alt Hacker NewsMy main thing is - why would I buy their stock at the rumored valuation? Regardless of anything else that valuation is basically saying all their growth has been captured, unless they literally take over the world.
If you could go back in time and buy $1000 worth of Amazon when they IPO'd, it would be worth 3.3 million today. Because Amazon's stock value has grown on average 30% year over year for 30 years. Amazon's valuation when they went public was around 400 million.
How much can Anthropic reasonably grow from a 1.5 or 2 trillion dollar valuation? If we want them to grow even half as much as Amazon they'd have to be worth 5.9 quadrillion dollars by 2056. That's 5,900,000,000,000,000, a 16 digit number.
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In many ways investing in a very late IPO like SpaceX, Anthropic, or OpenAI is the worst of all worlds for the public investor.
On the one hand you'll never see a 100x return – that's been captured by private equity. But there's still a lot of long-term risk because these companies haven't proven they can deliver free cash flow to justify their valuations. Investing in SpaceX or Anthropic at $1T valuation is very different from investing in Apple or Nvidia.
The guy from SemiAnalysis said this too. If he buys Anthropic now at $2T and they go to zero, he's fucked, but if they go to $20T, we're all fucked.
> Amazon's valuation when they went public was around 400 million.
This isn't just an Anthropic issue, but more and more of the upside of companies have been captured in private markets prior to IPO for around the last decade. This is a consequence of so much money floating around, that IPOing is now the last stop on the train instead of one of the early/middle stops where a company actually needs to raise money.
This is more of a critique of a broken IPO market and the rise of availability of immense private capital. The public are denied access until the private markets are essentially tapped out.
IPO returns have been horrible for years. Past 5 year returns on S&P is ~80%, on NASDAQ 100 about 100% while IPO's have returned 10-15%.
> My main thing is - why would I buy their stock at the rumored valuation? Regardless of anything else that valuation is basically saying all their growth has been captured, unless they literally take over the world.
I didn't buy Amazon in the early '00s for this reason, and I won't buy Anthropic for this reason. Maybe I lose out, but I like to invest in stocks that look like good investments.
The problem with your reasoning is that something can be a good investment and not have the growth trajectory of Amazon. You can't pick the (more or less) maximum growth example and then say anything less is a bad investment. Anthropic doesnt need a 3000x return. They need to beat alternative uses of that money.
Your argument that it's overvalued isn't really tethered to anything. It's about as whimsicle as the people saying "well it's worth any price because AI is the future." Of course the price matters.
Here is some way to start thinking about it. A lot of mature companies trade at 20-25x times earnings. So $2T needs roughly $80–100B a year in profit eventually. At 25–30% net margin, it means about $300–400B in revenue (something like Microsoft). Or 20%/450B (Google) or 10%/800B (Amazon). Anthropic is still growing rapidly. And intuitively i don't think it's crazy to suggest they may look like one of the current big tech companies in the future.
>Regardless of anything else that valuation is basically saying all their growth has been captured, unless they literally take over
Absolutely not. Not even close to true. They dont even need to become the biggest company.
It’s a great question. It’s a rational line of thought. However, the market can stay irrational longer than you can stay solvent (if you were planning to go the opposite way).
Jack Clark (says that he) thinks that US GDP could grow by 50% by 2030 [0]
> Speaking at the 2026 Per Jacobsson Foundation Lecture during the IMF and World Bank annual meetings in Bangkok, Clark pointed to an extreme economic scenario modeled by Anthropic economists in which U.S. GDP could reach roughly $44 trillion by 2030, which is a nearly 50% increase from the current $30.77 trillion in just four years.
If the total value of US public companies also increased by 50% in that time, they'd collectively be worth about $112T. I guess Anthropic could be worth 10% of that in some scenario? And if we're in that world probably capital has increased a lot faster than labor so US public companies could be worth like 150T or something. Who knows. Nothing about valuations makes sense any more, so what's one more drop in the nonsense bucket.
[0] https://finance.yahoo.com/technology/ai/articles/anthropic-c...
This comment is just repeating a point made in Casual Finance's youtube video here: https://www.youtube.com/watch?v=roe3SgezmmU (timestamp 1:06)
People said similar things about facebook, and similar things about Nvidia stock recently (not ipo, but similar "why buy at this price"). Global GDP is over $100 trillion every year, there is a lot of business to do in the world, AI might be able to do a lot, it might be very profitable.
The number might be too high, but doesn't take more than a little imagination and some basic facts about the world to see how it could be worth 20 trillion in 10 years.
