Yahoo Finance UK questions SpaceX and Anthropic amid AI market selloff

SpaceX listing and market enthusiasm

Yahoo Finance UK says stock markets were building excitement around Anthropic’s expected flotation after the attention surrounding Space Exploration Technologies Corporation, or SpaceX. The article says some investors worried about an AI bubble even before the SpaceX IPO, but the offering gained momentum on its own.

SpaceX shares were listed at $135, finished their first trading day at $160, and later climbed to an all-time high of $225.64 on June 16. The article says that peak briefly put Elon Musk’s rocket company at close to $3 trillion in value.

Broader AI and tech selloff

The report says investors were preparing for further gains as Anthropic, the developer of the Claude chatbot, moved closer to its own market debut. But it says many may now be reconsidering after a broad selloff in AI and US technology shares.

According to Yahoo Finance UK, the S&P 500 fell 4.4% on Thursday, November 5, erasing trillions of dollars in market value. It says SpaceX shares dropped 9% that day and are down about 26% over the past month.

Anthropic’s valuation questions

Even before the market slide, the article says there were concerns about Anthropic. It reports that the company has committed almost $900 billion to computing and infrastructure while still posting large losses.

Yahoo Finance UK says Anthropic had been aiming for a November flotation valuation of about $1.5 trillion. Some potential investors now think $1 trillion is more realistic, while others question whether the IPO schedule can hold because of current market volatility.

Caution on valuation and Tesla talk

The article says the writer’s firm, The Twelfth Magpie, sometimes buys shares after bad news, but only when a company’s value can be measured reliably. It says that is harder when a business’s worth is uncertain.

Yahoo Finance UK adds that SpaceX is still valued at about $1.7 trillion despite recent declines. The writer says they have been discouraged by discussion of Musk possibly merging Tesla into SpaceX, and would not buy Tesla shares today. The article ends by saying investors should be cautious with SpaceX and, if its IPO happens, Anthropic as well.