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Massive IPOs risk draining market funds, threatening stock rally, warns Jim Cramer.

Market News
27 Oct 2026, 01:09 WIB
CNBC
View Source
Bearish
Massive IPOs risk draining market funds, threatening stock rally, warns Jim Cramer.

Jim Cramer warned that a surge of large IPOs and capital raises, including Anthropic's recent IPO filing, could strain investor demand and weaken the current stock market rally. With $148 billion raised through IPOs this year, Cramer fears that the influx of new shares might outpace investor buying power, similar to the dot-com bubble era. Although he believes today's tech companies are fundamentally strong, the massive capital raises by firms like Meta and Alphabet could divert funds from broader market investments. Cramer cautions that while this doesn't signal an immediate market top, the growing supply of new stock could pressure the market despite solid corporate fundamentals.

As of Oct 27, 2026 05:21 WIB, Meta trades at USD 632.60, down 1.56% for the day and below its 52-week high of USD 777.59, while Alphabet is priced at USD 317.64, down 0.80%, also below its 52-week high of USD 402.62. On Pluang, Meta has a balanced order activity with 45% selling and 55% buying, whereas Alphabet shows strong buying interest at 91%. These figures highlight the cautious investor sentiment amid concerns about the surge in IPOs and capital raises noted by Jim Cramer.

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