Revealed: Motley Fool’s Secret Anthropic IPO Stocks

Anthropic could be heading towards one of the biggest IPOs in stock market history. According to The Motley Fool, Anthropic's revenue exploded 12-fold last year, and reports suggested the company could eventually go public at a valuation exceeding $2 trillion. But, The Motley Fool believes there's a better way to profit from Anthropic's growth than waiting for its IPO. In a new presentation, they're teasing two publicly traded companies that already own significant stakes in Anthropic. One of them even owns a piece of OpenAI, meaning it could benefit regardless of which AI agent comes out on top. They won't reveal the stocks unless you buy their newsletter, but I have good news. I sat down and went through their email, was able to figure out both stocks based on the clues in the email. In this video, I'm going to reveal them completely free. But, before we do anything, let's look at The Motley Fool's recent track record to see if they're worth listening to. One of their biggest winners was Kintara Pharmaceuticals. That stock has roughly quadrupled since the recommendation. Neo Performance Materials was another huge winner and is up well over 100%, and Arista Networks has been an excellent call, climbing roughly 150%. But, the losers have been just as dramatic. Exome lost about half its value since the pitch. Globant has done even worse and is down more than 50%, and the biggest loser in the group has been Serve Robotics. That stock is down roughly 70%. So, The Motley Fool's recent track record has been extremely boom or bust. Three of these stocks have more than doubled, and three of them have lost half their value. All right, let's look at the first company being pitched and reveal it now. According to The Motley Fool, this company owns a stake in Anthropic worth more than the average company in the S&P 500, but that's just the beginning. They describe it as several massive businesses operating under one roof, and earlier this year, it made a multi-billion dollar investment in Anthropic's biggest competitor, OpenAI. So, not only does this company have ownership stakes in both AI giants, it's also providing the computing infrastructure they need to operate. The Motley Fool claims Anthropic and OpenAI have signed contracts worth more than $200 billion over the coming years, which means this stock is Amazon, ticker AMZN. Amazon has been a major investor in Anthropic for years, and earlier this year it announced a $50 billion investment in OpenAI. But what's especially interesting is its cloud computing business, Amazon Web Services. Anthropic has committed more than a hundred billion to AWS over the next decade, while OpenAI expanded its own agreement with Amazon to a hundred billion. So while Anthropic and OpenAI compete for dominance in artificial intelligence, Amazon stands to benefit from both. And this is what makes Amazon such an interesting investment. It doesn't necessarily need to predict which AI company will win. It can make money providing the infrastructure either way. Now, Amazon obviously needs very little introduction. Most people know it as the world's dominant online retailer, but the company is much more diversified than that. You have its massive e-commerce operation, its massive advertising business, Prime subscription, and of course AWS. And AWS is arguably the most important piece of Amazon's long-term growth story. It's one of the world's largest cloud computing platforms, providing the infrastructure that businesses need to operate everything from websites to increasingly sophisticated AI models. In fact, AWS generated $46 billion in revenue during the most recent quarter, growing an impressive 39% year-over-year. Now, Amazon actually reported earnings yesterday and the stock is getting hammered this morning. Shares were down around 7% in pre-market trading after the company missed Wall Street's expectations. Amazon reported earnings of $1.89 per share, compared with expectations of roughly $1.97. Revenue came in at 201.9 billion, also slightly below estimates. But I think the bigger concern is how much Amazon is spending on artificial intelligence. The company expects capital expenditures of approximately 222 billion this year, and its free cash flow over the trailing 12 months has fallen to negative 42.4 billion. That's an enormous amount of money being invested, and investors are understandably concerned about how long it will take to generate an adequate return. And I don't think those concerns should be dismissed. Amazon is making a bet that demand for AI infrastructure will continue growing for years. If that demand disappoints or the economics of these investments don't work out as expected, the company could face some serious pressure. But here's why I'm not particularly worried about this earnings report. Despite missing expectations, AWS revenue still grew 39%. It's fastest growth 5 years. And Amazon's operating income actually increased more than 60% reaching 28.1 billion with the company reporting its highest operating margin ever. To me, those are not numbers of a struggling business. They're the numbers of a company investing aggressively while its underlying operations continue to strengthen. And when I look at Amazon, I don't see an Anthropic investment. I see a dominant e-commerce business, an enormously profitable cloud platform, a growing advertising operation, and now ownership stakes in two of the biggest names in artificial intelligence. That's a combination I find very attractive. Now, I wouldn't buy Amazon expecting to double my money overnight. And with this much spending, there's certainly a chance the stock could fall further. But if you're willing to buy shares and hold them for the next 5 to 10 