economy
SpaceX and Anthropic mega-IPOs could mark end of bull run, Bank of America suggests
Rule changes for faster inclusion and rejiggering the math on free float multiples "smack of late-stage machinations," the bank said.
TL;DR
- Bank of America suggests upcoming mega-IPOs from SpaceX and Anthropic might signal the end of the stock market's bull run.
- Accommodations for faster inclusion and adjusted free float multiples are seen as 'late-stage machinations'.
- A deluge of new shares from these IPOs could flood the market, potentially hurting prices.
- The trend of shrinking available public equity, driven by buybacks and longer private incubations, has supported recent bull markets.
- The influx of shares may pressure existing holdings, especially megacap tech stocks held by passive funds and cash-rich retirees.
- SpaceX is seeking a valuation over $2 trillion, and Anthropic could be valued over $900 billion.