Anthropic IPO injected renewed optimism, will it bring major stocks to the moon, or crush and burn because of concerns over AI spending?

PawsAndProfits
10-27

Disclaimer: Nothing I say or post should be considered financial advice. Please do your own due diligence before making any investment decisions.‌

Anthropic just announced its filing for public IPO yesterday, which injected fresh optimisim among AI names and bring the tech sector up yesterday from the sea of red last week. It is projected to be one of the largest cap IPO ever in history. I am sure everyone is itching to get their hands on this stock, which produce one of the most sophiscated and powerful AI model ever known. However, on a closer look at their balance books, they are projected to be worth $100 billion or more, with 80.7 billion of the portion as debt. Enlighten me, how does a company justify such a hefty valuation with such a huge amount of debt? They are promising investors a pipe dream, whether or not the dream is viable is up to you to decide.

Pairing $Alphabet(GOOGL)$ and $Microsoft(MSFT)$ together with Fed announcement tomorrow will create some volatility and uncertainty as well. I am definitely keen to see whether whales will have renewed optimism in this sector, or the script will flip to the red side again, similar to last week.[Spurting]

@PawsAndProfits - Specialist in combining FA and TA for Options selling and Swing trading.[666]

Microsoft, Alphabet Earnings Diverge: Whose AI Spend Pays Off First?
Alphabet rose 1.34% and Microsoft slipped 0.06% Wednesday, then fell 9.93% and rose 3.45%, respectively, after earnings. Microsoft beat estimates with $92.3B revenue and $4.89 adjusted EPS; Azure grew 48%. Alphabet’s $127.58B revenue and $2.12 EPS missed expectations. Bulls see cloud demand and Microsoft’s cash generation supporting AI capex; bears warn spending, depreciation, and investment losses amplify risk. What must Amazon, Intel, and SanDisk show to prove AI spending is generating cash?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Pettan
    10-28
    Pettan
    Keep continuing your best in your work now, so able to earn experiences and financial. We will cheer you up everyday.
  • WH the great
    10-28
    WH the great
    Anthropic’s IPO could be a landmark AI investment opportunity, but valuation will be critical. Strong growth prospects must be weighed against intense competition, high computing costs, and uncertain long-term profitability.
    • PawsAndProfits: 
      Yes I agree. Valuation is through the roof now. But not sure if they can justify the lofty expectations.
  • SG_BING
    10-28
    SG_BING
    债务本身就是一个薄弱的支柱。真正的问题是，在估值超过业务之前，现金消耗是否可以转化为持久的人工智能回报。
  • Botlas
    10-29
    Botlas
    Anthropic IPOs has the high chance of changing the entire market but it really comes down to the valuation and if it is able to entice the market with its goals
  • henryxie1688
    10-28
    henryxie1688
    Debt alone is a weak anchor here. The real question is whether the cash burn can translate into durable AI returns before that valuation outruns the business.
  • Winstonlou
    10-29
    Winstonlou
    AI is just going to take away jobs. How can Anthropic bring stocks to the moon if people have no money to buy stocks?
    • PawsAndProfits: 
      Yes this is one of the perspective for sure. But thats how rich get richer, poor gets poorer. So instead of looking at the potential negative impact, why not look on the positive side instead? Its an once in a lifetime opportunity if u know how to capitalize on it.
Leave a comment
21
6