Don’t worry AI will tell us how to time travel, you can get your AMZN no problem or just a sports almanac from the future… infinite growth if you can travel into new dimensions :-/
As explained very well here https://m.youtube.com/watch?v=roe3SgezmmU&ra=m
To be fair, if you told Amazon investors in 1997 that their investment would go up 3,300x and Amazon would be worth $2.7 trillion in 2026, they’d have called you insane too. There isn’t a mathematical reason Anthropic can’t be worth that in 2056. I don’t think it will be, but not because of the compounding returns.
Einstein once said “compound interest is the eighth wonder of the world.” It’s very hard for humans to comprehend compounding returns.
I'm not suggesting you invest necessarily, but I'll give you the counterpoint.
Amazon would have gotten you rich, but it wasn't there when it IPOed. Anthropic is growing fast, at 4.7B, 11.6B and 16.7B last 3 quarters.
I think people want to believe that AI will be both productive and replace traditional search / ad revenue, which would give it a solid standing for valuation...
Here's a random anecdote for you:
Back in 2018, I sold a bunch of Nvidia stock. I had bought it in 2014, when deep learning was taking off, and it had gone up 10x since then. It was obvious that all the growth had been captured and it was time to get out. I remember feeling pretty smug about timing things just right.
Nvidia's market cap in 2018 was around $150B, and the largest company in the world was Apple at ~$800B. And part of my thinking at the time was, well... Nvidia is already worth about a fifth of the most valuable company in the world. How much can they reasonably grow from this valuation?
In hindsight, I can tell you: the answer is 35x (as of now, and who knows in the future). The idea that any company, much less Nvidia, would be worth $5T within a decade was laughable back then, and yet, here we are.
We don't buy public companies expecting AMZN level return from every single one of them.
I think the strategy is to IPO with a massive valuation and a small amount of float and then hold the valuation long enough to get into a cap weighted index like the S&P 500. At that point investors can harvest the monthly inflows of global investors who blindly dump money into passive index funds.
The thesis here is that in the past short sellers would short sell overvalued stocks in the index and buy undervalued stocks and drive price discovery and that those mechanisms are broken due to:
- Passive index funds dominate the market and swamp the ability of active traders to drive price discovery
- Massive returns of these funds over the last 15 years have made beating the benchmarks difficult and leading investors away from actively managed portfolios
- The rise of meme stocks, options trading and crypto bro traders driving out hedge funds and institutional short sellers - Stock tickers and crypto being seen as disconnecting from the US Treasury’s as an anchor for risk free returns to a “Snow Crash” model where assets represent a stake in a new world order.
the market cap of the world's most valuable public corp has grown at ~24% annually over the past decade (Apple @ 2016 vs Nvidia @ 2026)
in 2016, who would've thought this kind of growth...
The reason to buy any individual stock is you believe it will outperform the market as a whole over N years. If you think all the growth has been captured already and Anthropic will stay below opening price + market growth forever then of course you shouldn’t buy it. But plenty of people don’t think that.
I feel like you're treating the stock market like a horse race. Amazon outpaced the stock market by 3x over the last 30 years, and it's just incredibly unrealistic to make that the standard for buying a stock. Anthropic shouldn't be expected to increase any more or less than the rest of the market and that's if you don't believe there's a bubble. (A bubble is by definition when prices don't reflect actual value)
Buying for dividends?
"How much can Anthropic reasonably grow from a 1.5 or 2 trillion dollar valuation"
Bahhaa. I love it when a normal guy just exposes the issue. Yes. 10 trillion is getting close to us GDP lol.
Love one of the last lines in the introduction. "bring forth an age of miracles". Lacking in optimism and ambition they certainly are not.
I mean, I understand you’re using your brain to do this analysis. But somehow, the valuation will grow and investors will make money.
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It's AGI dude, your calculator can't even reach the valuation multiplier needed to compute your gains. /s
Valuations are a function of growth rate.
Anthropic growth rate is truly unprecedented at it's scale.
They are 10x revenue YoY.
2024: ~$0.4B
2025: ~$4.0B
2026: ~$100.0B
Why would you expect this to be a magical making money stock?
Unless you have special insight, you should assume all stocks are equally good buys.
There's not going to be an IPO at a price where everyone agree that it'll see a 30% growth over 30 years. Obviously that'd be priced in.
IPOs used to be necessary for growth but that hasn't been the case for many years. Private markets are now so large that the only purpose of an IPO is exit liquidity for employees and early investors. This change has been a major driver of inequality in the states and there are a number of proposals to make it easier for the public to participate.
It's pretty sad that Google, Microsoft, Nvidia, Sequoia etc. are the ones who capture all of this growth and not the public, as would have been the case in the previous generation.