debut Amid AI IPO Race Anthropic, the developer of the artificial intelligence (AI) model 'Claude,' has begun procedures for listing on the U.S. stock market. Anthropic announced on the 1st (local time) that it had confidentially submitted a draft registration statement to the U.S. Securities and Exchange Commission (SEC) for an initial public offering (IPO). The confidential filing allows the company to undergo SEC review without disclosing financial and business details publicly, and it can proceed with the listing depending on market conditions once the review is completed. Anthropic stated, "Once the SEC review is finalized, we will have the option to decide whether to proceed with the listing," adding, "The actual decision to go public will depend on market conditions and other factors." The number of shares to be offered and the offering price have not yet been determined. Anthropic recently secured $65 billion (approximately 100 trillion Korean won) in new investment last month, valuing the company at $96.5 billion (approximately 1,460 trillion Korean won). This surpasses the valuation of OpenAI, which was assessed at $85.2 billion (approximately 1,300 trillion Korean won) in March. Both companies, aiming to list within this year, are reportedly competing to secure an early position in the IPO market. Cerebras has already proceeded with its listing, and Elon Musk's SpaceX is also preparing for an IPO. This is interpreted as an attempt to preemptively secure investment funds by advancing the IPO timeline. Gil Luria, an analyst at investment bank D.A. Davison, told Reuters, "OpenAI and Anthropic are racing to go public before their capital runs out." He added, "Another reason Anthropic might aim to enter the public market before OpenAI is to set the financial reporting standards for cutting-edge AI models, thereby establishing criteria favorable to the company." OpenAI is also preparing related documents, such as an investment prospectus for submission to securities authorities, but it has not yet reached the formal filing stage. Meanwhile, according to Agence France-Presse (AFP), Anthropic has decided to provide access to its Claude Mythos model -- which possesses expert-level cybersecurity vulnerability detection capabilities -- to the European Union (EU). Anthropic recently announced plans to release the Mythos-class AI model to the public within weeks after completing security measures.
Cathie Wood's ARK sells AMD stock, buys Nvidia and Cerebras By Investing.com
Cathie Wood's ARK ETF published their daily trades for Monday, June 1st, 2026, showcasing notable moves in the technology sector. The largest transaction of the day was the purchase of 300,017 shares of NVIDIA Corp (NASDAQ:NVDA), valued at approximately $63.35 million. This acquisition was spread across several of ARK's ETFs, indicating a strong continued interest in the semiconductor giant. In another significant move, ARK sold a total of 110,207 shares of Advanced Micro Devices Inc (NASDAQ:AMD), with the transaction totaling around $56.88 million. This sale was distributed across multiple ARK ETFs, suggesting a strategic reallocation of funds within the tech sector. Continuing its investment in artificial intelligence, ARK added to its stake in Cerebras Systems Inc (CBRS), acquiring 62,669 shares valued at approximately $14.85 million. This follows a series of purchases in Cerebras over the past week, underscoring ARK's bullish stance on AI technology. Additionally, ARK divested 23,584 shares of Teradyne Inc (NASDAQ:TER), amounting to roughly $8.83 million. This sale marks a continuation of ARK's recent trend of reducing its position in Teradyne, following similar transactions in the preceding days. These trades reflect ARK's strategic adjustments in response to market dynamics, with a focus on strengthening positions in high-potential technology stocks while trimming holdings in others. Investors will be watching closely to see how these moves align with broader market trends and ARK's investment philosophy. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Why It Matters if OpenAI or Anthropic Wins the IPO Race | Mint
Summary There is much to gain for the company that moves faster. In the bitter rivalry between AI heavyweights OpenAI and Anthropic, it will mostly be who has the best technology that determines the ultimate victor. But which one of them gets to its public offering first matters a great deal, too. The window for initial public offerings is decidedly open, with a receptive market. Cerebras, an AI-chip company, rose 68% on its first day of trading last month. Only digital-design platform Figma's absurd 250% rise last year was bigger for a company valued at more than $10 billion at listing in the past five years, according to FactSet data. Elon Musk's SpaceX plans to follow up this summer in what may well be the largest IPO in history -- with a targeted valuation of $1.5 trillion. That will add more heat to the IPO cauldron. This is all the more reason for OpenAI and Anthropic to try to be the first big artificial-intelligence-model developer to go public. There are some clear advantages to being first out of the gate. Just as importantly, there are major disadvantages in being second. Academic research has shown that IPOs tend to come in industry clusters, and that companies listing later in a cycle don't tend to perform as well. That stands to reason, given that higher-quality companies with deeper moats tend to go public early, triggering a barrage of followers that might not be as strong. And even in a hot market, there isn't an infinite amount of money to go around. Investors may rotate out of other stocks to pile into SpaceX, then do more reshuffling to make bets on OpenAI and Anthropic later this year or next. The one that goes first is likely to gobble up more of the increasingly scarce capital. And both OpenAI and Anthropic are looking for sky-high valuations. Anthropic raised money recently at a valuation approaching $1 trillion. OpenAI was last valued in March at $852 billion. "There's only so much oxygen in the room," said Patrick Healy, founder of Issuer Network, which advises companies going public on leading U.S. exchanges. "SpaceX is going to consume an absolute ton of capital, and the guy that goes second is going to have a better position than the guy that goes third." For the better-run company -- in this case Anthropic, headed by Dario Amodei -- the cost of waiting may be especially large. A lukewarm market reception for an early OpenAI listing, which seems plausible given the steady drumbeat of dysfunction at the Sam Altman-led company, could force Anthropic to delay or scale back. That is just what happened in 2019, when ride-hailing rivals Lyft and Uber Technologies went public. Lyft, the smaller of the two, was first out of the gate with an IPO that didn't live up to its hype. A post-IPO decline in the stock directly affected Uber's listing two months later. Uber cut its target valuation, but its shares still fell after its debut, even in a market where other tech listings had been doing well. Going first isn't risk-free either, of course. The first to list risks that the market takes time to reflect its value, given that it is in a nascent industry without much of a track record. That has happened with tech listings in the past. Facebook's stock lost more than half its value in its first three months of trading in 2012 amid worry about whether it could adapt to a shift toward mobile-phone ads. It later went on a sustained upward run as the company showed its resilience and investors grew more comfortable with its business model. But other companies that had been itching to list -- notably Twitter -- ended up having to wait. Importantly though, even when the market's initial verdict is negative, Facebook and other early IPO movers got to reap the benefits of being public as they waited for their shares to recover. This includes whatever money is raised from the IPO, and keeping employees happy by allowing them to cash out. Those factors add urgency to OpenAI and Anthropic's IPOs, both of which could come this year. OpenAI has been working with bankers to file initial IPO paperwork and could do so shortly. Anthropic's timeline is less clear. Which gets there first -- and how markets react to it -- could help shape the future of the two companies and the next phase of the AI boom, either underlining the market's confidence in AI's transformative power or delivering a warning about its excesses. The stakes are high indeed.
Why It Matters if OpenAI or Anthropic Wins the IPO Race
In the bitter rivalry between AI heavyweights OpenAI and Anthropic, it will mostly be who has the best technology that determines the ultimate victor. But which one of them gets to its public offering first matters a great deal, too. The window for initial public offerings is decidedly open, with a receptive market. Cerebras, an AI-chip company, rose 68% on its first day of trading last month. Only digital-design platform Figma's absurd 250% rise last year was bigger for a company valued at more than $10 billion at listing in the past five years, according to FactSet data.
