- Investor Michael Burry saw parallels between the IPOs of SpaceX, Anthropic, and OpenAI and the dot-com bubble of the 2000s.
- The difference lies in the higher value of modern companies and higher risks for investors.
Renowned shortstop Michael Berry is not excludes, that, adjusted for inflation, potential IPOs from SpaceX, Anthropic, and OpenAI could raise as much or more capital than the roughly 300 IPOs of tech, media, telecom, and internet companies in 2000.
He included an image with his post showing the “National IPO Market Snapshot” from the dot-com era, which highlights the intensity of the 2000 IPO boom and the subsequent sudden deterioration as investor appetite for tech stocks collapsed.
Apparently, Berry is confident that the current enthusiasm around AI and space technology could enter the same psychological zone that defined the late 1990s: massive capital raising, soaring private valuations, and investment from retail investors. And all this before the metrics are fully verified.
Subsequently, many companies that rushed to go public during the boom encountered difficulties, went bankrupt, or disappeared. This is precisely the parallel Berry draws.
Bloomberg data
What’s different about the current situation is that SpaceX, OpenAI, and Anthropic are not small, speculative startups, but companies that are defining categories such as commercial space, artificial intelligence, automation, and cloud computing.
Of course, the dot-com bubble didn’t affect every company, and some of them later became incredibly valuable, but many investors still lost money by believing in inflated expectations.
Nowadays, demand can also create a strong foundation for IPOs, but it can also create conditions for excess. According to Berry, the coming wave of mega-IPOs may not be a triumph of innovation, but rather a warning sign.
Before SpaceX IPO There’s about a month left, so from now on the situation will gradually begin to clear up.
Personally, as a journalist, Happy Coin News I share a similar opinion and believe that the excitement around new technologies will gradually die down over the next 3-5 years, and that a small number of organizations with truly strong innovative products will continue their work.
Risk Warning:
The information on this website is for informational and educational purposes only and does not constitute investment advice or financial recommendations. Cryptocurrencies and digital assets carry a high level of risk, including possible loss of capital. The editors are not responsible for decisions made based on the published materials. It is recommended that you conduct your own research (DYOR) before making investment decisions. Read the editorial policy. https://happycoin.club/about/