Evercore Warns AI IPOs Could Pressure These Struggling Stocks. IBM and AppLovin Face Different Tests

Investors seeking a slice of a possible blockbuster AI flotation might sell something they already own to pay for it. That is the portfolio risk behind Evercore ISI’s warning reported September 7. International Business Machines Corporation (NYSE:IBM) and AppLovin Corporation (NASDAQ:APP) appeared on its screen of potential casualties.

Julian Emanuel’s team identified underperformers with negative earnings-revision trends that could face additional pressure as investors prepare for possible OpenAI and Anthropic listings and seasonal tax-loss selling. The screen describes vulnerability. It does not establish that a fund has sold either stock to finance an IPO, or that those listings will happen on a fixed timetable.

The same selling pressure would meet different businesses

For International Business Machines Corporation (NYSE:IBM), the…