The AI boom has created some of the most extraordinary valuations in market history.

Investors are pouring billions into companies with ambitious growth projections, enormous capital requirements, and little evidence that their business models can generate sustainable profits.

Anthropic may be the most extreme example yet.

Its leaked IPO prospectus reveals staggering losses, $518 billion in liabilities, and a valuation that assumes  never-before-seen levels of revenue and profits, like multiples of the most profitable companies in the world today. These numbers make the planned IPO look more like exit liquidity for private equity and Wall Street insiders than a wealth building opportunity for public market investors.

Anthropic is not alone.

Across the market, investors are paying enormous premiums for future growth while overlooking the poor underlying economics of the businesses they’re buying.

With earnings season kicking off next week, the disconnect between expectations and economic reality is increasingly important. That’s why we focus on what the numbers actually say, not what the headlines claim.

Read our latest research below to see where we’re uncovering hidden risks, identifying potential earnings surprises, and finding opportunities backed by economic reality rather than hype.

Stocks Most Likely to Beat:

When Street Earnings are too low, it increases the likelihood of an earnings beat. See the five stocks most likely to beat Street Earnings here.

The Most Ridiculous IPO of 2026:

Anthropic’s leaked financials reveal more than enough to assess the gargantuan risks of investing in this IPO. See all the red flags, which were featured by CNBC.

Model Portfolio Updates:

We updated our Most Attractive and Most Dangerous Stocks Model Portfolios.

#1 Stock Picking – Again!

Our proven-superior research earned us #1 rankings ­– again – on SumZero for October 2026.

Focus List Outperformance in 2026:

Our Focus List Stocks: Long Model Portfolio outperformed by 4% through 3Q26 and our Focus List Stocks: Short Model Portfolio outperformed as a short by 10% through 3Q26.

Danger Zone Podcast:

CEO David Trainer joined Chuck Jaffe to discuss the many reasons Anthropic is in the Danger Zone ahead of its planned IPO.

We hope you had a great week!

See a preview of upcoming research below.

Upcoming Research