Davis Wilson:

The Jensen Huang Situation

Nvidia (NVDA) has lost hundreds of billions of dollars in market value after the discovery CEO Jensen Huang was having an extramarital affair with a Chinese spy. But here's the truly fascinating part: Wall Street's earnings expectations have actually gone up.

Analysts currently expect Nvidia to earn $15.93 per share next year. A week ago, that estimate was $15.91. Ninety days ago? $12.84. In other words, Nvidia's stock is collapsing while Wall Street's expectations for the business continue moving higher.

At $170 per share, Nvidia trades for around 10.5 times next year's expected earnings. That's remarkable for a company analysts currently expect to grow earnings 71% next year.

I'm taking the Jensen Huang situation seriously. The lawsuits are real. The government investigations are real. The possibility of tighter Asian restrictions are real. And there's now a level of key-person risk around Huang that I certainly wasn't modeling a week ago. But none of those things have changed the numbers yet.

Until they do, I'm holding my Nvidia shares. If you've got the stomach for what could be a very volatile few weeks, I suggest you do too.

⇒ Read More Here

Greg Guenthner:

Anthropic's IPO Is Said To Be Multiple Times Oversubscribed As Roadshow Gets Under Way

Anthropic has drawn orders for multiple times the stock on offer in its initial public offering, according to Bloomberg. The demand stemmed from large, anchor-style expressions of interest, and the terms of the listing may still shift.

Through the IPO and a private placement, Anthropic and its co-founders could raise as much as $90.4 billion combined at the top of the price range, according to its filings. The two offerings together would surpass SpaceX's IPO in size and set a new record for a stock market debut.

The company is aiming for a fully diluted valuation of roughly $1.4 trillion. The valuation target is below the roughly $1.5 trillion investors expected a week ago.

Goldman Sachs (GS) and Morgan Stanley (MS) are leading the IPO alongside 20 additional banks, according to the filing. The stock is expected to be listed on the Nasdaq Global Select Market with the ticker ANT.

The company plans to price the offering on Nov. 18 and begin trading on Nov. 19.

⇒ Read More Here

Chris Campbell:

Man Who Lost $308,000 on Sports Bets Sues Kalshi for Offering Illegal Gambling

A man who lost over $308,000 making sports wagers on Kalshi is suing the prediction market for violating the state of Washington's ban on online gambling. He's trying to turn those losses into an overall victory with a lawsuit seeking a payment of over $580,000.

Bellevue, Washington, resident Scott Bright's "wagering occurred at a time when it was unlawful in Washington and when the Washington Attorney General had already sued KalshiEX LLC in this Court alleging precisely that," said the gambler's lawsuit filed on September 24 in King County Superior Court. Kalshi has since filed a motion to dismiss the lawsuit.

While state attorneys general throughout the U.S. are trying to shut down Kalshi for allegedly violating state gambling laws, Bright's case tests whether unsuccessful gamblers can obtain restitution from the company through individual lawsuits.

Even if Bright's lawsuit fails, gamblers who lost on Kalshi could get money back through the lawsuits filed by state governments. For example, Washington's lawsuit against the company said the attorney general "is entitled to recover all money Washingtonians have lost through Defendant Kalshi's illegal gambling operation" under the state's Recovery of Money Lost at Gambling Act. Washington already won a court order restricting the kinds of wagers Kalshi can offer in the state, but it took effect after Bright's losses.

⇒ Read More Here