BofA’s Hartnett Warns Mega-IPOs Risk Bubble Like Roaring ‘20s

Mega IPOs like those eyed by SpaceX and OpenAI threaten to push the weighting of tech in equity benchmarks beyond market-bubble levels of concentration, according to Bank of America Corp. strategist Michael Hartnett.

Elon Musk’s SpaceX has set out plans for the world’s biggest initial public offering, while ChatGPT maker OpenAI aims to beat rival Anthropic to the market. The gigantic share sales would feed into the optimism around tech and artificial intelligence that’s already powering one of the narrowest rallies in decades.

“Strong price action, retail mania, slumping vol ... so bubbly,” Hartnett said in a note. “Add ...