Anthropic's Q3 results make its IPO math harder, analysts say

Anthropic's road to the stock market is getting harder, Fortune reports. Third-quarter results released on Monday showed revenue growth slowing while expenses climbed faster than in earlier quarters, and several analysts told the magazine that math and past experience are not on the side of investors hoping for stellar returns. Institutional investors are reportedly pushing the company and its IPO advisers toward the lower end of the $1.5 trillion to $2 trillion valuation range it is seeking. Even that may be too pricey: any valuation above about $1.41 trillion would mean paying more than $40 for every dollar of revenue of the past year, a level reached by only a handful of companies. The IPO will test how much the market pays for slowing growth.