r/investing
Could the upcoming mega-IPOs create temporary selling pressure on the broader market?
Questions if massive capital demand from upcoming mega-IPOs could drain liquidity and cause a temporary correction in the broader market.
- Mega-IPOs will require hundreds of billions in capital, forcing institutions to sell existing holdings to fund new positions.
- The S&P 500 is near record highs with finite investor capital, increasing the risk of a correction or sector rotation.
- AI-related valuations are driven by future expectations rather than current cash flows, making the market vulnerable.
Could the upcoming mega IPOs create temporary selling pressure on the broader market?
I’m curious what everyone’s thoughts are on the potential impact of the upcoming IPO wave, particularly SpaceX, OpenAI and Anthropic.
SpaceX has already completed what is being described as the largest IPO in history, while OpenAI and Anthropic have both moved toward public listings. Together, these companies could represent several trillion dollars in market capitalization and potentially require hundreds of billions of dollars in investor capital (The Guardian).
My question isn’t whether these companies are good investments. It’s whether the market can absorb all of this new supply without seeing meaningful reallocations from existing holdings.
A few things stand out:
• The S&P 500 is already near record highs.
• Investors don’t have unlimited capital. Large institutions often fund new positions by reducing existing ones.
• Several analysts have suggested that the combined capital demand from SpaceX, OpenAI and Anthropic could create disruptions in capital markets because they are competing for a finite pool of investment dollars (Reuters).
• Some estimates suggest the combined fundraising from these mega IPOs could approach $200 billion, which would be unprecedented in modern IPO markets (IG).
Historically, have we seen periods where major IPO waves caused broader market weakness, even if only temporarily?
I’m not predicting a crash. I’m wondering whether the combination of elevated valuations, record sized IPOs and finite investor capital could lead to a correction or sector rotation over the next 6-12 months.
Another factor worth considering is the AI boom itself. Markets are currently assigning enormous valuations to Ai related companies based largely on future expectations rather than present cash flows. History has shown that when investors become convinced a new technology will transform the world, capital can flow into the sector faster than fundamentals justify.
The internet ultimately changed the world, but that did not prevent the dot-com crash of 2000. If AI valuations continue to expand while expectations become increasingly difficult to meet, the market could face a period of repricing, particularly if earnings growth fails to keep pace with investor optimism.
Could we be seeing something similar today? Not saying a crash is inevitable, but the combination of record market valuations, massive IPOs and huge expectations around AI seems worth discussing.
Interested to hear both bullish and bearish arguments.
Spacex IPO / valuation
https://www.theguardian.com/science/2026/jun/12/spacex-stock-price-ipo-spcx
Anthropic IPO filing
https://www.reuters.com/business/ai-giant-anthropic-confidentially-files-us-ipo-2026-06-01/
Openai IPO filing
And also IPO market statistics
https://www.pwc.com/us/en/services/deals/library/us-ipo-watch.html
I lowkey wanna short Spacex next week. I’m looking into the granite shares SNK etf to do this
Shorting SpaceX next week feels like betting against hype instead of fundamentals. You might be right eventually, but timing can destroy a short position long before the thesis plays out.
If the market is expecting it, it is probably already priced in...
The pressure people worry about shows up at the wrong time. On IPO day you're fighting over a tiny float, the actual flood comes at lockup expiry three to six months later when insiders can finally sell. That's when it can leak into the rest of the market, not on the listing.
RMTG's strategy seems designed to create recurring engagement with physicians rather than one-time transactions. Educational programs, certifications, and ongoing product support can all contribute to longer-term relationships. That type of model can become more valuable as the network grows.
Any discussion that starts off with the S&P500 being near all time highs as a basis for an argument can be discarded immediately. That’s like saying the sky is blue - yes, it is often that way.
Possibly. But this is why the "conventional wisdom" in investing is broad diversification - money usually doesn't leave the market altogether, usually it just moves somewhere else within the market.
Moves from equities/bonds to other equities/bonds. If equities indexes are all taking a hit, the volume in the bonds market is positive and vice versa pretty much every time.
Probably at least a little bit. It’s being looked into now considering there’s the OpenAI and Anthropomorphic mega-IPOs coming up sooner rather than later. These 2 are pure AI plays .. vs SpaceX which basically combines 3 different companies, so maybe a bit of a difference.
I sure want to buy some of that Anthropomorphic
My spelling off this AM and didn’t even drink booze last night.
this is like asking is it going to rain last Monday.
Is it???
Yes and no. It's complicated.
I know but thats why i want to hear each person’s thought on this theory.