Jim Cramer has bold new take on Elon Musk's SpaceX IPO
There is always one IPO that defines a generation of investors. For people who started buying stocks in the 1990s, it was Microsoft (MSFT) and Amazon (AMZN). For millennials, it was Facebook and Tesla (TSLA). Each one arrived with the same problem, a valuation that looked impossible right up until it didn't. Elon Musk's SpaceX, which has spent nearly a decade as the most-anticipated private company in the world, is about to test the next generation of buyers. SpaceX filed its IPO prospectus on May 20 and is targeting a June 12 debut on the Nasdaq under the ticker SPCX, with a reported valuation range of $1.75 trillion to $2 trillion, according to Investing.com. That would make it the largest initial public offering in history by a wide margin, eclipsing Saudi Aramco's 2019 listing. Even Jim Cramer is not sure the math gets there. The longtime CNBC host gave a blunt assessment of where the price sits right now, and three reasons it might not matter. Photo by Michael M. Santiago on Getty Images What Cramer told Mad Money viewers about SpaceX Cramer addressed the SpaceX deal during the May 26 episode of CNBC's "Mad Money," and his opening line set the tone for the entire segment. "Purely from the numbers, it's very difficult to justify giving SpaceX a $2 trillion valuation," Cramer said, according to CNBC. More Wall Street: He had reason to be cautious. The numbers themselves are extraordinary in both directions. SpaceX generated $18.7 billion in revenue in 2025, up 33% year over year, but losses ballooned from a profit of $791 million in 2024 to a net loss of $4.94 billion last year, per the company's IPO prospectus. The bulk of that bleeding came from one place. Out of nearly $21 billion in capital spending last year, $12.7 billion went to building data centers for the xAI division Musk merged into SpaceX in February. When I ran the implied valuation against trailing revenue, the math came out to roughly 110 times sales, higher than Tesla's multiple at its 2010 IPO, per Investing.com. That is the number Cramer kept circling back to. In my view, it is also the number that has every Wall Street strategist trying to figure out whether SPCX is the next Nvidia (NVDA) or the next WeWork. Three catalysts that could rewrite the SpaceX bull case The Mad Money host did not stop at the caution. He laid out three near-term events that, in his view, could make the price tag look reasonable in hindsight. The first is Starship, the company's next-generation reusable rocket. SpaceX completed its 12th Starship test on May 22, and the prospectus says the system is expected to begin payload delivery in the second half of 2026, according to CNBC. "If SpaceX can really make that deadline, then it'll be a major boon for their slowing space division," Cramer said. The second is a new compute partnership with AI startup Anthropic. Per CNBC's reporting, Anthropic will pay SpaceX roughly $1.25 billion per month through 2029 to lease computing capacity from the company's Memphis data centers. Last year, the SpaceX AI division generated just $3.2 billion in revenue, but the Anthropic agreement alone could add roughly $15 billion per year almost immediately, Cramer said on CNBC. The third is the Cursor deal, which gives SpaceX the right to acquire the AI coding startup for $60 billion later this year or pay $10 billion for an ongoing partnership using its Colossus supercomputer, as reported by TechCrunch. Here is how Cramer's three catalysts stack up in dollar impact: * Starship payload delivery: expected to begin in the second half of 2026, per the SpaceX prospectus. * Anthropic compute deal: roughly $15 billion in incremental annual revenue, according to CNBC. * Cursor partnership: $10 billion payment floor with a $60 billion acquisition option, per TechCrunch. The reservation Cramer cannot get past Three catalysts are not the same as three guarantees, and Cramer was careful to underline why he still cannot fully sign off on the deal. The structural issue is the supply side of the market itself. The SpaceX IPO is not landing in isolation. OpenAI and Anthropic are both expected to follow with their own listings carrying multi-hundred-billion-dollar price tags, per The Motley Fool, and that creates a math problem for everyone already long tech. When several mega offerings hit the public market in the same window, eager investors have to sell existing holdings to participate. That selling pressure tends to weigh on the broader rally, not lift it. The recent Cerebras Systems debut is the warning shot. The AI chip company surged nearly 70% on its first day of trading, pulling demand away from comparable growth names, according to The Motley Fool. There is also the lock-up problem. Standard agreements prevent insiders from selling for 90 to 180 days after the IPO, which means a wave of insider supply hits the market right around Thanksgiving, exactly the moment retail enthusiasm tends to peak. That is the gap between Cramer's three catalysts and his one big reservation. The catalysts are about SpaceX's business. The reservation is about what the IPO does to every other stock in the reader's portfolio. What the SpaceX IPO means for your portfolio For most readers, the practical question is not whether to buy SpaceX at the open. It is what the deal does to the index funds and tech stocks they already own. If SpaceX prices at the high end of its range, it joins Apple (AAPL), Microsoft, and Nvidia as the only U.S. companies trading above $2 trillion, per BitMEX. Within weeks, Nasdaq fast-entry rules could push the stock into major benchmarks, which means every passive S&P 500 or Nasdaq 100 fund holder buys a piece of SpaceX whether they want one or not. There is also the Musk concentration question. The prospectus confirmed the SpaceX CEO will control 85.1% of the voting power after the listing, with an incentive package tied to establishing a one-million-person Mars colony, according to TradingKey. My analysis of the post-IPO ownership math says retail buyers are essentially renting a stake in Musk's long-term ambitions, while institutional investors get the steadier cash flow from Starlink and government launch contracts. That is not a deal-breaker. It is a setup worth pricing into the position. That is the trade Cramer is sizing up. Three catalysts that could make the price look cheap by Christmas, or one reservation that could make June 12 look like the top. Either way, the answer arrives in less than three weeks. And every other megacap on the screen has to make room for it. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc. This story was originally published May 28, 2026 at 1:03 AM.
