As we head into the last week before Election Day, I want to remind you to vote. I already turned my ballot in. Maybe you have too. We’re not the Editorial Board offering endorsements here, just encouragement to exercise this great civic responsibility.
With that public service announcement complete, let’s turn our attention to the markets. In addition to this election, there is another BIG (dare we say “Huuuggge” IPO coming up. That is Anthropic’s IPO, which I have mentioned before. It’s now official.
The questions that arise are the status of data centers, as that has attracted a lot of negative attention over the past few weeks and months. We heard this about mining facilities for cryptocurrencies and this seems like a logical extension of that issue.
One more reason your vote counts.
Rumor has it their IPO could top $2 trillion in valuation. We will wait for the roadshow to see where demand is and go from there. If you are interested in getting shares of this IPO, please give us a call, as there may be better ways of buying it. Furthermore, I would hold that buying at the IPO price may be an okay price, but likely buying the first day (after trading commences) may end up being a losing bet. That’s exactly what I said about SpaceX, and here’s what their stock chart looks like since IPO.
That first day, it traded as high as $200 (you are still losing money four months later). If you bought it at the IPO price ($135), you are still in the money.
I would guess that Anthropic will likely be the same type of outcome. The highs may not be so high, but rumor has it they will be looking for as much as $100 billion float (shares outstanding).
Again, we will see how it proceeds.
Lastly, but somewhat related, the Semiconductor stocks have been beaten up lately. It does appear we have a potential “double bottom” that could bounce, but only time will tell on that. Take a look at the chart below.
Finally, this Sunday we return to “standard time” and gain that hour back. Enjoy that extra hour and don’t forget to adjust your clocks. And if you have figured out where Congress is with this whole effort to remove time changes, please let me know. I can’t keep track!
Have a good week and please do reach out with questions, comments, or concerns.