Anthropic IPO, AI Trade and Prediction Markets

• (1:00) - Is This A Healthy Pullback or Should Investors Be Concerned?
• (4:20) - Big Takeaway’s From Anthropic’s S-1 Filing
• (9:30) - What Has Growing Competition In AI Done To The Current Market?
• (12:30) - Should You Consider Buying Anthropic Before Its IPO?
• (15:40) - Tema Photonics & Optical ETF: LAZR
• (18:25) - Tema Space Innovators ETF: NASA
• (19:40) - What Impact Will Midterm Elections Have On The Stock Market Going Forward?
• (23:30) - Tema Trading & Predictions Markets ETF: DICE
• (27:45) - Episode Roundup: SPCX
•         Podcast@Zacks.com

In this episode of ETF Spotlight, I speak with Paisley Nardini, Head of Investment Strategy at Tema ETFs, about the AI trade, the Anthropic IPO, and the growing popularity of prediction markets.

The broader AI trade stumbled last week as investors questioned valuations and the sustainability of the rally. Shares of Google parent Alphabet GOOG and Amazon AMZN tumbled after the companies reported earnings. Was this a healthy pullback, or are we starting to see cracks in the AI story?

Anthropic, one of the two companies playing a major role in the AI boom, recently released its S-1 as it prepares to go public in what could be the biggest IPO ever. In an amended Form S-1 filing today, the company reported that its revenue for the nine months ended September 30 grew 1,200% from the same period last year.

At the end of the third quarter, Anthropic had a massive cushion of $146.6 billion in cash and other liquid investments. Investors are already looking for ways to gain exposure to the company. Anthropic currently represents about 10% of the Tema Photonics & Optical ETF LAZR.

LAZR provides exposure to Anthropic through a special purpose vehicle, or SPV. The ETF's Anthropic position was acquired and is marked at an implied valuation of $1.4 trillion.

Prediction markets have also been gaining attention, particularly around elections, politics, and major economic events. The Tema Trading & Prediction Markets ETF DICE is the first and only ETF offering exposure to both Kalshi and Polymarket.

The NASA ETF offered pre-IPO exposure to SpaceX SPCX through an SPV. Now that SpaceX is publicly traded, what happens to the ETF's SPV position?

Tune in to the podcast to learn more.

Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research