As Anthropic's blockbuster initial public offering gets set to take center stage on Wall Street, CNBC's Jim Cramer argued Thursday that several questions remain about the artificial intelligence startup's long-term prospects.
The Claude developer plans to price its shares Nov. 18 and begin trading the following day. In its updated IPO paperwork filed Tuesday, the company outlined plans to offer 825 million shares at $70 to $78 apiece. At the high end, the offering would raise $64.35 billion and value Anthropic at up to $1.405 trillion on a fully diluted basis.
Despite Anthropic's explosive growth and improving profitability, Cramer called out three uncertainties affecting his evaluation of the investment case:
For now, Cramer remains hesitant to recommend buying Anthropic shares when they begin trading, but said he is still evaluating the deal and its potential risks before making a final call. "For now, I'll just tell you that I'm wary of doing so," he said.
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