Cramer Warns $148 Billion IPO Wave Could Threaten Bull Market
Updated
Updated · CNBC · Oct 26
Cramer Warns $148 Billion IPO Wave Could Threaten Bull Market
2 articles · Updated · CNBC · Oct 26
Summary
$148 billion has already been raised through IPOs this year, and Jim Cramer said another wave of giant offerings could drain demand from the broader stock market.
Anthropic's IPO filing on Monday sharpened that concern, with Cramer arguing that expected fundraising by AI leaders such as Anthropic and OpenAI could overwhelm investors' buying power.
Cramer said the risk is not weak AI businesses but excessive supply: too many new shares and debt deals could pull money away from the S&P 500 and other stocks.
He compared that dynamic to the dot-com era, when a flood of stock offerings eventually exhausted demand and helped trigger a market collapse, though he said today's companies are more established.
Cramer stopped short of calling a market top, but said both debt and equity markets appear to be running short of capital for companies' ambitions.