SpaceX, OpenAI, and Anthropic are preparing for massive IPOs with sky-high valuations that could create poor outcomes for ordinary investors. SpaceX's public offering could raise up to $75 billion with a valuation exceeding $1 trillion, while OpenAI and Anthropic each target valuations near $900 billion. These figures dwarf even the largest previous IPOs like Saudi Aramco's $29 billion offering.

Historical IPO data reveals a troubling pattern for such richly priced offerings. When price-to-sales ratios exceed 40:1, the median return over three years has been negative -15.4% from the offer price and -58.5% from the first closing price. Ordinary investors typically buy at the higher closing price, putting them at significant disadvantage compared to insiders who benefit from the lower offer price.

While these companies will likely be included in major stock indexes, their initial public float will be less than 10% of total market value. For individual investors, buying shares at these anticipated prices carries substantial risk based on historical performance patterns. The article concludes that speculative bets on these hyped IPOs are unlikely to yield profits for most investors.