Cerebras Surged 68% on Its First Day of Trading. Here's What That Tells Us About SpaceX's Upcoming Monster IPO
But these players are best suited to investors who don't mind risk. Artificial intelligence (AI) stocks have driven the stock market higher in recent years -- and investors have piled into companies that have been on the market for decades, from Nvidia to Microsoft. But in recent times, investors have gotten the opportunity to get in on younger companies involved in the space, from CoreWeave last year to Cerebras Systems (NASDAQ: CBRS) earlier this month. This is through these companies' initial public offerings. And next up may be SpaceX. The company owned by Elon Musk recently released its prospectus, and news reports indicate a roadshow will begin the week of June 8. This suggests an IPO could actually happen as soon as next month. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue " Investors clearly are eager to see how the SpaceX operation unfolds, particularly considering the IPO may be the biggest ever at almost $2 trillion. For some clues, we can look to Cerebras, which surged 68% in its first day of trading. Here's what that tells us about SpaceX's upcoming monster IPO. Image source: Getty Images. So, first, a quick note about Cerebras. The company is a player in the AI chip space, rivaling leaders Nvidia, Advanced Micro Devices, and other tech giants. Cerebras has designed a chip that's 58 times bigger than an Nvidia chip, and the company says this large size allows for incredible memory bandwidth and speed. In fact, in certain situations, it's delivered much faster results than GPU-based systems. All of this has translated into explosive revenue growth for Cerebras and even a $20 billion, multi-year contract with AI lab OpenAI. Though Cerebras still operates at a loss, this is pretty standard for a young company in the space as it invests to build out its technology and gain customers. Investors clearly liked the story as the stock opened at $350 on May 14 -- higher than the IPO price of $185 -- and went on to jump 68% in that first day of trading. Now, let's consider what that means for the SpaceX IPO. It's clear that investors are interested in new AI investing opportunities as well as opportunities to get involved in other exciting areas. SpaceX, with its businesses of rocket launches, AI, and satellite internet service, offers investors a cocktail of such technologies. Image source: Getty Images. In fact, in its prospectus, SpaceX says it's "identified the largest actionable total addressable market in human history," at $28.5 trillion. This includes $370 billion in space opportunities, $1.6 trillion in connectivity, and more than $26 trillion in AI. It's important to note, though, that profitability and the attainment of goals won't happen overnight -- and certain goals may not even be reached over time. SpaceX reminds investors of this: "Many of the innovative products and services described elsewhere in this prospectus may ultimately be unsuccessful and may require great expense, innovations not yet achieved or technologies not yet developed." Meanwhile, SpaceX's revenue has been climbing, 79% from 2023 to reach $18 billion last year, but its merger with xAI earlier this year added a significant weight to the financial picture: The AI business delivered a loss from operations of more than $6 billion last year, and capital expenditures of more than $12 billion surpassed those of the company's other businesses. So, the bottom line is that AI investments may stand in the way of profitability in the quarters to come. Though SpaceX is distinctly different from Cerebras, we can draw some parallels: Both are involved in the high-potential -- but high-investment -- business of AI and aren't yet profitable on an operational basis from this particular business. Though they involve risk, they also may offer growth investors the opportunity to get in on a new and exciting AI and general technology story. Though these stocks may not be the best choices for every investor, aggressive investors may be intrigued. These investors who don't mind some risk and are looking for a new AI or tech bet clearly turned to Cerebras during its IPO, leading it to a huge initial gain. And we may see the same thing happen as SpaceX launches its record-breaking market launch. Before you buy stock in Cerebras Systems, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Cerebras Systems wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $477,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,320,088!* Now, it's worth noting Stock Advisor's total average return is 986% -- a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
Cerebras Surged 68% on Its First Day of Trading. Here's What That Tells Us About SpaceX's Upcoming Monster IPO | The Motley Fool
Artificial intelligence (AI) stocks have driven the stock market higher in recent years -- and investors have piled into companies that have been on the market for decades, from Nvidia to Microsoft. But in recent times, investors have gotten the opportunity to get in on younger companies involved in the space, from CoreWeave last year to Cerebras Systems (CBRS 5.87%) earlier this month. This is through these companies' initial public offerings. And next up may be SpaceX. The company owned by Elon Musk recently released its prospectus, and news reports indicate a roadshow will begin the week of June 8. This suggests an IPO could actually happen as soon as next month. Investors clearly are eager to see how the SpaceX operation unfolds, particularly considering the IPO may be the biggest ever at almost $2 trillion. For some clues, we can look to Cerebras, which surged 68% in its first day of trading. Here's what that tells us about SpaceX's upcoming monster IPO. So, first, a quick note about Cerebras. The company is a player in the AI chip space, rivaling leaders Nvidia, Advanced Micro Devices, and other tech giants. Cerebras has designed a chip that's 58 times bigger than an Nvidia chip, and the company says this large size allows for incredible memory bandwidth and speed. In fact, in certain situations, it's delivered much faster results than GPU-based systems. All of this has translated into explosive revenue growth for Cerebras and even a $20 billion, multi-year contract with AI lab OpenAI. Though Cerebras still operates at a loss, this is pretty standard for a young company in the space as it invests to build out its technology and gain customers. Investors clearly liked the story as the stock opened at $350 on May 14 -- higher than the IPO price of $185 -- and went on to jump 68% in that first day of trading. Now, let's consider what that means for the SpaceX IPO. It's clear that investors are interested in new AI investing opportunities as well as opportunities to get involved in other exciting areas. SpaceX, with its businesses of rocket launches, AI, and satellite internet service, offers investors a cocktail of such technologies. In fact, in its prospectus, SpaceX says it's "identified the largest actionable total addressable market in human history," at $28.5 trillion. This includes $370 billion in space opportunities, $1.6 trillion in connectivity, and more than $26 trillion in AI. It's important to note, though, that profitability and the attainment of goals won't happen overnight -- and certain goals may not even be reached over time. SpaceX reminds investors of this: "Many of the innovative products and services described elsewhere in this prospectus may ultimately be unsuccessful and may require great expense, innovations not yet achieved or technologies not yet developed." Meanwhile, SpaceX's revenue has been climbing, 79% from 2023 to reach $18 billion last year, but its merger with xAI earlier this year added a significant weight to the financial picture: The AI business delivered a loss from operations of more than $6 billion last year, and capital expenditures of more than $12 billion surpassed those of the company's other businesses. So, the bottom line is that AI investments may stand in the way of profitability in the quarters to come. Though SpaceX is distinctly different from Cerebras, we can draw some parallels: Both are involved in the high-potential -- but high-investment -- business of AI and aren't yet profitable on an operational basis from this particular business. Though they involve risk, they also may offer growth investors the opportunity to get in on a new and exciting AI and general technology story. Though these stocks may not be the best choices for every investor, aggressive investors may be intrigued. These investors who don't mind some risk and are looking for a new AI or tech bet clearly turned to Cerebras during its IPO, leading it to a huge initial gain. And we may see the same thing happen as SpaceX launches its record-breaking market launch.
SpaceX debut draws a crowd, but few recent hot IPOs outpace the market
Wall Street is abuzz with next month's expected blockbuster debut of Elon Musk's rocket and satellite maker SpaceX, but few of the biggest IPOs in recent years have paid off for investors who bought in when the deals came to market. A Reuters analysis of the 50 IPOs with the highest valuations in the past five years shows that investors would have been better off buying an S&P 500 index fund about three-quarters of the time. The data underscores the difficulty of finding bargains among companies whose valuations have often surged long before the stock's debut. An investor who bought each of the IPOs tracked by Reuters would be up an average of 27 per cent through May 21. That compares to an average gain of 53 per cent in the S&P 500 over those same periods. The analysis assumes the buyer would be able to purchase shares at the IPO price - often not possible for a retail investor - or simply buy the broad-market S&P. Historical returns for investors buying during the frenzied first day of trading of a stock fare even worse, the analysis showed. "It's difficult to make money unless you're in the early stages of these things and buying these things before the IPO," said Dennis Dick, a proprietary trader at Triple D Trading. SpaceX's SPCX.O debut is expected to be followed by OpenAI and Anthropic, tapping into demand for AI-related companies that has sent the U.S. stock market to record highs. Set to trade under the ticker 'SPCX', SpaceX filed its prospectus on Wednesday, with a share sale potentially as early as June 11. Founder Elon Musk is making some shares available to retail investors through Robinhood, SoFi and other trading platforms that would allow them to get in at a lower price. The space exploration company is expected to target a $1.75 trillion valuation that would dwarf all previous Wall Street stock listings, but the Reuters analysis shows that such superlatives are no guarantee investors will make money. University of Florida professor Jay Ritter, who studies IPOs, said that while most public listings underperform the S&P 500 over the long run, companies with particularly high valuations as measured by price-to-sales tend to fare the worst. At a $1.75 trillion valuation, SpaceX's price-to-sales ratio would be nearly 100, compared to AI heavyweight Nvidia's NVDA.O price-to-sales ratio of 24. SpaceX lost nearly $5 billion last year. "Every one of these companies where investors are willing to pay a very high price-to-sales ratio has a compelling story for why the future potentially can be really bright," Ritter said. "But, you know, stuff could go wrong." Among the IPOs analyzed, AI-related chip designers Astera Labs ALAB.O and Arm Holdings ARM.O have been the biggest winners. Astera ALAB.O has surged over 700 per cent since its 2024 IPO, while Arm has soared about 400 per cent since its 2023 debut. Both of those performances outpace the S&P. Cerebras Systems CBRS.O, another AI chip designer, soared 52 per cent from its May 14 IPO price; it is down around 27 per cent from its first intraday high. Among the biggest disappointments in recent years, Chinese ride-hailing giant Didi Global DIDIY.PK was delisted from the New York Stock Exchange in 2022 following its heavily oversubscribed IPO the year before. Now trading over-the-counter, Didi Global shares are down about 74 per cent from their $14 IPO price. Electric car maker Rivian Automotive RIVN.O has slumped 82 per cent since its IPO in 2021 that briefly made it the second-most valuable U.S. automaker. The company continues to lose money for every car it builds, and is burning around $1 billion in cash every quarter. Shares in design software firm Figma FIG.N nearly quadrupled in their first trading session last July. But with investors worried that generative AI could commoditize Figma's technology, its stock is down 35 per cent from the $33 IPO price. Even the hottest offerings can lag. Chinese e-commerce company Alibaba BABA.N, which Reuters did not include in its analysis, holds the record for the largest U.S. IPO by valuation. Touted as the "Amazon of China," its shares have doubled since its 2014 Wall Street debut, during which time the S&P 500 has returned over 300 per cent.
