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Three major investors say Anthropic's IPO valuation may need to fall from about $1.5 trillion to closer to $1 trillion after a sharp Wall Street sell-off.
Three major investors planning to participate in Anthropic's IPO said the company's targeted valuation of about $1.5 trillion will likely need to come down, according to The Wall Street Journal as reported by FAZ. One of the investors said the valuation could end up closer to $1 trillion, Yahoo Finance reported.
The Nasdaq Composite lost $2.5 trillion in value on November 5, 2026, the biggest single-day dollar-value drop in its history, CNN reported. The Invesco QQQ Trust closed November 5 at $647.05, down 9.55% over one week, according to Yahoo Finance. More than 50 tech stocks in the S&P Composite 1500 fell 10% or more in the two-day rout after the November 3 midterm elections.
The sell-off leaves a tough market for an offering expected to raise up to $100 billion, the largest IPO on record, Yahoo Finance reported. Keith Lerner, chief investment officer of Truist Advisory Services, described a buyers' strike in tech.
Anthropic intends to list its Class A shares on the Nasdaq Global Select Market. The amended S-1 filed November 2 still leaves the price range and share count blank, and Goldman Sachs and Morgan Stanley lead 22 banks on the deal, Yahoo Finance reported. The amended filing leaves October revenue blank, and two people said investors want that figure to see whether growth recovered after a slowdown.
No valuation has been cut. Executives and advisors plan to meet in the coming days, and Anthropic declined to comment, Yahoo Finance reported. Another investor raised the possibility of a delay, and a smaller offering is a third option.
Anthropic's IPO is expected to serve as a barometer for the AI trade and the broader US economy, which has been buoyed by heavy investment in data centers and energy infrastructure, CNN reported. The company's prospectus warned about potential pitfalls including data-center development moratoriums. Mike O'Rourke, chief market strategist at JonesTrading, told CNN in an email: "My view is that Anthropic can still come to market and will come to market [but] will likely be forced to do so at a lower valuation."
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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