years, I think Amazon is one of the best long-term opportunities in the market. It's genuinely one of my favorite companies and stocks and the kind of business I'd feel comfortable making a core position in a diversified portfolio. So, my final verdict is a strong buy. And today's sell-off only makes the opportunity more interesting to me. Now, let's move on to the second stock. According to The Motley Fool, this company already has recorded tens of billions of dollars in investment gains from its ownership stake in Anthropic without selling a single share. And that's not all. They also revealed this company has delivered 12 consecutive quarters of double-digit revenue growth. So, we're talking about an extremely profitable business that was already growing at an impressive rate before you even consider its Anthropic. This is Alphabet, parent owner of Google, ticker G O O G L. Google has been one of Anthropic's biggest investors for years with earlier disclosures putting its ownership stake at roughly 14%. And as Anthropic's valuation has skyrocketed, so has the estimated value of Google's investment. Earlier this year, Alphabet reported enormous unrealized gains on its investment portfolio, including holdings in Anthropic and SpaceX. Now, it's important to understand that these aren't necessarily realized profits. They're accounting gains reflecting increases in the estimated value of the investments the company still owns. And Alphabet hasn't just invested in Anthropic. The two companies also have a massive cloud computing partnership with Anthropic agreeing to use Google's custom AI chips, known as TPUs, in a deal worth tens of billions of dollars. So, Alphabet has the potential to benefit from Anthropic in two ways, through its ownership stake and by selling its computing power needed to develop AI. And obviously, Google's another company that doesn't need much introduction. Its search engine remains one of the most dominant businesses in the world, while YouTube is another enormous advertising platform. But Alphabet also owns Google Cloud, develops its own Gemini AI models, and operates businesses like Waymo. And what's interesting is that Google's actually competing against Anthropic through Gemini while simultaneously investing in Anthropic and providing its own computing infrastructure. So, regardless of which AI model ultimately comes out on top, Alphabet has several different opportunities to benefit from this technology. In its latest quarter, the company's revenue increased 25% to 127.6 billion, and Google Cloud revenue more than doubled, reaching 30.7 billion. That's extraordinary growth for a business this size. Now, just like Amazon, Google also reported earnings this week, and investors were not happy. In fact, Alphabet shares plunged nearly 13% yesterday after the company missed Wall Street's expectations. Revenue came in at 127.6 billion, slightly below estimates, while earnings per share were $2.12 compared to expectations around $3.01. Now, part of that earnings miss came from a $8.7 billion accounting loss on its investment portfolio, but there are some genuine concerns here. Google search advertising revenue grew just 12%, slowing from 17% in the previous quarter. And that's important because search advertising remains the foundation of Alphabet's profitability. As people increasingly use AI chatbots instead of traditional search engines, Google faces a possibility that some of those highly profitable advertising dollars could disappear. Even Google's own AI-powered search features aren't monetizing every query as effectively as traditional search. So, this is a real risk and something I would be watching closely. And the other concern is spending. Alphabet expects capital expenditures between 195 billion and 205 billion this year, and quarterly free cash flow was negative 9.1 billion. That's an enormous commitment artificial intelligence, and investors want evidence that these investments will eventually generate attractive returns. But, here's why I'm still bullish. Despite these concerns, Google's overall revenue grew 25% and operating income increased 30% to more than 40 billion. Google Cloud revenue more than doubled and its operating profit more than tripled. So, while the stock market is focused on slowing search growth and enormous AI spending, the underlying company is still producing tremendous growth. And I think Google is particularly well positioned because it owns so much of the AI technology stack. It has its own AI models, its own custom chips, a massive cloud platform, and billions of users across its products. That's an advantage few companies can replicate. Now, I wouldn't ignore the possibility that AI fundamentally changes how people search the internet. And I certainly wouldn't assume that Google's enormous spending will automatically pay off. But, when I weigh those risks against the strength of the underlying business, I still see an excellent long-term investment. And after nearly a 13% decline in a single day, the valuation is certainly more attractive than it was before earnings. For someone willing to buy and hold for the next 5 to 10 years, I think Alphabet belongs in the same conversation as Amazon. It's a company I'd be very comfortable owning as a long-term core holding. So, my final verdict on Alphabet is another strong buy. And I think earnings-driven sell-off could turn out to be a good buying opportunity for patient investors. And before you go, don't forget to grab my free report on the top 10 stocks to buy and hold right now. These are companies I believe offer combination of long-term growth potential and strong underlying businesses. Just click the link in the description, enter your email, and I'll send the full report straight to your inbox.