SpaceX IPO frenzy masks weak track record of hot market debuts
Wall Street is abuzz with next month's expected blockbuster debut of Elon Musk's rocket and satellite maker SpaceX, but few of the biggest initial public offerings (IPOs) in recent years have paid off for investors who bought in when the deals came to market. A Reuters analysis of the 50 IPOs with the highest valuations in the past five years shows that investors would have been better off buying an S&P 500 index fund about three-quarters of the time. The data underscores the difficulty of finding bargains among companies whose valuations have often surged long before the stock's debut. An investor who bought each of the IPOs tracked by Reuters would be up an average of 27% through May 21. That compares to an average gain of 53% in the S&P 500 over those same periods. The analysis assumes the buyer would be able to purchase shares at the IPO price - often not possible for a retail investor - or simply buy the broad-market S&P. Historical returns for investors buying during the frenzied first day of trading of a stock fare even worse, the analysis showed. "It's difficult to make money unless you're in the early stages of these things and buying these things before the IPO," said Dennis Dick, a proprietary trader at Triple D Trading. SpaceX's debut is expected to be followed by OpenAI and Anthropic, tapping into demand for AI-related companies that has sent the U.S. stock market to record highs. Set to trade under the ticker 'SPCX,' SpaceX filed its prospectus on Wednesday, with a share sale potentially as early as June 11. Founder Musk is making some shares available to retail investors through Robinhood, SoFi and other trading platforms that would allow them to get in at a lower price. The space exploration company is expected to target a $1.75 trillion valuation that would dwarf all previous Wall Street stock listings, but the Reuters analysis shows that such superlatives are no guarantee investors will make money. University of Florida professor Jay Ritter, who studies IPOs, said that while most public listings underperform the S&P 500 over the long run, companies with particularly high valuations as measured by price-to-sales tend to fare the worst. At a $1.75 trillion valuation, SpaceX's price-to-sales ratio would be nearly 100, compared to AI heavyweight Nvidia's price-to-sales ratio of 24. SpaceX lost nearly $5 billion last year. "Every one of these companies where investors are willing to pay a very high price-to-sales ratio has a compelling story for why the future potentially can be really bright," Ritter said. "But, you know, stuff could go wrong." Among the IPOs analyzed, AI-related chip designers Astera Labs and Arm Holdings have been the biggest winners. Astera has surged over 700% since its 2024 IPO, while Arm has soared about 400% since its 2023 debut. Both of those performances outpace the S&P. Cerebras Systems, another AI chip designer, soared 52% from its May 14 IPO price; it is down around 27% from its first intraday high. Among the biggest disappointments in recent years, Chinese ride-hailing giant Didi Global was delisted from the New York Stock Exchange in 2022 following its heavily oversubscribed IPO the year before. Now trading over-the-counter, Didi Global shares are down about 74% from their $14 IPO price. Electric car maker Rivian Automotive has slumped 82% since its IPO in 2021, which briefly made it the second-most valuable U.S. automaker. The company continues to lose money for every car it builds, and is burning around $1 billion in cash every quarter. Shares in design software firm Figma nearly quadrupled in their first trading session last July. But with investors worried that generative AI could commoditize Figma's technology, its stock is down 35% from the $33 IPO price. Even the hottest offerings can lag. Chinese e-commerce company Alibaba, which Reuters did not include in its analysis, holds the record for the largest U.S. IPO by valuation. Touted as the "Amazon of China," its shares have doubled since its 2014 Wall Street debut, during which time the S&P 500 has returned over 300%.
SpaceX debut draws a crowd, but few recent hot IPOs outpace the market | New Straits Times
NEW YORK: Wall Street is abuzz with next month's expected blockbuster debut of Elon Musk's rocket and satellite maker SpaceX, but few of the biggest IPOs in recent years have paid off for investors who bought in when the deals came to market. A Reuters analysis of the 50 IPOs with the highest valuations in the past five years shows that investors would have been better off buying an S&P 500 index fund about three-quarters of the time. The data underscores the difficulty of finding bargains among companies whose valuations have often surged long before the stock's debut. An investor who bought each of the IPOs tracked by Reuters would be up an average of 27 per cent through May 21. That compares to an average gain of 53 per cent in the S&P 500 over those same periods. The analysis assumes the buyer would be able to purchase shares at the IPO price - often not possible for a retail investor - or simply buy the broad-market S&P. What To Read Next Historical returns for investors buying during the frenzied first day of trading of a stock fare even worse, the analysis showed. "It's difficult to make money unless you're in the early stages of these things and buying these things before the IPO," said Dennis Dick, a proprietary trader at Triple D Trading. BEWARE OF HIGH VALUATIONS SpaceX's debut is expected to be followed by OpenAI and Anthropic, tapping into demand for AI-related companies that has sent the US stock market to record highs. Set to trade under the ticker 'SPCX', SpaceX filed its prospectus on Wednesday, with a share sale potentially as early as June 11. Founder Elon Musk is making some shares available to retail investors through Robinhood, SoFi and other trading platforms that would allow them to get in at a lower price. The space exploration company is expected to target a US$1.75 trillion valuation that would dwarf all previous Wall Street stock listings, but the Reuters analysis shows that such superlatives are no guarantee investors will make money. University of Florida professor Jay Ritter, who studies IPOs, said that while most public listings underperform the S&P 500 over the long run, companies with particularly high valuations as measured by price-to-sales tend to fare the worst. At a US$1.75 trillion valuation, SpaceX's price-to-sales ratio would be nearly 100, compared to AI heavyweight Nvidia's price-to-sales ratio of 24. SpaceX lost nearly US$5 billion last year. "Every one of these companies where investors are willing to pay a very high price-to-sales ratio has a compelling story for why the future potentially can be really bright," Ritter said. "But, you know, stuff could go wrong." THE GOOD, THE BAD, AND THE UGLY Among the IPOs analysed, AI-related chip designers Astera Labs and Arm Holdings have been the biggest winners. Astera has surged over 700 per cent since its 2024 IPO, while Arm has soared about 400 per cent since its 2023 debut. Both of those performances outpace the S&P. Cerebras Systems, another AI chip designer, soared 52 per cent from its May 14 IPO price; it is down around 27 per cent from its first intraday high. Among the biggest disappointments in recent years, Chinese ride-hailing giant Didi Global was delisted from the New York Stock Exchange in 2022 following its heavily oversubscribed IPO the year before. Now trading over-the-counter, Didi Global shares are down about 74 per cent from their US$14 IPO price. Electric car maker Rivian Automotive has slumped 82 per cent since its IPO in 2021 that briefly made it the second-most valuable US automaker. The company continues to lose money for every car it builds, and is burning around US$1 billion in cash every quarter. Shares in design software firm Figma nearly quadrupled in their first trading session last July. But with investors worried that generative AI could commoditise Figma's technology, its stock is down 35 per cent from the US$33 IPO price. Even the hottest offerings can lag. Chinese e-commerce company Alibaba, which Reuters did not include in its analysis, holds the record for the largest US IPO by valuation. Touted as the "Amazon of China," its shares have doubled since its 2014 Wall Street debut, during which time the S&P 500 has returned over 300 per cent.
