OpenAI IPO Rumors Raise Concerns Among Executives
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 13 2026
0mins
Should l Buy MSFT?
Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly.IPO RUMORS:Some OpenAI executives were surprised by a Wall Street Journal report that said OpenAI was aiming to IPO in December, The New York Times' Cade Metz and Mike Isaac, with two people familiar with the company's internal discussions saying that their main reason for concern was their belief that the company "wasn't ready." OpenAI is hoping to triple its revenue this year from the roughly $13B in 2025 revenue, the report notes.NEW FUNDING:Anthropicit raised $30B in Series G funding led by GIC and Coatue, valuing Anthropic at $380B post-money. The round was co-led by D. E. Shaw Ventures, Dragoneer, Founders Fund, ICONIQ, and MGX. The investment will fuel the frontier research, product development, and infrastructure expansions that have made Anthropic the market leader in enterprise AI and coding. Significant investors in this round include Accel, Addition, Alpha Wave Global, Altimeter, AMP PBC, Appaloosa LP, Baillie Gifford, Bessemer Venture Partners, affiliated funds of BlackRock, Blackstone, D1 Capital Partners, Fidelity Management & Research Company, General Catalyst, Greenoaks, Growth Equity at Goldman Sachs Alternatives, Insight Partners, Jane Street, JPMorganChase through its Security and Resiliency Initiative and Growth Equity Partners, Lightspeed Venture Partners, Menlo Ventures, Morgan Stanley Investment Management, NX1 Capital, Qatar Investment Authority, Sands Capital, Sequoia Capital, Temasek, TowerBrook, TPG, Whale Rock Capital, and XN. This round also includes a portion of the previously announced investments from Microsoftand Nvidia.CLASSIFIED NETWORKS:The Pentagon is urging leading AI companies, including Google, xAI, OpenAI and Anthropic, to deploy their models on classified military networks with fewer standard user restrictions, Reuters' David Jeans and Deepa Seetharaman. The goal, according to officials, is to make advanced AI tools accessible across both unclassified and classified domains to support defense applications, according to the report.AI SELF-SUFFICIENCY:Microsoftis planning to pursue "true self-sufficiency" in the AI space by building its own models and reducing reliance on OpenAI, Melissa Heikkila of The Financial Times, citing comments made by AI chief Mustafa Suleyman. According to Suleyman, this strategic shift following a restructuring of the company's relationship with OpenAI in October, prompting Microsoft to advance its AI technology independently.IN-HOUSE AI CODING ASSISTANT:Amazonis directing internal teams to use its in-house AI coding assistant, Kiro, for production work, a move that has drawn criticism from roughly 1,500 employees advocating for the use of Anthropic's Claude Code instead, Business Insider's Eugene Kim. The situation highlights growing internal debate over tooling preferences and broader competition among enterprise AI coding platforms, Kim writes.BETS ON AI:As the housing market stalls, Zillow'sCEO Jeremy Wacksman sees AI as "an ingredient rather than a threat" that can both help the company protect its turf and reinvent how people search for homes, Wired's Steven Levy. Zillow is integrating AI into every aspect of its business, from the way it showcases houses to having agents automate its workflow. Meanwhile, working with a real-estate analytics company called HouseCanary, Googlehas been experimenting in several cities with putting home listings alongside Google real estate agent ads in search. If the test works out, it's easy to imagine that Google one day might bring the same data to AI products like Gemini, Wired says. Predictably, the Google experiment led to yet another dip in Zillow's stock price. It also generated speculation that Google might buy Zillow, the publication adds.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 392.740
Low
500.00
Averages
631.36
High
678.00
Current: 392.740
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Concerns Over AI Stock Bubble Intensify
- Investor Concerns Rise: A Bank of America survey reveals that 23% of investment-grade credit investors cite the 'threat of an AI bubble' as their top concern, a significant increase from 9% in December 2025, indicating declining confidence in AI stocks.
- Rising Borrowing Risks: The survey highlights worries among credit investors about AI companies borrowing excessively, which could lead to increased debt risk if companies exceed their repayment capabilities, potentially impacting credit ratings and borrowing costs.
