Three Major Tech Companies Set to Go Public
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- SpaceX IPO Plans: SpaceX aims to raise $75 billion through its IPO to support ambitions for its new Starship rocket, orbital data centers, and Starlink internet, with an expected market cap of $1.77 trillion, although profit margins may be compressed due to high manufacturing and launch costs.
- Rapid Growth of AI Companies: OpenAI and Anthropic, both younger AI firms, are experiencing rapid growth, with OpenAI's annual revenue reaching $25 billion and Anthropic projected to hit $10.9 billion in Q2, translating to a run rate of $50 billion, indicating strong market demand.
- Market Value Expectations: Should the revenue growth of OpenAI and Anthropic continue, their IPOs are expected to exceed $1 trillion in market cap, although the exact audited financials remain unclear, investor focus is heavily on their growth potential.
- Investment Risk Assessment: Despite the ongoing AI revolution, analysts suggest that investors should approach the IPOs of these three companies with caution, particularly given SpaceX's high valuation which may lead to future investment disappointments.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy GOOGL?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 356.380
Low
305.00
Averages
374.25
High
400.00
Current: 356.380
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
SpaceX Goes Public, Sparking AI IPO Frenzy
- SpaceX IPO Plans: SpaceX aims to raise $75 billion through its IPO to fund ambitions for its Starship rocket, orbital data centers, and Starlink internet, despite a staggering market cap of $1.77 trillion and a price-to-sales ratio of 93, leading investors to be cautious about its future profitability.
- AI Companies Going Public: OpenAI and Anthropic are actively preparing for IPOs, with expected annualized revenues of $25 billion and $10.9 billion respectively this year, and if growth continues, both could see market caps exceeding $1 trillion, drawing significant investor interest.
- Intensifying Market Competition: The rapid growth of the AI sector has led to a surge in demand for tools from OpenAI and Anthropic in both business and consumer markets, and while their financials remain unclear, the trend of exponential growth has created a fervor among private market investors.
- Investment Risk Advisory: Despite the ongoing AI revolution, analysts caution investors regarding the high valuations of SpaceX, OpenAI, and Anthropic, as historical data shows that most IPO stocks underperform, particularly when debuting at elevated price-to-sales ratios.
See More
Buffett's Portfolio Favorites: Apple and Alphabet
- Buffett's Investment Principles: Over the past 60 years, Buffett has led Berkshire Hathaway to a nearly 20% compounded annual growth rate, significantly outperforming the S&P 500's 10%, demonstrating the effectiveness and durability of his value investing strategy, which continues to attract non-professional investors.
- Apple's Brand Strength: Despite lagging in the AI race, Apple has attracted 2.5 billion users, with its smartphones capturing seven of the top ten positions in global sales rankings last year, showcasing its strong competitive edge and customer loyalty in the market.
- Alphabet's Market Share: As the parent company of Google, Alphabet holds about 90% of the global search engine market share, with advertising revenue accounting for 70% of its total revenue, which underscores its leading position in digital advertising and strong profitability.
- Investment Timing Analysis: Currently, Apple shares trade at 33 times forward earnings estimates, while Alphabet trades at 25 times; although neither is at its cheapest, both are considered worthwhile investments due to their long-term growth potential as
See More
Three Major Tech Companies Set to Go Public
- SpaceX IPO Plans: SpaceX aims to raise $75 billion through its IPO to support ambitions for its new Starship rocket, orbital data centers, and Starlink internet, with an expected market cap of $1.77 trillion, although profit margins may be compressed due to high manufacturing and launch costs.
- Rapid Growth of AI Companies: OpenAI and Anthropic, both younger AI firms, are experiencing rapid growth, with OpenAI's annual revenue reaching $25 billion and Anthropic projected to hit $10.9 billion in Q2, translating to a run rate of $50 billion, indicating strong market demand.
- Market Value Expectations: Should the revenue growth of OpenAI and Anthropic continue, their IPOs are expected to exceed $1 trillion in market cap, although the exact audited financials remain unclear, investor focus is heavily on their growth potential.
- Investment Risk Assessment: Despite the ongoing AI revolution, analysts suggest that investors should approach the IPOs of these three companies with caution, particularly given SpaceX's high valuation which may lead to future investment disappointments.
See More
Buffett's Investment Strategy: Apple and Alphabet Insights
- Buffett's Investment Success: Over the past 60 years, Warren Buffett has led Berkshire Hathaway to a nearly 20% compounded annual growth rate, significantly outperforming the S&P 500's 10%, showcasing the effectiveness of his investment principles and providing a reliable reference for investors.
