OpenAI, Anthropic IPOs Could Spark a Selloff in These Struggling Stocks — IBM, Tesla, AppLovin Among Names at Risk

The upcoming initial public offerings (IPOs) of OpenAI and Anthropic may exacerbate the woes of already struggling stocks post-Labor Day, said strategists at Evercore ISI, spearheaded by Julian Emanuel.

Evercore sees further upside for AI stocks but warns that upcoming IPOs and seasonal tax-loss selling could accelerate the unloading of weaker AI-related stocks. The strategists at Evercore elucidated that investors may “make room” for these IPOs in their portfolios by reducing existing holdings, MarketWatch reported on Monday.

This trend is particularly relevant in the post-Labor Day market, with the mutual fund tax-loss selling season approaching in October. As this season nears, investors may sell underperforming stocks to realize losses, offset capital gains and lower tax bills. They could then redirect those proceeds toward anticipated blockbuster AI IPOs such as OpenAI and Anthropic, increasing pressure on weak performers.

Anticipating this portfolio shift, Evercore screened the Russell 3000 RUA for stocks meeting specific criteria: a market capitalization above $5 billion, a year-to-date decline of at least 10%, a gain of less than 20% from their 2026 low, and negative earnings-revision trends over the past three months.

Some of the names shortlisted in this category of 40 stocks are International Business Machines (NYSE:IBM), AppLovin (NASDAQ:APP), Tesla Inc. (NASDAQ:TSLA), AST SpaceMobile Inc. (NASDAQ:ASTS), McDonald’s Corp. (NYSE:MCD) and First Solar Inc. (NASDAQ:FSLR).

Anthropic, OpenAI Race Toward Bigger Valuations

Anthropic is gearing up for its IPO in the coming weeks and is reportedly targeting a $2 trillion valuation and up to $100 billion from a potential IPO, surpassing Space Exploration Technologies Corp. (NASDAQ:SPCX) figures. The Claude maker also sees a $30 trillion revenue opportunity, though experts question such massive TAM projections. Anthropic more than doubled Q2 revenue to $11.6 billion and could go public as early as October.

Meanwhile, OpenAI’s ChatGPT advertising business reached a $1 billion annualized revenue run rate within 200 days. The Sam Altman-led company plans to expand ads to over 40 countries, including India, as it diversifies revenue ahead of a potential IPO. Ads are clearly labeled and don’t affect ChatGPT responses or expose private user conversations.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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