Brace Your Portfolio for Mega-IPOs

Brace Your Portfolio for Mega-IPOs

2026 is the year of the mega-IPO. SpaceX, Anthropic, and OpenAI are working their way through the pipeline as anticipation builds for their blockbuster debuts. Elon Musk’s conglomerate is leading the shift from private to public markets. Demand is appearing to skyrocket to buy the companies the moment their stocks are publicly available. But is that the right move if you’re investing for the long term? Or are there better opportunities among stocks that are down on fears of AI competition, such as software as a service, or SaaS, stocks? These big private firms’ public arrivals will also affect index funds and 401(k)s.

So what should you make of all this? Paul Condra is the global head of private markets research for PitchBook, a Morningstar company. He and his colleagues are presenting this topic at the upcoming Morningstar Investment Conference in Chicago.

Why We Think the SpaceX IPO Is Overvalued

On this episode:

00:00:00 Welcome

00:01:46 Why SpaceX, Anthropic, and OpenAI Are Going Public Now

00:03:10 Why Morningstar Values SpaceX at Half the IPO Price

00:04:34 How Retail Investors Should Approach Buying SpaceX Stock

00:05:56Anthropic's IPO and Its Trillion-Dollar Valuation

00:07:12 OpenAI's Broken Economics and IPO Prospects

00:08:47 New Index Rules and What They Mean for Your 401(k)


Watch more from Morningstar:

The Portfolio That Has Been Beating the Classic 60/40, and Why It Matters for You

https://www.morningstar.com/portfolios/portfolio-that-has-been-beating-classic-6040-why-it-matters-you

The Best Opportunities for Fund Investors Today

https://www.morningstar.com/funds/best-opportunities-fund-investors-today

Will Vacation Inflation Affect Your Summer Travel? Here’s What to Know

https://www.morningstar.com/stocks/will-vacation-inflation-affect-your-summer-travel-heres-what-know

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