- Apple's Competitive Edge: Despite lagging in the AI race, Apple's strong brand power has led its smartphones to capture seven of the top ten global sales positions, with a user base exceeding 2.5 billion, creating ongoing service revenue that further solidifies its market position.
- Google's Market Dominance: Google Search maintains about 90% market share globally, making it Alphabet's primary revenue driver, with advertising accounting for 70% of total revenue, significantly enhancing Alphabet's competitive advantage in the digital advertising space.
- Investment Timing Analysis: Although Apple and Alphabet stocks are not at their cheapest, trading at 33x and 25x forward earnings respectively, they are still considered attractive investments due to their strong earnings growth and long-term prospects, making them worthy Buffett stocks to buy.
See More
Public Sentiment Shifts on Artificial Intelligence Amid Record Usage
- Protests on the Rise: On February 28, 2026, protests organized by PauseAI UK outside Google Deepmind's offices in London highlighted growing public concerns about AI development, even as global AI usage reached record highs, reflecting a complex societal attitude towards technology.
- Significant User Growth: OpenAI's ChatGPT achieved one billion monthly active users in May 2023, making it the fastest app to reach this milestone, showcasing its market dominance, although competitors like Claude and Meta AI experienced even faster user growth rates of 640% and 973%, respectively.
- Emotion-Driven Usage Changes: OpenAI's collaboration with the U.S. Department of Defense led to a surge in uninstalls, with a 295% day-on-day increase on February 28, indicating that public concerns over AI ethics and safety are influencing user behavior.
- Optimistic Market Outlook: Despite rising negative sentiment towards AI, a BCG survey revealed that 74% of frontline workers regularly use AI, and the global AI market is projected to exceed $4.8 trillion by 2033, indicating a deepening reliance on AI technologies.
See More
SpaceX IPO Sets Record with $75 Billion Raised
- Historic IPO: SpaceX priced its IPO at $135 per share, raising approximately $75 billion by selling 555.6 million shares, making it the largest IPO in U.S. history and significantly boosting the company's valuation to $1.77 trillion.
- Market Rebound: U.S. stock indices surged as hopes for a resolution in the U.S.-Iran conflict led to a 1.8% rise in the S&P 500, a 3.3% increase in the Nasdaq 100, and a 1.9% gain in the Dow Jones, reflecting investor optimism about market prospects.
- Tech Stocks Lead Gains: Technology stocks saw significant gains, with Nvidia, Google, and Amazon all rising, and Micron Technology leading with an 11.6% increase, indicating strong confidence in the tech sector's performance.
- Oil Price Decline Impact: Following Trump's announcement to cancel military strikes against Iran, West Texas Intermediate crude futures fell 2.58%, alleviating inflation concerns and providing support for recovery in other sectors.
See More
SpaceX Goes Public, Sparking AI IPO Frenzy
- SpaceX IPO Plans: SpaceX aims to raise $75 billion through its IPO to fund ambitions for its Starship rocket, orbital data centers, and Starlink internet, despite a staggering market cap of $1.77 trillion and a price-to-sales ratio of 93, leading investors to be cautious about its future profitability.
- AI Companies Going Public: OpenAI and Anthropic are actively preparing for IPOs, with expected annualized revenues of $25 billion and $10.9 billion respectively this year, and if growth continues, both could see market caps exceeding $1 trillion, drawing significant investor interest.
- Intensifying Market Competition: The rapid growth of the AI sector has led to a surge in demand for tools from OpenAI and Anthropic in both business and consumer markets, and while their financials remain unclear, the trend of exponential growth has created a fervor among private market investors.
- Investment Risk Advisory: Despite the ongoing AI revolution, analysts caution investors regarding the high valuations of SpaceX, OpenAI, and Anthropic, as historical data shows that most IPO stocks underperform, particularly when debuting at elevated price-to-sales ratios.
See More
Buffett's Portfolio Favorites: Apple and Alphabet
- Buffett's Investment Principles: Over the past 60 years, Buffett has led Berkshire Hathaway to a nearly 20% compounded annual growth rate, significantly outperforming the S&P 500's 10%, demonstrating the effectiveness and durability of his value investing strategy, which continues to attract non-professional investors.
- Apple's Brand Strength: Despite lagging in the AI race, Apple has attracted 2.5 billion users, with its smartphones capturing seven of the top ten positions in global sales rankings last year, showcasing its strong competitive edge and customer loyalty in the market.