- Massive Investments by Giants: The four largest AI hyperscalers—Alphabet, Microsoft, Meta, and Amazon—are projected to spend around $700 billion on AI-related capital expenditures by 2026, and if these investments do not yield substantial returns, it could negatively affect shareholders and bondholders.
- Adjusting Investment Strategies: To mitigate risks associated with an AI bubble, investors might consider reallocating portions of their portfolios towards value stocks or small-cap ETFs, which tend to perform more steadily in volatile markets and reduce reliance on AI stocks.
See More
Analysis of Money Flows in Magnificent Seven Stocks
- Money Flow Trends: In early trading, negative money flows were observed in the Magnificent Seven stocks, including Apple, Amazon, Google, Meta, Microsoft, NVIDIA, and Tesla, indicating a lack of short-term confidence in these stocks, which may lead investors to reassess their positions.
- ETF Performance Weakness: The SPDR S&P 500 ETF and Invesco QQQ Trust also showed negative money flows, reflecting a general market sentiment downturn, which could lead investors to adopt a cautious stance on tech stocks, impacting the liquidity and pricing of related ETFs.
- Bitcoin Market Volatility: Bitcoin initially dropped following news of the Iran war but rebounded on the announcement of Ayatollah Khamenei's death, highlighting the cryptocurrency market's sensitivity to geopolitical events, prompting investors to monitor how such events influence market sentiment.
- Investment Strategy Recommendations: Investors are advised to maintain long-term quality positions while tactically adding to their investments based on market signals to navigate current uncertainties, ensuring the stability and growth potential of their portfolios.
See More
Broadcom's Q1 2026 Earnings Outlook and Analyst Insights
- Demand Sustainability Concerns: RBC Capital analyst Pajjuri highlighted uncertainties regarding Anthropic's demand sustainability beyond the first half of FY27, primarily due to its agreements with Nvidia and Microsoft, which could impact Broadcom's future performance.
- Optimistic Earnings Expectations: Broadcom is expected to report its Q1 earnings on March 4, with projected revenue of $19.1 billion, reflecting a 22.4% year-over-year increase, driven by strong TPU and networking demand that may exceed market expectations.
- Price Target Reduction: RBC Capital lowered its price target for Broadcom from $370 to $340 while maintaining a 'Sector Perform' rating, indicating cautious investor sentiment due to concerns over the lack of visibility into Anthropic's demand.
- Market Sentiment Shift: On Stocktwits, retail sentiment around AVGO shares surged from 'bullish' to 'extremely bullish' in the past 24 hours, reflecting optimism among investors about AI revenue doubling, contributing to a 67% increase in stock price over the past year.
See More
Couple's Financial Manifesto Revisited and Market Insights
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- Mixed Job Market Signals: The U.S. Bureau of Labor Statistics reported a 130,000 increase in non-farm payrolls for January, more than double the expected 60,000, with the unemployment rate dropping to 4.3%; however, most new jobs were concentrated in healthcare and social assistance, indicating an uneven economic recovery.
- Rising Government Debt: The Congressional Budget Office projects that the U.S. government will overspend by $5.8 trillion in 2026, with this figure expected to rise to $6 trillion by 2036, pushing federal debt to 120% of GDP, which poses significant challenges to fiscal sustainability and long-term economic health.
- Importance of Financial Management: Robert and Elizabeth Brokamp discussed their financial manifesto created 26 years ago, emphasizing the necessity of regular financial check-ins to prevent marital discord due to financial disagreements, highlighting the critical role of effective financial communication in maintaining family harmony.
See More
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- Dow Jones Milestone: On February 6, 2026, the Dow Jones Industrial Average surpassed 50,000 for the first time, marking a 25% increase from 40,000 less than two years ago, indicating strong recent performance driven by high allocations in industrials and energy sectors.
- Job Market Signals: The U.S. Bureau of Labor Statistics reported a 130,000 increase in non-farm payrolls for January 2026, more than double the expected 60,000, with the unemployment rate dropping to 4.3%, reflecting positive economic recovery signals, although most new jobs were in healthcare and social assistance.
