Cramer Says Anthropic's IPO Makes This Wall Street Bank a Buy
CNBC host Jim Cramer says he would buy Goldman Sachs shares after Anthropic filed its initial public offering (IPO) prospectus on Monday. Goldman Sachs is a lead underwriter, so the bank will earn fees from the deal.
Goldman Sachs could earn a lot of money as AI companies sell more shares. Alphabet sold $85 billion worth of stock in June, and a CNBC report says Meta Platforms plans to sell $95 billion worth of stock.
Who Earns the Fees on the Anthropic IPO?
In an IPO, banks called underwriters buy shares from a company that is going public and then sell them to investors. The banks earn fees from the money raised.
Goldman Sachs and Morgan Stanley are leading Anthropic's IPO. The same two banks also worked together on SpaceX's stock market listing. The report says Anthropic's shares will trade under the ticker ANT.
Cramer said he was pleased that no single customer provided more than 10% of Anthropic's revenue during the nine months ending September 30.
The filing also warns about cloud spending commitments. These are payments Anthropic must still make even if demand for AI slows down.
Markets reacted positively on Monday. The Nasdaq rose 1%, the S&P 500 gained just under 1%, and chip stocks led the market's recovery.
Lower oil prices and lower bond yields also helped technology stocks rise.
The Federal Reserve is expected to keep interest rates unchanged on Wednesday. However, another rate increase is expected in December, following September's first rate increase in three years.
Who Sells Stock Next After Meta and Alphabet?
Meta's reported plan to sell shares raises a question: Will other big companies that spend heavily on AI also sell stock to raise money?
Cramer pointed to Amazon and Microsoft as the most likely companies to sell shares because both are reporting their earnings this week. He said Alphabet is less likely to sell more shares because it already sold stock in June.
According to an Investing Club disclosure, Cramer's charitable trust owns shares in Meta, Amazon, Microsoft, Alphabet, and Boeing.
Separately, Dan Niles, the founder of Niles Investment Management, has urged investors to hold more cash as these companies get closer to reporting their earnings.
Anthropic's stock market listing would add to Alphabet's June share sale. These deals show how companies are using money raised by selling shares, rather than relying only on money their businesses earn, to pay for AI expansion. Whether investors can buy all these shares while the Federal Reserve tightens monetary policy may determine how long Monday's market gains last.