Michael Burry Calls Anthropic's Valuation a Bubble Worth 78 S&P 500 Companies

BeInCrypto2026/10/08 05:00

Bitget offers one-stop trading for cryptocurrencies, stocks, and gold. Trade now!

A welcome pack worth 6200 USDT for new users! Sign up now!

Michael Burry says Anthropics valuation could buy 78 profitable companies in the SP 500, a price he calls a bubble. The list includes Dominos, Clorox, lululemon, and Hormel Foods, though Burry did not say which Anthropic valuation he used. The companys last private round, in May, priced it at $965 billion ahead of a planned initial public offering (IPO). How Does Anthropics Valuation Stack Up Against UPS? In his Substack post, Burry also benchmarked the figure against the 1990s. He said United Parcel Service (UPS) held the 1990 to 2000 record for inflation-adjusted pre-IPO valuations, at $119 billion. That price equaled 26 times earnings and 2.4 times sales, Burry said. UPS was 92 years old and earned a net margin of about 8.6%. A fun game in times like these is to go to the SP 500 Index and see how many profitable companies one can buy with the bubble private company valuation. Anthropic, by contrast, was founded in 2021. Its leaked draft prospectus shows a $42 billion net loss for 2025, Fortune reported. Reuters reported that most of the loss was an accounting charge rather than operating spending. However, the same filing shows $11.5 billion in second-quarter 2026 revenue and points to a second straight operating profit. It also lists $518 billion in planned cloud and infrastructure spending in coming years. Will Public Markets Pay for Growth Before Profit? Altimeter Capital, Dragoneer, Greenoaks, and Sequoia Capital led the $65 billion round that set the $965 billion mark, CNBC reported. Prospective investors now put fair value between $1.8 trillion and $2 trillion. Anthropic is targeting a listing before Thanksgiving, according to the same report. The post follows Burrys stock market warnings. On Oct. 5, he said stocks sit in a denial stage he expects to last six to nine months. Days after the May round, he told Substack subscribers that Anthropics long-term worth near $1 trillion was far from assured. A listing near $2 trillion would test whether public investors pay for revenue growth ahead of earnings. Reuters reported that analysts see the first AI lab to list as the pricing reference for the sector. Read the article at BeInCrypto

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

Understand the market, then trade.

Bitget offers one-stop trading for cryptocurrencies, stocks, and gold.

Trade now！

Last week, institutional investors significantly sold off individual stocks, resulting in a net outflow of $11.0 billion from the U.S. stock market. Funds were mainly withdrawn from the technology sector, marking the third largest single-week outflow from individual stocks in the history of Bank of America's statistics.

智通财经•2026/10/08 06:37

Third largest since 2008! US stocks saw single-week outflows of $11 billions, technology stocks hit hardest

Google (GOOGL.US) AI pharmaceutical company Isomorphic Labs launches new financing: Raised $2.1 billions five months ago, current round aims for a $50 billions valuation

Isomorphic Labs, a DeepMind spin-off, is in talks for new financing, with its valuation potentially reaching up to $50 billions. This comes only five months after its $2.1 billions Series B funding round.

智通财经•2026/10/08 06:36

Valuation hits a ten-year low! Barclays initiates coverage on 26 US medical technology stocks, with Stryker (SYK.US) among its top picks

Barclays analyst Christopher Pasquale on Tuesday initiated coverage on 26 US-listed medtech companies for the first time, and included Stryker (SYK.US) and Abbott (ABT.US) on the recommended list of large-cap medtech stocks.

智通财经•2026/10/08 06:23

Citigroup raises profit forecast; Australian exchange operator's stock price rises

On Thursday, shares of Australian Securities Exchange operator ASX Ltd (ASX.AX) surged to nearly a two-month high after Citi raised its annual profit outlook for the company, citing a strong first-quarter performance and predicting robust market activity to continue into the first half of the year. Details are as follows: The exchange operator's average daily trading volume in the spot market rose 16% year-on-year in September. Citi analysts noted that daily futures trading volumes climbed 44% during the month, approaching historical highs, possibly reflecting structural and cyclical factors, including interest rate prospects and changes in the bond market. Citi added that strong market activity is expected to last at least through the first half, and consequently raised ASX's annual earnings-per-share forecast by 2%. Citi pointed out, however, that corporate market activity remained subdued in September. Short-term market activity is expected to be boosted with Glencore's GLEN.L company planning a secondary listing in October and Firmus company planning an initial public offering (IPO) in October. Both Citi and UBS raised their target price for ASX from AU$60.10 and AU$64.20 to AU$61.00 and AU$65.50, respectively. Meanwhile, Goldman Sachs remains cautious about the strategy of the new CEO, Anthony Attia, and the company's potential future financial situation. Goldman Sachs is also alert to execution risks in the exchange operator's CHESS system replacement and technology modernization plans. This comes after the central bank stated in September that the company's clearing and settlement facilities had not met the bank's expectations. ASX shares closed up 3.8%, reaching their highest level in nearly two months and ranking among the top performers on the S&P/ASX 200 index.

路透社•2026/10/08 06:11