Jim Cramer warns this overlooked danger could threaten the market rally — SkimNews
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- Anthropic filed its IPO prospectus Monday, moving the AI company one step closer to a Wall Street debut investors have long awaited.
- The IPO market has raised $148 billion so far this year, the scale Cramer says could let an influx of new shares outstrip investor demand and derail the rally.
- OpenAI and Anthropic are the AI leaders investors have long awaited public offerings from; Cramer said their potentially massive fundraising needs could strain an already crowded market.
- Meta, alongside Alphabet, SpaceX and Oracle, is tapping capital markets as part of a fundraising wave that could pull investor dollars away from the S&P 500 and other stocks.
- Cramer said the dot-com parallel is the volume of capital raised, not the quality of the businesses: in 2000, abundant stock offerings exhausted buying power as supply outpaced demand.
- Cramer said he was not calling a top and that both debt and equity markets were “running out of money,” warning that companies could run short of financing before payoffs arrive.
- Cramer's Charitable Trust, the CNBC Investing Club portfolio, disclosed holdings in Meta and Alphabet; Cramer also named both companies among firms tapping capital markets.
Why it matters: With $148 billion already raised through IPOs this year, Cramer says new supply from Anthropic, OpenAI, Meta, Alphabet, SpaceX and Oracle could absorb money otherwise available to the S&P 500. His concern is a rally pressured by financing demand, even as he says many technology businesses have solid fundamentals.
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