Analysis-SpaceX Debut Draws a Crowd, but Few Recent Hot IPOs Outpace the Market
May 26 (Reuters) - Wall Street is abuzz with next month's expected blockbuster debut of Elon Musk's rocket and satellite maker SpaceX, but few of the biggest IPOs in recent years have paid off for investors who bought in when the deals came to market. A Reuters analysis of the 50 IPOs with the highest valuations in the past five years shows that investors would have been better off buying an S&P 500 index fund about three-quarters of the time. The data underscores the difficulty of finding bargains among companies whose valuations have often surged long before the stock's debut. An investor who bought each of the IPOs tracked by Reuters would be up an average of 27% through May 21. That compares to an average gain of 53% in the S&P 500 over those same periods. The analysis assumes the buyer would be able to purchase shares at the IPO price - often not possible for a retail investor - or simply buy the broad-market S&P. Historical returns for investors buying during the frenzied first day of trading of a stock fare even worse, the analysis showed. "It's difficult to make money unless you're in the early stages of these things and buying these things before the IPO," said Dennis Dick, a proprietary trader at Triple D Trading. BEWARE OF HIGH VALUATIONS SpaceX's debut is expected to be followed by OpenAI and Anthropic, tapping into demand for AI-related companies that has sent the U.S. stock market to record highs. Set to trade under the ticker 'SPCX', SpaceX filed its prospectus on Wednesday, with a share sale potentially as early as June 11. Founder Elon Musk is making some shares available to retail investors through Robinhood, SoFi and other trading platforms that would allow them to get in at a lower price. The space exploration company is expected to target a $1.75 trillion valuation that would dwarf all previous Wall Street stock listings, but the Reuters analysis shows that such superlatives are no guarantee investors will make money. University of Florida professor Jay Ritter, who studies IPOs, said that while most public listings underperform the S&P 500 over the long run, companies with particularly high valuations as measured by price-to-sales tend to fare the worst. At a $1.75 trillion valuation, SpaceX's price-to-sales ratio would be nearly 100, compared to AI heavyweight Nvidia's price-to-sales ratio of 24. SpaceX lost nearly $5 billion last year. "Every one of these companies where investors are willing to pay a very high price-to-sales ratio has a compelling story for why the future potentially can be really bright," Ritter said. "But, you know, stuff could go wrong." THE GOOD, THE BAD, AND THE UGLY Among the IPOs analyzed, AI-related chip designers Astera Labs and Arm Holdings have been the biggest winners. Astera has surged over 700% since its 2024 IPO, while Arm has soared about 400% since its 2023 debut. Both of those performances outpace the S&P. Cerebras Systems, another AI chip designer, soared 52% from its May 14 IPO price; it is down around 27% from its first intraday high. Among the biggest disappointments in recent years, Chinese ride-hailing giant Didi Global was delisted from the New York Stock Exchange in 2022 following its heavily oversubscribed IPO the year before. Now trading over-the-counter, Didi Global shares are down about 74% from their $14 IPO price. Electric car maker Rivian Automotive has slumped 82% since its IPO in 2021 that briefly made it the second-most valuable U.S. automaker. The company continues to lose money for every car it builds, and is burning around $1 billion in cash every quarter. Shares in design software firm Figma nearly quadrupled in their first trading session last July. But with investors worried that generative AI could commoditize Figma's technology, its stock is down 35% from the $33 IPO price. Even the hottest offerings can lag. Chinese e-commerce company Alibaba, which Reuters did not include in its analysis, holds the record for the largest U.S. IPO by valuation. Touted as the "Amazon of China," its shares have doubled since its 2014 Wall Street debut, during which time the S&P 500 has returned over 300%. (Reporting by Noel Randewich, editing by Colin Barr and David Gaffen)
SpaceX debut draws a crowd, but few recent hot IPOs outpace the market
May 26 (Reuters) - Wall Street is abuzz with next month's expected blockbuster debut of Elon Musk's rocket and satellite maker SpaceX, but few of the biggest IPOs in recent years have paid off for investors who bought in when the deals came to market. A Reuters analysis of the 50 IPOs with the highest valuations in the past five years shows that investors would have been better off buying an S&P 500 index fund about three-quarters of the time. The data underscores the difficulty of finding bargains among companies whose valuations have often surged long before the stock's debut. An investor who bought each of the IPOs tracked by Reuters would be up an average of 27% through May 21. That compares to an average gain of 53% in the S&P 500 over those same periods. The analysis assumes the buyer would be able to purchase shares at the IPO price - often not possible for a retail investor - or simply buy the broad-market S&P. Historical returns for investors buying during the frenzied first day of trading of a stock fare even worse, the analysis showed. "It's difficult to make money unless you're in the early stages of these things and buying these things before the IPO," said Dennis Dick, a proprietary trader at Triple D Trading. BEWARE OF HIGH VALUATIONS SpaceX's (SPCX.O), opens new tab debut is expected to be followed by OpenAI and Anthropic, tapping into demand for AI-related companies that has sent the U.S. stock market to record highs. Set to trade under the ticker 'SPCX', SpaceX filed its prospectus on Wednesday, with a share sale potentially as early as June 11. Founder Elon Musk is making some shares available to retail investors through Robinhood, SoFi and other trading platforms that would allow them to get in at a lower price. The space exploration company is expected to target a $1.75 trillion valuation that would dwarf all previous Wall Street stock listings, but the Reuters analysis shows that such superlatives are no guarantee investors will make money. University of Florida professor Jay Ritter, who studies IPOs, said that while most public listings underperform the S&P 500 over the long run, companies with particularly high valuations as measured by price-to-sales tend to fare the worst. At a $1.75 trillion valuation, SpaceX's price-to-sales ratio would be nearly 100, compared to AI heavyweight Nvidia's (NVDA.O), opens new tab price-to-sales ratio of 24. SpaceX lost nearly $5 billion last year. "Every one of these companies where investors are willing to pay a very high price-to-sales ratio has a compelling story for why the future potentially can be really bright," Ritter said. "But, you know, stuff could go wrong." THE GOOD, THE BAD, AND THE UGLY Among the IPOs analyzed, AI-related chip designers Astera Labs (ALAB.O), opens new tab and Arm Holdings have been the biggest winners. Astera (ALAB.O), opens new tab has surged over 700% since its 2024 IPO, while Arm has soared about 400% since its 2023 debut. Both of those performances outpace the S&P. Cerebras Systems (CBRS.O), opens new tab, another AI chip designer, soared 52% from its May 14 IPO price; it is down around 27% from its first intraday high. Among the biggest disappointments in recent years, Chinese ride-hailing giant Didi Global was delisted from the New York Stock Exchange in 2022 following its heavily oversubscribed IPO the year before. Now trading over-the-counter, Didi Global shares are down about 74% from their $14 IPO price. Electric car maker Rivian Automotive (RIVN.O), opens new tab has slumped 82% since its IPO in 2021 that briefly made it the second-most valuable U.S. automaker. The company continues to lose money for every car it builds, and is burning around $1 billion in cash every quarter. Shares in design software firm Figma (FIG.N), opens new tab nearly quadrupled in their first trading session last July. But with investors worried that generative AI could commoditize Figma's technology, its stock is down 35% from the $33 IPO price. Even the hottest offerings can lag. Chinese e-commerce company Alibaba , which Reuters did not include in its analysis, holds the record for the largest U.S. IPO by valuation. Touted as the "Amazon of China," its shares have doubled since its 2014 Wall Street debut, during which time the S&P 500 has returned over 300%. Reporting by Noel Randewich, editing by Colin Barr and David Gaffen Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence * Capital Markets Noel Randewich Thomson Reuters San Francisco correspondent covering the stock market with a focus on Big Tech, semiconductors and other Silicon Valley companies
