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?

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Comment（21）

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  • Pettan
    ·10-28
    TOP
    Keep continuing your best in your work now, so able to earn experiences and financial. We will cheer you up everyday.
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    • PawsAndProfits: 
      Thank you for the kind words and encouragement! 
      10-29
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  • WH the great
    ·10-28
    TOP
    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.
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    • PawsAndProfits: 
      Yes I agree. Valuation is through the roof now. But not sure if they can justify the lofty expectations.
      10-29
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  • SG_BING
    ·10-28
    TOP
    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。
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  • Botlas
    ·10-29
    TOP
    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
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  • henryxie1688
    ·10-28
    TOP
    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.
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  • Winstonlou
    ·10-29
    TOP
    AI is just going to take away jobs. How can Anthropic bring stocks to the moon if people have no money to buy stocks?
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    • 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.
      10-29
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  • Emilian
    ·10-29
    TOP
    Tesla's AI and autonomy angle still matters more long term, but waiting for the dust to settle first feels sane
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  • Wealthliner
    ·10-29
    头痛啊头痛啊头痛啊头痛啊头痛啊头痛啊头痛啊头痛啊头痛啊头痛啊头痛啊头痛啊头痛啊头痛啊头痛啊头痛啊头痛啊头痛啊头痛啊头痛啊还不该买入呢
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  • 古月说
    ·10-28
    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.
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  • stomachooo
    ·10-27
    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.
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  • fortuna
    ·00:12
    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.
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  • Tanwl1
    ·10-31 09:28
    All eyes are on this Anthropic IPO. Being one of the biggest and most popular AI company, it will kind of delegate how AI stocks will fare in the coming years.
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  • Watermelon8
    ·11:38
    Not sure is this the right time for Anthropic IPO when AI stocks are not doing well lately due to many negative news.
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  • Siawei
    ·10-31 00:32
    thanks for sharing...
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  • fadala
    ·10-30
    anthropic ipo is very interesting
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  • ABC888
    ·10-29
    [Miser] [Miser] [Miser]
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  • chewks
    ·10-29
    [Like]
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  • bs6969
    ·10-27
    Woof
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