Anthropic’s IPO Could Lift These AI Stocks
By Google News AI ·
Editor’s Note: For nearly five decades, my colleague Louis Navellier has picked stocks by identifying companies with extraordinary earnings growth and spotting when investors should act. That’s especially relevant with Anthropic’s highly anticipated IPO approaching. I invited Louis to share his thoughts on the offering. He’s also hosting a special free presentation Thursday, November 12, at 2 p.m.
Eastern, where he’ll reveal one stock to buy and another to avoid heading into 2027. You can reserve your spot here. But first, here’s Louis… Folks, I have to tell you, I’m looking forward to the Anthropic IPO. The company behind the Claude artificial intelligence platform has been growing at an incredible pace. Its revenue surged more than 1,200% in the first nine months of 2026. That’s phenomenal growth.
Anthropic’s arrival on Wall Street could give the entire AI sector another shot in the arm. Remember, I’ve been telling you for months that the AI boom isn’t slowing down. The order backlogs are enormous. The companies supplying chips, servers, storage, and cooling equipment to the hyperscalers are reporting spectacular earnings.
But there’s something I want to make very clear: I’m not recommending that you rush out and buy Anthropic stock when it begins trading. I’ve been investing for 47 years, and I’ve learned that there’s a big difference between an exciting company and a stock that deserves a place in your portfolio.
So, let me give you three reasons why I’m not chasing Anthropic’s IPO… and where investors should be putting their money instead. Reason No. 1: IPOs Can Be Awfully Expensive Anthropic got started in 2021. Just five years later, it’s preparing for what could be one of the largest initial public offerings in history. Its net revenue retention rate is approximately 900%.
In plain English, customers that were already using Anthropic’s services a year ago are now spending roughly nine times as much. But here’s the problem. Everybody knows Anthropic is growing rapidly. Wall Street knows it. Institutional investors know it. So, how much are they willing to pay? As I write this, Anthropic hasn’t announced its final offering price.
And even when it does, there’s no guarantee that ordinary investors will be able to buy shares at that price. If demand is overwhelming, the stock could open substantially higher. We’ve seen this movie before. When SpaceX Technologies Corp. (SPCX) went public in June, its shares surged roughly 40% in the first two trading days. Then the stock tumbled from those early highs.
Investors who chased the excitement paid the price. The same thing could happen with Anthropic. There’s also an unusual provision in Anthropic’s offering that could allow certain insiders to sell shares immediately, rather than waiting through the traditional lockup period. That creates another potential source of selling pressure. I’m not predicting that Anthropic will collapse after its IPO.
It could certainly go higher. But I don’t like guessing about what a stock will do when everybody is chasing it. I prefer to let the excitement settle down. Reason No. 2: I Want to See the Earnings I am obsessed with fundamentals. I want strong sales growth. I want even stronger earnings growth. I want positive earnings surprises. And I especially want to see analysts revising their earnings estimates higher.
Anthropic certainly has the sales growth. And its operating results are improving dramatically. During the first nine months of 2026, its…
Originally published by Google News AI