SpaceX and Recent IPOs: How Big Debuts Stack Up Against S&P 500
Are Recent High-Profile IPOs, Like SpaceX, Beating the S&P 500? Analyzing IPO Performance Versus the S&P 500 By Noel Randewich May 26 (Reuters) - Wall Street is abuzz with next month's expected blockbuster debut of Elon Musk's rocket and satellite maker SpaceX, but few of the biggest IPOs in recent years have paid off for investors who bought in when the deals came to market. A Reuters analysis of the 50 IPOs with the highest valuations in the past five years shows that investors would have been better off buying an S&P 500 index fund about three-quarters of the time. The data underscores the difficulty of finding bargains among companies whose valuations have often surged long before the stock's debut. An investor who bought each of the IPOs tracked by Reuters would be up an average of 27% through May 21. That compares to an average gain of 53% in the S&P 500 over those same periods. The analysis assumes the buyer would be able to purchase shares at the IPO price - often not possible for a retail investor - or simply buy the broad-market S&P. Historical returns for investors buying during the frenzied first day of trading of a stock fare even worse, the analysis showed. Challenges of Profiting from IPOs "It's difficult to make money unless you're in the early stages of these things and buying these things before the IPO," said Dennis Dick, a proprietary trader at Triple D Trading. Beware of High Valuations SpaceX's debut is expected to be followed by OpenAI and Anthropic, tapping into demand for AI-related companies that has sent the U.S. stock market to record highs. Set to trade under the ticker 'SPCX', SpaceX filed its prospectus on Wednesday, with a share sale potentially as early as June 11. Founder Elon Musk is making some shares available to retail investors through Robinhood, SoFi and other trading platforms that would allow them to get in at a lower price. The space exploration company is expected to target a $1.75 trillion valuation that would dwarf all previous Wall Street stock listings, but the Reuters analysis shows that such superlatives are no guarantee investors will make money. University of Florida professor Jay Ritter, who studies IPOs, said that while most public listings underperform the S&P 500 over the long run, companies with particularly high valuations as measured by price-to-sales tend to fare the worst. At a $1.75 trillion valuation, SpaceX's price-to-sales ratio would be nearly 100, compared to AI heavyweight Nvidia's price-to-sales ratio of 24. SpaceX lost nearly $5 billion last year. "Every one of these companies where investors are willing to pay a very high price-to-sales ratio has a compelling story for why the future potentially can be really bright," Ritter said. "But, you know, stuff could go wrong." The Good, The Bad, and The Ugly Biggest Winners Among Recent IPOs Among the IPOs analyzed, AI-related chip designers Astera Labs and Arm Holdings have been the biggest winners. Astera has surged over 700% since its 2024 IPO, while Arm has soared about 400% since its 2023 debut. Both of those performances outpace the S&P. Cerebras Systems, another AI chip designer, soared 52% from its May 14 IPO price; it is down around 27% from its first intraday high. Notable Disappointments and Underperformers Among the biggest disappointments in recent years, Chinese ride-hailing giant Didi Global was delisted from the New York Stock Exchange in 2022 following its heavily oversubscribed IPO the year before. Now trading over-the-counter, Didi Global shares are down about 74% from their $14 IPO price. Electric car maker Rivian Automotive has slumped 82% since its IPO in 2021 that briefly made it the second-most valuable U.S. automaker. The company continues to lose money for every car it builds, and is burning around $1 billion in cash every quarter. Shares in design software firm Figma nearly quadrupled in their first trading session last July. But with investors worried that generative AI could commoditize Figma's technology, its stock is down 35% from the $33 IPO price. Historical Perspective: Alibaba and the S&P 500 Even the hottest offerings can lag. Chinese e-commerce company Alibaba, which Reuters did not include in its analysis, holds the record for the largest U.S. IPO by valuation. Touted as the "Amazon of China," its shares have doubled since its 2014 Wall Street debut, during which time the S&P 500 has returned over 300%. (Reporting by Noel Randewich, editing by Colin Barr and David Gaffen)
SpaceX debut draws a crowd, but few recent hot IPOs outpace the market
May 26 (Reuters) - Wall Street is abuzz with next month's expected blockbuster debut of Elon Musk's rocket and satellite maker SpaceX, but few of the biggest IPOs in recent years have paid off for investors who bought in when the deals came to market. A Reuters analysis of the 50 IPOs with the highest valuations in the past five years shows that investors would have been better off buying an S&P 500 index fund about three-quarters of the time. The data underscores the difficulty of finding bargains among companies whose valuations have often surged long before the stock's debut. An investor who bought each of the IPOs tracked by Reuters would be up an average of 27% through May 21. That compares to an average gain of 53% in the S&P 500 over those same periods. The analysis assumes the buyer would be able to purchase shares at the IPO price - often not possible for a retail investor - or simply buy the broad-market S&P. Historical returns for investors buying during the frenzied first day of trading of a stock fare even worse, the analysis showed. "It's difficult to make money unless you're in the early stages of these things and buying these things before the IPO," said Dennis Dick, a proprietary trader at Triple D Trading. BEWARE OF HIGH VALUATIONS SpaceX's debut is expected to be followed by OpenAI and Anthropic, tapping into demand for AI-related companies that has sent the U.S. stock market to record highs. Set to trade under the ticker 'SPCX', SpaceX filed its prospectus on Wednesday, with a share sale potentially as early as June 11. Founder Elon Musk is making some shares available to retail investors through Robinhood, SoFi and other trading platforms that would allow them to get in at a lower price. The space exploration company is expected to target a $1.75 trillion valuation that would dwarf all previous Wall Street stock listings, but the Reuters analysis shows that such superlatives are no guarantee investors will make money. University of Florida professor Jay Ritter, who studies IPOs, said that while most public listings underperform the S&P 500 over the long run, companies with particularly high valuations as measured by price-to-sales tend to fare the worst. At a $1.75 trillion valuation, SpaceX's price-to-sales ratio would be nearly 100, compared to AI heavyweight Nvidia's price-to-sales ratio of 24. SpaceX lost nearly $5 billion last year. "Every one of these companies where investors are willing to pay a very high price-to-sales ratio has a compelling story for why the future potentially can be