- Government Deficit: According to the Congressional Budget Office, the U.S. government will spend $5.8 trillion more than it collects in taxes and tariffs in 2026, with projections indicating this annual deficit could rise to $6 trillion by 2036, highlighting ongoing fiscal pressures and reliance on borrowing.
- Importance of Financial Planning: Robert and Elizabeth Brokamp discussed their financial manifesto created 26 years ago, emphasizing the need for regular check-ins on financial goals and priorities to prevent financial disagreements that can lead to marital discord.
See More
AI Drives Growth in Software Stocks
- Oracle Financial Performance: Oracle reported total revenue of $16.05 billion in Q2 FY2026, with its software division generating $5.87 billion, accounting for 36% of total revenue, indicating strong performance in cloud services and software, and is expected to benefit from AI integration moving forward.
- Microsoft Market Position: Microsoft, valued at approximately $3 trillion, ranks as the fourth-largest publicly traded company globally, with Q2 FY2026 revenue reaching $81.3 billion, a 17% increase year-over-year, and its robust Microsoft 365 and Azure services provide stable revenue streams, with a future stock price target of $596, indicating a potential 49% upside.
- Palantir Software Demand: Palantir's revenue for Q4 reached $1.407 billion, up 70% year-over-year, and it secured $4.26 billion in total contract value during the quarter, reflecting strong demand for its AI platform, with analysts projecting a stock price target of $186, representing a potential 38% increase.
- Adobe Revenue Growth: Despite facing AI competition, Adobe's revenue in Q4 FY2026 was $6.19 billion, a 10% increase from the previous year, demonstrating its ongoing appeal in the creative software market, with a stock price target of $408, suggesting a potential 58% gain.
See More
Concerns Over AI Stock Bubble Intensify
- Investor Concerns Rise: A Bank of America survey reveals that 23% of investment-grade credit investors cite the 'threat of an AI bubble' as their top concern, a significant increase from 9% in December 2025, indicating declining confidence in AI stocks.
- Rising Borrowing Risks: The survey highlights worries among credit investors about AI companies borrowing excessively, which could lead to increased debt risk if companies exceed their repayment capabilities, potentially impacting credit ratings and borrowing costs.
- Massive Investments by Giants: The four largest AI hyperscalers—Alphabet, Microsoft, Meta, and Amazon—are projected to spend around $700 billion on AI-related capital expenditures by 2026, and if these investments do not yield substantial returns, it could negatively affect shareholders and bondholders.
- Adjusting Investment Strategies: To mitigate risks associated with an AI bubble, investors might consider reallocating portions of their portfolios towards value stocks or small-cap ETFs, which tend to perform more steadily in volatile markets and reduce reliance on AI stocks.
See More
Analysis of Money Flows in Magnificent Seven Stocks
- Money Flow Trends: In early trading, negative money flows were observed in the Magnificent Seven stocks, including Apple, Amazon, Google, Meta, Microsoft, NVIDIA, and Tesla, indicating a lack of short-term confidence in these stocks, which may lead investors to reassess their positions.
- ETF Performance Weakness: The SPDR S&P 500 ETF and Invesco QQQ Trust also showed negative money flows, reflecting a general market sentiment downturn, which could lead investors to adopt a cautious stance on tech stocks, impacting the liquidity and pricing of related ETFs.
- Bitcoin Market Volatility: Bitcoin initially dropped following news of the Iran war but rebounded on the announcement of Ayatollah Khamenei's death, highlighting the cryptocurrency market's sensitivity to geopolitical events, prompting investors to monitor how such events influence market sentiment.
- Investment Strategy Recommendations: Investors are advised to maintain long-term quality positions while tactically adding to their investments based on market signals to navigate current uncertainties, ensuring the stability and growth potential of their portfolios.
See More
Broadcom's Q1 2026 Earnings Outlook and Analyst Insights
- Demand Sustainability Concerns: RBC Capital analyst Pajjuri highlighted uncertainties regarding Anthropic's demand sustainability beyond the first half of FY27, primarily due to its agreements with Nvidia and Microsoft, which could impact Broadcom's future performance.
