IPO Frenzy Another Signpost of a Market Bubble Getting More Bubbly

What does it mean for the consumer backdrop when we stop drinking Jack Daniel's and donning Lululemon leggings?

Key Takeaways

• AI IPO Valuations Stretch the Math: Things have gotten so out of hand that SpaceX’s goal to achieve a $1.78 trillion valuation (!) in its IPO hinges on the assumption that its AI division revenues soar… wait for it… 100-fold over the next five years (tip of the hat to Goldman Sachs). Not to mention that the mega IPOs coming to the fore — Anthropic, SpaceX, and OpenAI — will command a combined valuation of $4 trillion (the frenzy is so extreme that Stripe and Databricks are mulling IPOs of their own).