really bright," Ritter said. "But, you know, stuff could go wrong." THE GOOD, THE BAD, AND THE UGLY Among the IPOs analyzed, AI-related chip designers Astera Labs and Arm Holdings have been the biggest winners. Astera has surged over 700% since its 2024 IPO, while Arm has soared about 400% since its 2023 debut. Both of those performances outpace the S&P. Cerebras Systems, another AI chip designer, soared 52% from its May 14 IPO price; it is down around 27% from its first intraday high. Among the biggest disappointments in recent years, Chinese ride-hailing giant Didi Global was delisted from the New York Stock Exchange in 2022 following its heavily oversubscribed IPO the year before. Now trading over-the-counter, Didi Global shares are down about 74% from their $14 IPO price. Electric car maker Rivian Automotive has slumped 82% since its IPO in 2021 that briefly made it the second-most valuable U.S. automaker. The company continues to lose money for every car it builds, and is burning around $1 billion in cash every quarter. Shares in design software firm Figma nearly quadrupled in their first trading session last July. But with investors worried that generative AI could commoditize Figma's technology, its stock is down 35% from the $33 IPO price. Even the hottest offerings can lag. Chinese e-commerce company Alibaba, which Reuters did not include in its analysis, holds the record for the largest U.S. IPO by valuation. Touted as the "Amazon of China," its shares have doubled since its 2014 Wall Street debut, during which time the S&P 500 has returned over 300%. (Reporting by Noel Randewich, editing by Colin Barr and David Gaffen)
Gain Exposure to Innovative AI Chipmaker Cerebras With Less Risk Through These ETFs | The Motley Fool
In one of the most highly anticipated initial public offerings (IPOs) of 2026, Cerebras (CBRS 8.90%) made its debut on the public market on May 14 to considerable fanfare. Shares of the artificial intelligence (AI) chipmaker soared on their first day of trading. The company priced its stock at $185 for the IPO, and shares closed that session at $311.07. While this maker of massive wafer-scale chips has attracted incredible investor interest, many are wary of the share price volatility that's likely to occur in the weeks and months ahead. Fortunately, exchange-traded funds (ETFs) that hold Cerebras stock provide lower-risk ways to gain exposure to it. Investors can choose from two Ark Invest funds for exposure to AI specialist Cerebras. Targeting disruptive companies, the Ark Innovation ETF (ARKK 0.29%) is a closed-end interval fund with $6.5 billion in net assets and a 0.75% expense ratio. Cerebras accounts for just a small slice of the fund, with a 0.9% weighting as of Friday. The fund, however, is actively managed, and it would be no surprise if Wood adds to its Cerebras position in the near future. Interval funds can be lucrative because managers periodically offer to repurchase their shares from investors, though shareholders are not obligated to participate. For those seeking slightly greater Cerebras exposure coupled with exposure to other companies that are facilitating the migration of digital infrastructure to the cloud, the Ark Next Generation Internet ETF (ARKW 0.07%) is a great choice. Its Cerebras stake accounted for 1.1% of the fund's assets as of Friday. It's just one of many AI stocks held in the ETF, including Advanced Micro Devices and Nvidia, which have weightings of 8.9% and 1.1%, respectively. The Ark Next Generation Internet ETF has about $1.7 billion in net assets and a 0.76% expense ratio. Cerebras has only been publicly traded for a few days, so those investors who would like some exposure to it, but who don't want to pick up one of those Ark Invest ETFs, will not be frustrated for long. Cerebras stock will undoubtedly soon appear in the portfolios of numerous other funds that are focused on the AI and semiconductor markets, such as the VanEck Semiconductor ETF. And when it does, investors will be able to perform their due diligence to see if these ETFs are right for them.
Gain Exposure to Innovative AI Chipmaker Cerebras With Less Risk Through These ETFs
Shares of the AI chipmaker will likely pop up in many other AI-focused and semiconductor-centric ETFs before long. In one of the most highly anticipated initial public offerings (IPOs) of 2026, Cerebras (NASDAQ: CBRS) made its debut on the public market on May 14 to considerable fanfare. Shares of the artificial intelligence (AI) chipmaker soared on their first day of trading. The company priced its stock at $185 for the IPO, and shares closed that session at $311.07. While this maker of massive wafer-scale chips has attracted incredible investor interest, many are wary of the share price volatility that's likely to occur in the weeks and months ahead. Fortunately, exchange-traded funds (ETFs) that hold Cerebras stock provide lower-risk ways to gain exposure to it. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue " Image source: Getty Images. Investors can choose from two Ark Invest funds for exposure to AI specialist Cerebras. Targeting disruptive companies, the Ark Innovation ETF (NYSEMKT: ARKK) is a closed-end interval fund with $6.5 billion in net assets and a 0.75% expense ratio. Cerebras accounts for just a small slice of the fund, with a 0.9% weighting as of Friday. The fund, however, is actively managed, and it would be no surprise if Wood adds to its Cerebras position in the near future. Interval funds can be lucrative because managers periodically offer to repurchase their shares from investors, though shareholders are not obligated to participate. For those seeking slightly greater Cerebras exposure coupled with exposure to other companies that are facilitating the migration of digital infrastructure to the cloud, the Ark Next Generation Internet ETF (NYSEMKT: ARKW) is a great choice. Its Cerebras stake accounted for 1.1% of the fund's assets as of Friday. It's just one of many AI stocks held in the ETF, including Advanced Micro Devices and Nvidia, which have weightings of 8.9% and 1.1%, respectively. The Ark Next Generation Internet ETF has about $1.7 billion in net assets and a 0.76% expense ratio. Cerebras has only been publicly traded for a few days, so those investors who would like some exposure to it, but who don't want to pick up one of those Ark Invest ETFs, will not be frustrated for long. Cerebras stock will undoubtedly soon appear in the portfolios of numerous other funds that are focused on the AI and semiconductor markets, such as the VanEck Semiconductor ETF. And when it does, investors will be able to perform their due diligence to see if these ETFs are right for them. Before you buy stock in Cerebras Systems, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Cerebras Systems wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $477,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,320,088!* Now, it's worth noting Stock Advisor's total average return is 986% -- a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy.
Cerebras Systems Inc.(NasdaqGS: CBRS) added to S&P Global BMI Index
Cerebras Systems Inc. is an artificial intelligence (AI) infrastructure company that designs and manufactures an AI compute platform comprised of proprietary systems and software. The Company's products include inference Cloud, Training Cloud, CS-3 system, AI supercomputer, Wafer Scale Engine and model development. The Company's pioneering Wafer-Scale Engine (WSE), a chip encompassing an entire silicon wafer, was specifically designed to enable higher performance and speeds than GPUs for the computational demands of inference, Generative AI (GenAI), and other AI applications. It offers deployment services to assist customers with data preparation, model architecture design, training management, inference optimization, and, in select cases, ongoing system operations and management. It also offers a subscription service providing access to an ongoing stream of software updates and upgrades for purchasers of its hardware.
