Ed Elson

John Foley is the head of the Lex column at the Financial Times.

John, thank you for joining us on Proftery Markets.

We appreciate it.

Thanks.

Just three more days until SpaceX goes public.

The company will raise $75 billion, making it the largest IPO of all time.

After that, Anthropic and OpenAI will go public.

How much will they raise?

Unclear, but...

given the size of their recent rounds, $65 billion and $122 billion, respectively, we can assume that those IPOs will also be massive, likely around $100 billion, and almost certainly larger than SpaceX's IPO.

Then there is Google, which will raise $85 billion, the largest equity financing event of all time.

And then after that,

possibly Meta, which supposedly wants to raise tens of billions of dollars as well.

So that's already around $400 billion in new equity supply.

But wait, there is more.

Because according to Goldman Sachs, nearly $500 billion worth of shares are about to be unlocked.

after their lockup periods expire this year.

So now we're actually up to roughly $900 billion, nearly a trillion dollars in new equity supply that is about to hit the stock market.

Why does any of this matter?

Well, it all goes back to supply and demand.