Anthropic (ANT) — the artificial intelligence (AI) company behind Claude — filed to go public on Oct. 26. The company plans to list on the Nasdaq under the ticker “ANT.” While there's no official confirmation yet, as per some reports, Anthropic is expected to list at a massive valuation of $1.5 trillion to $2 trillion.
Just a few days after the announcement, on Oct. 30, AI stocks sold off sharply. This included Amazon (AMZN) and Alphabet (AMZN), two of Anthropic's biggest backers. Jim Cramer called it "a stock-pocalypse." On Nov. 1, Cramer also said that he believes the bears are determined to derail the AI company's initial public offering (IPO). Let's take a closer look.
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Does Cramer's Claim Hold Up?
I think the wide selloff did have some clear causes of its own. Intel's (INTC) weak outlook made it crash 29% in just one day, and this had a direct impact on related companies like Advanced Micro Devices (AMD) and Arm (ARM) as well. After Amazon posted its results, AMZN stock fell as worries about its heavy AI spending increased. The stock did recover most of its decline soon after, though. Alphabet also had its worst month on record.
In my opinion, the selling doesn't look like it was done to target one IPO. Still, while I think Cramer saying this was the “goal of the bears” is a stretch, the selloff and the IPO announcement could have a link. A huge IPO needs buyers, and investors often end up selling other stocks to raise cash for it. Cramer also warned about this phenomenon, saying the wave of big IPOs could drain buying power from the market. That is where I think his point holds more weight.
The Valuation Debate
Anthropic's business is booming. In the first half of 2026, the company made $16.3 billion in revenue, more than 13 times the $1.2 billion it made in the same period last year. Net loss during this period was $80.7 billion. This looks scary on paper, but $72.4 billion of that figure was an accounting charge rather than cash spent. Its actual operating loss was only about $693 million. Anthropic's latest filing shows Q3 revenue of $17 billion on its own, more than the entire first half, with an operating loss of $567 million.
The worry a few people have is that Anthropic's growth is slowing down. Revenue jumped 48% from Q2 to Q3, which was solid but still far less than the 143% growth from Q1 to Q2. This is part of why some investors believe the valuation will be around $1.5 trillion instead of $2 trillion. However, I think it is pretty normal for a company's revenue growth rate to shrink as its revenue gets bigger.
Even among experts, the valuation remains debated. Aswath Damodaran, the NYU "Dean of Valuation," estimates that Anthropic should be valued at $1.45 trillion. Analyst Dan Ives believes there would be strong demand near a $1.5 trillion valuation. On the other hand, New Constructs called the Anthropic IPO "the most ridiculous IPO of 2026" and believes that it should be valued at only about $150 billion.
Another worry comes from Financial Times. The outlet recently reported that Anthropic could receive a junk credit rating after its IPO, meaning ratings agencies would see it as a fairly risky borrower.
What the Anthropic IPO Means for Amazon and Alphabet
As of June 30, Amazon's Anthropic holdings, including preferred stock and convertible notes, were valued at $190.4 billion. After Anthropic's private valuation jumped to $965 billion in May 2026, Amazon reported $53.4 billion in other income in Q2, mostly tied to Anthropic.
Alphabet's exact stake hasn't been disclosed, but analyst estimates put it closer to 7%. At the last private valuation, that comes to about $67.5 billion. If the valuation ends up being $2 trillion at the IPO, Alphabet's estimated stake would jump to about $140 billion. The S-1 also allows Google to buy up to $10 billion more of Anthropic shares at the IPO price.
So, a strong IPO would add billions in gains for both companies, while a weak one could reverse some of what they've already booked. This is why there's so much riding on the Anthropic IPO for both companies.
On the date of publication, Jabran Kundi did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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