{"id":19066,"date":"2026-10-14T08:37:02","date_gmt":"2026-10-14T15:37:02","guid":{"rendered":"https:\/\/jasonsblog.ddns.net\/?p=19066"},"modified":"2026-10-14T08:40:28","modified_gmt":"2026-10-14T15:40:28","slug":"senior-investment-analyst-says-wall-street-has-lost-93-of-its-freaking-mind-over-ai","status":"publish","type":"post","link":"https:\/\/jasonsblog.ddns.net\/index.php\/2026\/10\/14\/senior-investment-analyst-says-wall-street-has-lost-93-of-its-freaking-mind-over-ai\/","title":{"rendered":"Senior Investment Analyst Says Wall Street Has Lost 93% of Its Freaking Mind Over AI\u2026"},"content":{"rendered":"\n

This article has some interesting numbers on Anthropic leading into the IPO. And the bankers love their bubbles and mightily profiting off their initial investments, but the frenzy for AI also serves another purpose, selling equipment and getting as many data centers built as possible leading into the unveiling of Antichrist for his mark of the beast system, a global surveillance system the likes of which the world has never seen… And things are moving fast, as even Linux Torvalds has been hyping AI in kernel development<\/a> with it being used more and more to the point I’m preparing to switch to an unfriendly towards AI BSD operating system (or maybe AI free patched Linux kernel if possible), as I don’t think AI code is getting properly vetted…<\/p>\n\n\n\n

https:\/\/revolver.news\/2026\/10\/senior-investment-analyst-says-wall-street-has-lost-93-of-its-freaking-mind-over-ai\/<\/a><\/p>\n\n\n

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The AI money machine is a glutton with an endless appetite for trillions of dollars. And you\u2019ve gotta wonder when somebody\u2019s going to look at these astronomical numbers and question if any of this makes actual sense. We\u2019re talking about companies being valued at hundreds of billions, even trillions of dollars, and investors are throwing heaps of money into AI, hoping they\u2019ve found the next \u201cbig thing.\u201d Have they? Maybe, but not everyone thinks so. And while the debate rages on, Anthropic, one of the biggest names in AI, is preparing for what could be an absolute financial bloodbath. The company behind Claude is reportedly eyeing an IPO that could value the business at an eye-popping $2 trillion. That\u2019s two trillion dollars for a company that was losing billions of dollars last year. And to make matters more wobbly, one investment analyst thinks Anthropic is actually worth around $144 billion. And if you do the math, which the experts did, that\u2019s about 93 percent below the $2 trillion valuation. That means, if this guy\u2019s right, the investors buying into Anthropic at those sky-high prices could be setting themselves up for one really expensive disappointment. And the thing to remember here is that the bigger these AI valuations get, the more money the companies have to make to justify them. And that\u2019s why one senior analyst thinks Wall Street has completely lost its damn mind. Yahoo Finance picked up a wild warning from Kyle Guske II, a senior investment analyst at New Constructs, about Anthropic\u2019s plans to go public. <\/p>\n\n\n\n

Yahoo Finance:<\/a><\/p>\n\n\n\n

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New Constructs senior investment analyst Kyle Guske II calls Anthropic\u2019s planned offering an \u201cunprecedented test\u201d of investor gullibility. His note, released Tuesday, titled the deal the most ridiculous IPO of 2026, according to CNBC. CNBC reported on October 7 that Anthropic will be the \u201cmost ridiculous IPO\u201d of the year. He is measuring against a listing valuation of around $2 trillion, according to Moomoo. The firm\u2019s low scenario implies Anthropic would be overvalued by 93%. New Constructs says it receives no compensation for writing about specific companies.<\/p>\n<\/blockquote>\n\n\n\n

The numbers don\u2019t add up under these more \u201cpessimistic\u201d assumptions. Keep in mind, New Constructs has sounded this type of alarm before. Back in 2019, they called WeWork\u2019s IPO the most ridiculous of the year. WeWork eventually went bankrupt\u2026 But AI might have even more unique problems than WeWork. For one, the cost of building out all the infrastructure needed is a huge part of the problem. <\/p>\n\n\n\n

