Anthropic Investors Beware: IPOs Significantly Underperform the Market in Year 1

Anthropic's anticipated IPO, expected to raise up to $100 billion with a $1.5-2 trillion valuation, faces headwinds as historical data shows IPO stocks significantly underperform the market within their first year. While IPOs average 18% first-day gains (35.2% for tech stocks), they typically decline 3% after three months and 14% after six months. SpaceX's recent IPO exemplifies this pattern, peaking at $225 before falling to $149. The article cautions investors to avoid IPO stocks until they've traded publicly for at least six months.