{
  "id": 19933045,
  "title": "Anthropic Is Expected to List on Nov. 19. I'd Rather Own Amazon Stock Than the IPO.",
  "url": "https://urgent.news/2026/11/14/anthropic-is-expected-to-list-on-nov-19-id-rather-own-amazon-stock",
  "topic": "ai",
  "section": "AI",
  "published": "2026-11-14T06:23:02.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/11/14/anthropic-is-expected-to-list-on-nov-19-i-d-rather-own-amazon-stock-than-the-ipo/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "The artificial intelligence startup Anthropic is set to list on the Nasdaq under the ticker ANT on November 19. The company filed an amended registration notice on November 10, estimating the expected price of its 825 million shares to range between $70 and $78 each. At the upper end of the range, Anthropic could be valued at approximately $1.4 trillion on a fully diluted basis.\n\nIn May, Anthropic announced a funding round with a valuation of $965 billion. According to Bloomberg, the offering attracted around six times the number of orders compared to the number of shares available.\n\nMeanwhile, Amazon (AMZN -0.29%) trades near $267, slightly below its 52-week high. With the stock valued at about 25 times its expected 2027 earnings, many believe that investing in Amazon stock would be a more sensible choice than purchasing shares through the IPO.\n\nAmazon holds over 5% of Anthropic's outstanding shares after the offering, as stated in the filing. However, Amazon's significant influence over Anthropic stems from a long-term commitment. In April, Anthropic agreed to spend at least $110 billion with Amazon from May 2026 to April 2036, regardless of the actual utilization of computing capacity. Any shortfall would result in Amazon paying the difference to Anthropic.\n\nThe commitment covers computing capacity, which Amazon offers through its cloud computing arm, Amazon Web Services (AWS), and its largest source of profit. In the third quarter, AWS revenue surged by 39% year-over-year to $46.0 billion, surpassing the 37% growth in the second quarter. Additionally, AWS operating income increased by 55% to $17.8 billion, accounting for almost two-thirds of Amazon's total operating income of $28.1 billion.\n\nAmazon's retail and advertising segments also contributed $10.3 billion in operating income in the third quarter. Advertising sales reached $19.6 billion, up 12% year-over-year, excluding currency fluctuations. However, this growth was slower than the 22% increase in the same quarter a year earlier. Amazon's ad sales in the past four quarters were approximately $78 billion, more than double Anthropic's revenue during the same period.\n\nIn total, Amazon's sales amounted to nearly $800 billion over the past 12 months, with a market capitalization of around $2.9 trillion. Consequently, the stock trades at around 3.6 times sales. Despite Anthropic's impressive growth, its valuation remains significantly higher at up to 40 times its sales, which were $35.3 billion in the 12 months ending September. This valuation is nearly half of Amazon's, with less than a twentieth of Amazon's sales.\n\nWhile Anthropic's growth is remarkable, its expansion costs have been substantial. Amazon's free cash flow was negative $42.4 billion over the past year, driven by increased spending on property and equipment. This cash burn may persist for an extended period, posing a significant risk to the stock.\n\nAnthropic's revenue grew by 47% in the third quarter, reaching $17.0 billion, up from $11.4 billion in the second quarter. However, profits declined, with an operating loss of $567 million in Q3 compared to $974 million in Q2. The filing mentioned approximately $5.0 billion in computing capacity purchased on short-term commitments, which is costlier than the multi-year contracts, along with $2.0 billion in non-cash charges related to a donation matching program.\n\nInvesting in a newly listed stock may also involve absorbing excess supply. Currently, owners have restrictions on selling (lock-ups), but these restrictions gradually loosen. According to the filing, up to 316 million shares could be eligible for sale immediately after the offering, while up to 3.3 billion more may become eligible within six months, four times the 825 million shares offered in the IPO.",
  "summary": "Why pay up for the Claude maker's shares when the e-commerce giant already collects from it?",
  "key_points": [
    "Anthropic to list on Nasdaq under ANT on November 19",
    "Amazon trades near $267, 25 times expected 2027 earnings",
    "Amazon holds 5% of Anthropic shares, committed $110B computing spend"
  ],
  "editors_take": "Anthropic's massive valuation relative to its sales and ongoing operating losses suggests that investors may find more stability in Amazon despite the startup's significant growth and high demand.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}