- Alphabet's Market Share: As the parent company of Google, Alphabet holds about 90% of the global search engine market share, with advertising revenue accounting for 70% of its total revenue, which underscores its leading position in digital advertising and strong profitability.
- Investment Timing Analysis: Currently, Apple shares trade at 33 times forward earnings estimates, while Alphabet trades at 25 times; although neither is at its cheapest, both are considered worthwhile investments due to their long-term growth potential as
See More
Three Major Tech Companies Set to Go Public
- SpaceX IPO Plans: SpaceX aims to raise $75 billion through its IPO to support ambitions for its new Starship rocket, orbital data centers, and Starlink internet, with an expected market cap of $1.77 trillion, although profit margins may be compressed due to high manufacturing and launch costs.
- Rapid Growth of AI Companies: OpenAI and Anthropic, both younger AI firms, are experiencing rapid growth, with OpenAI's annual revenue reaching $25 billion and Anthropic projected to hit $10.9 billion in Q2, translating to a run rate of $50 billion, indicating strong market demand.
- Market Value Expectations: Should the revenue growth of OpenAI and Anthropic continue, their IPOs are expected to exceed $1 trillion in market cap, although the exact audited financials remain unclear, investor focus is heavily on their growth potential.
- Investment Risk Assessment: Despite the ongoing AI revolution, analysts suggest that investors should approach the IPOs of these three companies with caution, particularly given SpaceX's high valuation which may lead to future investment disappointments.
See More
Buffett's Investment Strategy: Apple and Alphabet Insights
- Buffett's Investment Success: Over the past 60 years, Warren Buffett has led Berkshire Hathaway to a nearly 20% compounded annual growth rate, significantly outperforming the S&P 500's 10%, showcasing the effectiveness of his investment principles and providing a reliable reference for investors.
- Apple's Competitive Edge: Despite lagging in the AI race, Apple's strong brand power has led its smartphones to capture seven of the top ten global sales positions, with a user base exceeding 2.5 billion, creating ongoing service revenue that further solidifies its market position.
- Google's Market Dominance: Google Search maintains about 90% market share globally, making it Alphabet's primary revenue driver, with advertising accounting for 70% of total revenue, significantly enhancing Alphabet's competitive advantage in the digital advertising space.
- Investment Timing Analysis: Although Apple and Alphabet stocks are not at their cheapest, trading at 33x and 25x forward earnings respectively, they are still considered attractive investments due to their strong earnings growth and long-term prospects, making them worthy Buffett stocks to buy.
See More
Public Sentiment Shifts on Artificial Intelligence Amid Record Usage
- Protests on the Rise: On February 28, 2026, protests organized by PauseAI UK outside Google Deepmind's offices in London highlighted growing public concerns about AI development, even as global AI usage reached record highs, reflecting a complex societal attitude towards technology.
- Significant User Growth: OpenAI's ChatGPT achieved one billion monthly active users in May 2023, making it the fastest app to reach this milestone, showcasing its market dominance, although competitors like Claude and Meta AI experienced even faster user growth rates of 640% and 973%, respectively.
- Emotion-Driven Usage Changes: OpenAI's collaboration with the U.S. Department of Defense led to a surge in uninstalls, with a 295% day-on-day increase on February 28, indicating that public concerns over AI ethics and safety are influencing user behavior.
- Optimistic Market Outlook: Despite rising negative sentiment towards AI, a BCG survey revealed that 74% of frontline workers regularly use AI, and the global AI market is projected to exceed $4.8 trillion by 2033, indicating a deepening reliance on AI technologies.
See More
SpaceX IPO Sets Record with $75 Billion Raised
- Historic IPO: SpaceX priced its IPO at $135 per share, raising approximately $75 billion by selling 555.6 million shares, making it the largest IPO in U.S. history and significantly boosting the company's valuation to $1.77 trillion.
- Market Rebound: U.S. stock indices surged as hopes for a resolution in the U.S.-Iran conflict led to a 1.8% rise in the S&P 500, a 3.3% increase in the Nasdaq 100, and a 1.9% gain in the Dow Jones, reflecting investor optimism about market prospects.
- Tech Stocks Lead Gains: Technology stocks saw significant gains, with Nvidia, Google, and Amazon all rising, and Micron Technology leading with an 11.6% increase, indicating strong confidence in the tech sector's performance.
- Oil Price Decline Impact: Following Trump's announcement to cancel military strikes against Iran, West Texas Intermediate crude futures fell 2.58%, alleviating inflation concerns and providing support for recovery in other sectors.
See More
