Emily Herbert

People are kind of saying maybe this is a bit of a red flag.

It's people wanting to take a stock even when they don't know what the price is.

They're willing to pay any price.

And that sort of attitude...

sometimes is a warning signal of maybe a kind of bubble in the market or too much hope, too much optimism, especially if there's a lot of interest right at the beginning and the share price goes up and up and up.

And then suddenly there's a piece of news or something is found out about the company.

A lot of people could lose money.

Yeah.

So on the one hand, it means that these companies can see the massive appetite for artificial intelligence and they want to make the most of it.

But a few investors have pointed out that at some points in past stock market cycles, when you've had kind of big IPOs like this, big influxes of equity supply, it can be a sign that the cycle is near the top.

And the reason for that, to some extent, is just because of the supply and demand dynamics that dictate the stock market.

So you have companies issuing equities and you have investors who are buying stocks.

And if you have a big increase in supply, like we're going to see this summer with probably SpaceX, OpenAI and Anthropic all listing, the question is, is there going to be enough demand to pick up all of that extra supply?