Advisors Urge Caution — Anthropic, SpaceX, OpenAI IPOs Draw Buyers

Financial advisors across the U.S. are telling clients to be cautious after a wave of interest in potential IPOs from Anthropic, SpaceX and OpenAI. Anthropic filed confidentially with regulators this week, SpaceX has a planned listing and public expectations have grown that OpenAI will pursue a public offering later this year. Advisors recommend waiting or gaining exposure through diversified funds rather than buying single-stock IPO allocations.

Scott Bishop, cofounder of Presidio Wealth Partners in Houston, sent clients an email ahead of questions. He asked investors to clarify their motives: “Are you buying this as a true investment?” Bishop wrote that many buyers seek status or a story to tell rather than a long-term holding. He pointed out that IPO shares often jump on their first day and then fall, adding, “Who cares if you miss the first 10%?” He warned that chasing every hyped listing can add “portfolio noise” and complicate rebalancing and tax planning.

Tim Thomas, chief investment officer at Badgley Phelps Wealth Managers in Seattle, contrasted professional managers and retail buyers. He explained that wealth managers evaluate revenue, profit margins and growth prospects, while some retail investors place bets on a company’s vision, its technology or its leadership instead of traditional financial metrics.

Bryan Byrer of Millennial Financial Planning in Indianapolis recommended exchange-traded funds and index funds for clients who want exposure without concentrated risk. He noted that many major index providers are shortening the time new listings must wait before joining broad benchmarks, which will speed passive exposure to new public companies. Byrer added that companies that stay private longer often see valuations pushed higher by private capital, reducing the chance that retail buyers are truly “getting in on the ground floor.”

Regulatory and market changes are affecting supply and demand for IPOs. The Securities and Exchange Commission reports the number of publicly traded U.S. companies fell from roughly 8,000 in 1996 to about 3,700 in 2024. After a drop in listings in 2023, U.S. companies completed 227 IPOs last year, up from 140 the year before. SEC Chairman Paul Atkins has proposed rule changes intended to lower barriers for companies going public, including expanding exemptions from extensive reporting requirements.

Trevor Johnson, founder of Dream Weaver Financial Planning in Richmond, Illinois, advises clients who want to take speculative positions to use a very small portion of their portfolios and to add gradually if valuations improve. He recommends keeping the bulk of assets in diversified strategies designed for long-term growth, noting that investors might reserve capital to buy more only if prices become more attractive.

Advisors said the recent surge in interest ties to familiarity with the companies and to broader changes in how firms approach public listings. Their guidance to clients has focused on limiting concentration risk, preserving portfolio simplicity, and using diversified funds when seeking exposure to high-profile IPOs.