Yahoo Finance:<\/p>\n\n\n\n

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The firm built a reverse discounted cash flow model, which starts from a price and works backward to the business performance that price would require. All three cases use 100% revenue growth in 2027, differing only in what happens after. The model applies a 9.33% discount rate based on seven mega-cap technology peers. It deducts $518 billion in liabilities for planned cloud and data center spending. The authors note their assumptions may be too optimistic, as Anthropic could need more cash and computing spending than projected.<\/p>\n<\/blockquote>\n\n\n\n

Data centers ain\u2019t cheap, folks. And that\u2019s a really serious problem. Anthropic may be growing like crazy, but running an AI company costs a small fortune. According to New Constructs, Anthropic could be facing hundreds of billions of dollars in expenses down the road. And that\u2019s a helluva lotta money to make back, even for a company doing as well as Anthropic. And speaking of doing well\u2026 the people who got into Anthropic when it was worth a lot less could sell shares at a valuation approaching $2 trillion. But any new investors would be buying into the company at a price that assumes some out-of-this-world future success. But it\u2019s a pretty sweet deal for anybody who got in early, right? Hmmm. <\/p>\n\n\n\n

Yahoo Finance:<\/p>\n\n\n\n

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New Constructs argues the offering mainly provides exit liquidity for private investors and insiders. It points to large spending commitments and customer concentration: according to the leaked draft reported by Fortune, two customers supply about a quarter of revenue. The leaked draft shows 2025 revenue of $4.6 billion and operating expenses of $13 billion, producing an operating loss of $8 billion-plus and a net loss of $42 billion. A non-cash charge from revaluing convertible instruments accounted for $34 billion of that net loss. Anthropic had $20.28 billion in cash at year end.<\/p>\n<\/blockquote>\n\n\n\n

According to the leaked numbers, Anthropic raked in $4.6 billion in 2025. Sounds impressive. But it also spent a whopping $13 billion just running the business. That means for every dollar coming in, about three bucks were going out. But, before we get too doom and gloom, Anthropic\u2019s latest numbers are actually looking pretty good. They\u2019ve made a profit two quarters in a row, which is a big improvement from the billions it was losing last year. So while the analyst thinks Anthropic is wildly overvalued, the company is growing fast and making money. Does that mean it\u2019s actually worth $2 trillion? That\u2019s the part nobody can agree on. <\/p>\n\n\n\n

Yahoo Finance:<\/p>\n\n\n\n

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Recent results contradict the model\u2019s assumption of a sharp growth slowdown. Revenue was $4.73 billion in Q1 2026 and $11.5 billion in Q2, with operating profit for the second quarter in a row. Its Series H round in May 2026 raised $65 billion at a valuation of $965 billion, well above the firm\u2019s low case. The bearish case projects results years from now; current numbers show the opposite trend. The two views cover different time frames. The real question is how long growth holds up.<\/p>\n<\/blockquote>\n\n\n\n

On one side, you\u2019ve got an investment research firm warning that Anthropic is wildly overvalued. But this company\u2019s quarterly revenue more than doubled. That\u2019s big growth. Can Anthropic keep that momentum? If they do, investors will have a much better argument for that huge valuation. But there\u2019s still a huge cloud hanging over all of this\u2026 how long can that kind of growth really continue? And that\u2019s what makes these massive AI price tags so hard to swallow. Investors are expecting so much from these companies that even making billions of dollars won\u2019t be enough to keep them happy.<\/p>\n","protected":false},"excerpt":{"rendered":"

This article has some interesting numbers on Anthropic leading into the IPO. And the bankers love their bubbles and mightily profiting off their initial investments, but the frenzy for AI also serves another purpose, selling equipment and getting as many data centers built as possible leading into the unveiling of Antichrist for his mark of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,7],"tags":[],"class_list":["post-19066","post","type-post","status-publish","format-standard","hentry","category-tech","category-world"],"blocksy_meta":{"styles_descriptor":{"styles":{"desktop":"","tablet":"","mobile":""},"google_fonts":[],"version":8}},"featured_image_src":null,"author_info":{"display_name":"Jason","author_link":"https:\/\/jasonsblog.ddns.net\/index.php\/author\/jturning\/"},"_links":{"self":[{"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/posts\/19066","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/comments?post=19066"}],"version-history":[{"count":4,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/posts\/19066\/revisions"}],"predecessor-version":[{"id":19071,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/posts\/19066\/revisions\/19071"}],"wp:attachment":[{"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/media?parent=19066"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/categories?post=19066"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/tags?post=19066"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}