- Optimistic Earnings Expectations: Broadcom is expected to report its Q1 earnings on March 4, with projected revenue of $19.1 billion, reflecting a 22.4% year-over-year increase, driven by strong TPU and networking demand that may exceed market expectations.
- Price Target Reduction: RBC Capital lowered its price target for Broadcom from $370 to $340 while maintaining a 'Sector Perform' rating, indicating cautious investor sentiment due to concerns over the lack of visibility into Anthropic's demand.
- Market Sentiment Shift: On Stocktwits, retail sentiment around AVGO shares surged from 'bullish' to 'extremely bullish' in the past 24 hours, reflecting optimism among investors about AI revenue doubling, contributing to a 67% increase in stock price over the past year.
See More
Couple's Financial Manifesto Revisited and Market Insights
- Dow Jones Milestone: On February 6, 2026, the Dow Jones Industrial Average surpassed 50,000 for the first time, marking a 25% increase from 40,000 less than two years ago, outperforming both the S&P 500 and NASDAQ, which reflects a resurgence of investor confidence and stability in turbulent economic times.
- Mixed Job Market Signals: The U.S. Bureau of Labor Statistics reported a 130,000 increase in non-farm payrolls for January, more than double the expected 60,000, with the unemployment rate dropping to 4.3%; however, most new jobs were concentrated in healthcare and social assistance, indicating an uneven economic recovery.
- Rising Government Debt: The Congressional Budget Office projects that the U.S. government will overspend by $5.8 trillion in 2026, with this figure expected to rise to $6 trillion by 2036, pushing federal debt to 120% of GDP, which poses significant challenges to fiscal sustainability and long-term economic health.
- Importance of Financial Management: Robert and Elizabeth Brokamp discussed their financial manifesto created 26 years ago, emphasizing the necessity of regular financial check-ins to prevent marital discord due to financial disagreements, highlighting the critical role of effective financial communication in maintaining family harmony.
See More
Revisiting the Couple's Financial Manifesto
- Dow Jones Milestone: On February 6, 2026, the Dow Jones Industrial Average surpassed 50,000 for the first time, marking a 25% increase from 40,000 less than two years ago, indicating strong recent performance driven by high allocations in industrials and energy sectors.
- Job Market Signals: The U.S. Bureau of Labor Statistics reported a 130,000 increase in non-farm payrolls for January 2026, more than double the expected 60,000, with the unemployment rate dropping to 4.3%, reflecting positive economic recovery signals, although most new jobs were in healthcare and social assistance.
- Government Deficit: According to the Congressional Budget Office, the U.S. government will spend $5.8 trillion more than it collects in taxes and tariffs in 2026, with projections indicating this annual deficit could rise to $6 trillion by 2036, highlighting ongoing fiscal pressures and reliance on borrowing.
- Importance of Financial Planning: Robert and Elizabeth Brokamp discussed their financial manifesto created 26 years ago, emphasizing the need for regular check-ins on financial goals and priorities to prevent financial disagreements that can lead to marital discord.
See More
AI Drives Growth in Software Stocks
- Oracle Financial Performance: Oracle reported total revenue of $16.05 billion in Q2 FY2026, with its software division generating $5.87 billion, accounting for 36% of total revenue, indicating strong performance in cloud services and software, and is expected to benefit from AI integration moving forward.
- Microsoft Market Position: Microsoft, valued at approximately $3 trillion, ranks as the fourth-largest publicly traded company globally, with Q2 FY2026 revenue reaching $81.3 billion, a 17% increase year-over-year, and its robust Microsoft 365 and Azure services provide stable revenue streams, with a future stock price target of $596, indicating a potential 49% upside.
- Palantir Software Demand: Palantir's revenue for Q4 reached $1.407 billion, up 70% year-over-year, and it secured $4.26 billion in total contract value during the quarter, reflecting strong demand for its AI platform, with analysts projecting a stock price target of $186, representing a potential 38% increase.
- Adobe Revenue Growth: Despite facing AI competition, Adobe's revenue in Q4 FY2026 was $6.19 billion, a 10% increase from the previous year, demonstrating its ongoing appeal in the creative software market, with a stock price target of $408, suggesting a potential 58% gain.
See More
