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Scott Galloway Predicts IPO Boom Could Lead to Recession

June 03, 2026 / 01:05

This episode discusses Anthropic's recent IPO filing, concerns about overvaluation in AI stocks, and potential economic impacts. Scott shares insights on the risks associated with these IPOs.

Scott highlights the possibility of significant stock declines, predicting that one or more AI companies could drop by 40 to 70 percent. He warns that this could lead to a recession in the US and globally.

He emphasizes that the current valuations of AI companies are unsustainable and that the technology itself will endure, but the inflated prices will not. Scott believes Anthropic has a better chance of maintaining its IPO price compared to its competitors.

Scott expresses concern that if major companies reduce their AI investments, it could severely affect the economy, referencing potential GDP impacts.

TLDR

Scott warns that AI IPOs, including Anthropic, may face severe stock declines and economic repercussions.

Episode

1:05

00:00:00

Scott, we're back with breaking news. Anthropic just confidentially filed its

00:00:03

IPO with the SEC. I want you to give me the downside because you were you definitely called this, but what would

00:00:09

be the worry for you of maybe all three IPOs or this one? What would be the warning signs or something you would pay

00:00:16

attention to? >> These stocks and the collective hallucination around the valuations

00:00:20

here, one or more of these stocks is going to be off 40 to 70% and it's going

00:00:24

to send the US and the global economy into a recession. The US has become a giant bet on AI and these companies are

00:00:30

overvalued. The technology will survive. These valuations won't. The danger here

00:00:34

is the following. I think Anthropic is the only one of these three that has a reasonable shot at trading above its IPO

00:00:42

price 12 months out. None of these companies can justify their valuation unless they are able to literally

00:00:49

destroy the labor market. And the first big company that announces we're cutting

00:00:53

back our AI spending, you know, you're going to see the GDP of Germany come out

00:00:58

of the market.

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Episode Highlights

Warning Signs for Investors
Experts discuss the potential risks and warning signs for AI IPOs.
“One or more of these stocks is going to be off 40 to 70%.”
@ 00m 20s
June 03, 2026

Episode Quotes

The danger here is the following.
Scott Galloway Predicts IPO Boom Could Lead to Recession
These valuations won’t survive.
Scott Galloway Predicts IPO Boom Could Lead to Recession

Key Moments

IPO Concerns00:03
Economic Impact00:55