IPO Investing: Is Getting In Early Always an Advantage?

[snowpega]

Mate, it totally depends on which company's IPO you are going to invest in. This can help you to reach the conclusion easily. If you are investing in a company that doesn't have the long-term potential to stand in the market compared to its competitors, then it is sure there are chances you can lose your money in such a case. On the other hand, if you are investing in companies that have long-term future potential, then investing in such a company can be worth more.

And yes, this is correct; people are waiting for Anthropic's IPO so that they can invest and make money from it. And according to my observation, Anthropic is a good competitor of OpenAI, which I think can be a big competition when they launch their IPO. Anthropic has been building its reputation within its competition since day one, and they have brought many useful AI modules for their users. This is just my point of view, not any advice to follow. So, I highly advise DYOR!

[Hypnosis00]

This is not financial advice. Listing may be delayed or may not happen, and ANT may trade below its offer price from the first day.

I don't think the market is the same as it was before, when new projects created hype and early investors made huge profits.

I'd say investing too early is advantageous, but the risk is too high as well...

For me, I'd rather wait to launch for proper observation. Besides, the real investment advantage is not for the one who comes first but for those who invest at the right time. It is better to be more cautious than to regret.

Early investment risk
overvaluation - the company sets a more promising price than the market value
market hype - buying price is higher than the actual price
market volatility - price decline is possible after listing

[Webutxo]

I think this would be better in the altcoin discussion, IPOs are only good for big investors for you to be benefiting from an IPO you must be investing big or early and perhaps what is early here is the late or resale of the real early buyers. Perhaps IPOs take a longer time to get good profit but however you can do a little bit of research on how IPO works. I believe this is an advert for Anthropic, maybe not!

There are some touches of trading, I think trading discussion is more suitable here. OP need to understand that IPO are regulated and control, the company that is doing the IPO will be the ones to determine listing price which is usually value on what the company is worth. This is not like the way crypto coins are evaluated with hype when they don't even have any product, most  IPO companies like Anthropic have one of the best working AI model in the world, they will do well when the IPO comes.

Personally, I like Anthropic, they have build a beasts AI but I see the company as one that are trending now. A time will come when these AI noises will go away. That is the real time we will be able to know how the future of this companies will end. The question is what will Anthropic do different when the AI trend is no longer a thing again, don't just believe in this shill that will be forgotten. Spacex were everywhere before the IPO and now, it's on the low even though the company is still building.

[knowngunman]

No guarantee you can profit investing early but that attract attention from people to join in early. They see the success example from other people who joined in early and want to have the same experienced. The factor you said is enough to select the project as your investment.

It is about risk and money management to be early investors in the project so you should know the risk if the project fails. I see Anthropic get much attention from people but if you want to join, you should know how much money to invest.

This reminds me of the time presale was trending in crypto. Many people were not even doing the background checks on the project or the team behind the project, they just wanted to be early. People FOMO more than they care about calculating the risk. People made money that way those years but many lost their money too because it was later hijacked by scammers. They will create a coin and push it upfront for many people to see with a huge differences between the presale price and launching price so people rush in to buy the presale with the aim of cashing out big when they goes live. Some of them disappeared gradually by extending the launching date while some disappeared suddenly even before the launch date. We should not overlook the risk to focus on the profit involved.

[Nexta]

This is about personal risks factors because when investing in an IPO, just as have outlined above is a matter of consideration to know whether the investor will be able to Carter the damage that they may later incure while investigating in the initial time. From my understanding, most projects may not be that authentic in their price speculation because they may give a specific price listing but when it's get to that moment they could list below what they offers initially. That is why everything in trading risk and you must make sure to accept the risks associated with it before investing.

Okay I like this yeah ! At least you get to see where the market is willing to price the company instead of relying on the IPO valuation. But what if the stock opens high and never really gives you that dip? Would you let it go or still consider entering?

[Nexta]

I am not really a fan of buying IPO , because at times the company might hide their initial selling price which are mostly sold the top guys. For example the biggest refinery IPO in Africa (Dangotes refinery) closed in October, I didn't even care in buying it.  There were some leaked information coming out on X that Dangote sold his IPO shares at ₦424 to his shareholders and probably his top friends. But the price at which he is selling to the public is ₦525. So I just made up my mind that I won't rush anything IPO , instead I would wait for it to launch and dip before buying the shares. Didn't spacex drop to around $105 ? I am sure the patients investors would have bought at that price because it's currently trading at $142 . I don't see any advantage in buying IPO .

I understand the scepticism, especially when retail investors are often coming in much later than institutional investors. But I don't think that automatically makes every IPO a bad opportunity. It comes down to the company's valuation, the terms of access and whether the price makes sense. I'm discussing Anthropic as a case study because it's attracting attention right now, not trying to convince anyone to subscribe. This isn't an advert; I'm interested in the actual investment argument.

[Iamcrypticguy]

One interesting trend in crypto right now is the growing connection between traditional financial markets and blockchain technology, particularly through Real-World Asset (RWA) tokenization.

We're seeing more discussions around bringing securities and other traditional assets on-chain, while Bitcoin's recent weakness and ETF outflows show that market confidence is still uncertain.

This makes the upcoming Anthropic IPO an interesting case to watch.

There are several factors worth considering before investing in an IPO: valuation, demand, allocation and price discovery.

Early entry can be rewarding if demand pushes prices higher, but it also comes with risks, including uncertain allocation and the possibility of trading below the offer price.

Personally, I think understanding the underlying asset matters more than simply getting in early.

What factors do you usually consider before investing in an IPO?

This is not financial advice. Listing may be delayed or may not happen, and ANT may trade below its offer price from the first day.

Personally, I'd rather miss an entry than buy something just because everyone is rushing into it. There'll always be another opportunity somewhere.

[Olamidetechie]

I think the access part has changed a bit with some of these newer platforms. I came across Bitget IPO Prime while looking into the Anthropic offering. It doesn't remove the allocation uncertainty or market risk, obviously, but it does give retail users another route to explore IPO exposure.

[atookz]

What factors do you usually consider before investing in an IPO?

I think most of us are talking about IPOs in general, but in the updated S-1 (Nov 10) they’ve already stated an expected price of $70-78 per share and 825M shares offered, implying a valuation of ~$1.3-1.45T. The IPO is expected to price on Nov 18 and begin trading as ANT on Nov 19, but that may change.

Looking at the first 9 months, revenue is $33.2B, while total compute commitments are $895B. Perhaps it will work out if growth is sustained but I won't say it's guaranteed.

I read that retail is up to 20% and I hear demand is about 6x supply, so many will end up with little or nothing anyway. For me, it’s more about the price tag and how many shares will be available. Just my 2 cents.