SpaceX's mega‑IPO is seen as not signalling an IPO‑market recovery
SpaceX's US$75 billion IPO is seen as posing a risk of draining liquidity from the US IPO market. NEW YORK - SpaceX's record-breaking initial public offering (IPO) is being viewed as Wall Street's biggest spectacle since the pandemic-era listing boom. As reported by Reuters on Thursday (21/05), the IPO is expected to attract strong retail investor interest through a combination of Mars exploration ambitions, artificial intelligence (AI) infrastructure, and space-based data centre projects. However, several analysts believe the SpaceX IPO should not be seen as a benchmark for a broader recovery in the IPO market because the company's business profile differs significantly from that of typical IPO candidates. "SpaceX is simply too large and has such an extraordinary valuation that it is not suitable as a normal benchmark for the IPO market," said IPOX analyst Lukas Muehlbauer. According to Reuters, citing Dealogic data, the SpaceX IPO is expected to raise more than IDR 1,215 trillion, with a valuation of around IDR 28,350 trillion, making it one of the largest stock market listings in US capital markets history. Analysts believe the scale of the transaction could absorb liquidity and investor attention away from other companies also planning to go public. A European capital markets banker said many institutional investors are expected to prioritise SpaceX because of the deal's size and the pressure on fund managers to participate. According to Muehlbauer, some companies have even accelerated their IPO plans in order to enter the market before SpaceX captures investor focus next month. This trend can already be seen in several IPOs that have entered the market in recent weeks, including AI chip company Cerebras and investment bank Lincoln International. Among retail investors, the SpaceX IPO is increasingly being viewed as a FOMO (fear of missing out) trade, supported by Elon Musk's popularity and the perceived scarcity of the company's shares. Unlike traditional IPOs, which usually rely on cash flow fundamentals and stable growth projections, SpaceX is being marketed more through narratives around its futuristic vision and industry dominance. The company's IPO filing shows that most of SpaceX's revenue last year came from its Starlink satellite internet business, with total revenue reaching IDR 302.45 trillion, while the company's AI unit was still loss-making. Reuters previously reported that Elon Musk is also considering allocating up to 30% of the IPO shares to retail investors, far above the average allocation in traditional IPOs. Cerity Partners partner Michael Ashley Schulman said retail investor enthusiasm for SpaceX is being driven by the strength of the market narrative. "SpaceX could become the biggest narrative event of a generation," he said. Although the SpaceX IPO is expected to be highly successful, analysts believe this alone will not be enough to revive the sluggish US IPO market following the 2021 listing boom. They argue that a broader IPO market recovery will still depend on geopolitical stability, stock market conditions, and easing investor concerns over AI disruption in legacy technology sectors. Annex Wealth Management Chief Economic Strategist Brian Jacobsen stressed that the SpaceX IPO is not representative of overall market conditions. "This is not a signal for the IPO market in general," he said. Georgetown University finance professor Reena Aggarwal added that SpaceX's unique business model does not guarantee other companies will achieve similar IPO results. "However, if this IPO fails for any reason, the impact could weigh on the IPO market as a whole," she said. (SF/LM)
SpaceX, OpenAI...: How Does an IPO Actually Work?
An IPO (Initial Public Offering) is the moment a private company goes public. Note that "public" has a specific meaning here: we are not talking about state-owned enterprises, but rather a company whose capital is opened to external investors. Prior to this, the company is owned by a closed circle: it's founders, employee shareholders, or venture capital funds, for instance. Afterwards, the shareholder base diversifies, even if the company retains controlling shareholders or is a majority owner. In any event, it marks the beginning of a more or less liquid market where ownership titles - shares - can be traded, with supply and demand interacting to establish a price. A Heavy and Well-Oiled Machine But before that, the company must get into battle mode for the IPO. It is a long, time-consuming and costly process. To keep things simple today, we will skip the internal restructuring required for listing, which is by no means a small feat. On the financial side, in the months leading up to the operation, the company selects one or more major investment banks, known as underwriters, tasked with organizing and placing the offering. Goldman Sachs, Morgan Stanley, JPMorgan, Bank of America and Citigroup are reportedly tipped to lead the SpaceX IPO. Their job involves analyzing the company from top to bottom, drafting the prospectus, and, crucially, gauging institutional investors to find the right offering price. This is known as the roadshow. Executives of the company-to-be-listed spend several weeks conducting back-to-back presentations in hotel ballrooms or bank boardrooms in New York, London, Paris and Singapore. They sell their "story" to fund managers who will then decide whether or not to place an order. Following this informal round, the banks build what is called the order book: who wants how many shares, and at what price. From this book, the IPO price emerges. Let's look at four key things to understand about these operations. The Money Does Not Always Go into the Company's Coffers The first misconception to clear up is that an IPO is not necessarily a fundraising event. A distinction must be made between primary shares (new) and secondary shares (existing). When a company issues new shares during its IPO, it is indeed raising capital; the money enters its coffers and can be used for investment, debt reduction or expansion. However, when existing shareholders sell their shares as part of the deal, the money does not go to the company: it goes into their pockets. That said, both mechanisms often coexist in the same IPO. The operation thus allows the company to raise funds for financing while enabling existing shareholders to monetize all or part of their holdings. In this case, the company's free float - the portion of capital freely tradable on the exchange - will consist of both the new shares and those sold by previous shareholders. The First Winners Are Often Already on Board This leads to another central question: who truly benefits from an IPO? The honest answer is: primarily those who were there before. The funds that financed SpaceX or OpenAI in their early days, having accepted high risk for years. Management generally provided the vision and the long hours. The IPO is their exit strategy, whether in full or part. Founders and employee shareholders see their stock options become liquid. Banks pocket commissions that can amount to colossal sums. And where does the individual investor fit in? Usually at the end of the chain. In major US IPOs, shares are first allocated to institutional investors who participated in the book-building process. Retail investors, most of whom buy on the secondary market as soon as trading opens, at a price determined by real-time supply and demand, which can be far removed from the IPO price - in either direction. While mechanisms exist to enable individuals to subscribe like institutions, they are typically limited to certain brokers and subject to discretionary allocation. For a European retail investor using a standard broker, the most frequent scenario remains: no access to the US IPO at the offering price, with purchase only possible after the first trade. What Does a "1,000 Billion Dollar IPO" Mean? Another common confusion is the blurring of lines between the amount of capital raised and the market capitalization. On the day of its debut, a company is valued by the market at the IPO price multiplied by the total number of shares outstanding. If OpenAI goes public at a valuation of 1,000 billion dollars, it means the market estimates the entire company is worth that sum, not that 1,000 billion dollars are changing hands. It is a collective and instantaneous valuation that can be raised or reduced, even within the first minutes of trading. OpenAI could also use the occasion to issue new shares and bring in fresh cash, relying on the appetite of new investors. Suppose management hopes to raise $50bn. In this case, you might also hear of a "50 billion dollar deal." This refers to the capital raise, not the overall valuation of the company. Both figures often circulate in parallel in the press, sometimes without much distinction. Hence the importance of knowing which one you are looking at. Is an IPO a Good Deal? The history of major tech IPOs teaches a certain humility. Facebook had a sluggish start before becoming one of the most profitable stocks of the decade. Uber and Lyft went public with great fanfare only to spend several years trading below their offering price. However, the AI fever has created a hyper-speculative environment for companies closely or distantly related to this ecosystem. Cerebras, which listed on the Nasdaq in mid-May, saw its share price jump from an IPO price of $185 to $367 during the first session due to a surge in demand. A few days later, it was trading at $290, meaning those who subscribed at $185 gained 57% in a few days, while those who bought at the peak are facing a 21% loss. CoreWeave, whose IPO dates back to March 2025, followed a similar trajectory (IPO price $40, peak at $187, around $101 as of May 20). In Europe, it must be admitted that the IPO track record is somewhat mixed, for reasons we will not detail here but which relate notably to the structure of corporate financing cycles. The largest recent operation, Verisure, failed to ignite, with a share price languishing well below its 2025 IPO level. Conversely, hyper-speculation in semiconductors is also present, as evidenced by the Silex IPO, where the share price tripled in a few days in May 2026. A New Dimension: SpaceX and OpenAI SpaceX and OpenAI are set to take US IPOs to a whole new level. The valuations of these companies will be incredibly high. There is talk of over 1,000 billion dollars for OpenAI - equivalent to the annual GDP of Switzerland. For SpaceX, it is even more staggering. Rumors suggest a valuation of 1,800 to 2,000 billion dollars for a capital raise of $80bn. Until now, the Saudi giant Saudi Aramco dominated the rankings with a valuation of 1,700 billion dollars in 2019, but a capital raise "limited" to $25.6bn. Unlike the Saudi firm, a star of the oil industry, the two Americans operate in a sector where prospects go "to infinity and beyond," at least on paper. And even if they are currently loss-making, they will generate unprecedented excitement. The spectacle is guaranteed and will likely spill over into the rest of the market. This is perhaps the moment to remember that a great story is not an investment thesis - bearing in mind that, these days, the market often prefers a good story over Excel spreadsheet ratios.
