Good Morning. This is the Investor Lookout with the daily digest.

Here’s what we got today:

• 👨‍⚖️ Judge Rules SiriusXM's Cancellation Process Unlawful

• 🛍️ Amazon Doubles Its Anthropic Bet with $4B AI Investment

Judge Rules SiriusXM's Cancellation Process Unlawful

SiriusXM's 'please hold' strategy just got disconnected. A New York judge ruled that SiriusXM ($SIRI) made the cancellation process for their subscriptions too burdensome. Judge Frank ruled that the satellite radio provider broke the Restore Online Shopper Confidence Act (ROSCA), which requires companies to enforce "simple mechanisms" to cancel a subscription. The company allowed clients to sign up via an online form but required them to withdraw through a phone-based customer service unit, pitching as many as five retention offers.

• SiriusXM will have to change its cancellation process for its New York customers

• FTC announced a "click-to-cancel" rule to make subscriptions easier to cancel, starting in 2025

Amazon Doubles Its Anthropic Bet with $4B AI Investment

Amazon found the best Black Friday deal: a $4 billion investment in Anthropic. Amazon ($AMZN) is doubling down on its Anthropic investment, adding another $4 billion following its previous contribution of the same amount. The e-commerce company remains a minority investor despite the amount invested, Anthropic said on Friday. The investment will take the form of convertible notes and will be delivered in phases, with the first tranche being $1.3 billion. Anthropic, known for its AI chatbot Claude, plans to train and deploy its AI models on Amazon's Trainium and Inferentia chips.

• Anthropic secured a $500 million investment from Alphabet ($GOOGL) last year, with another $1.5 billion promised over time

• The startup is in discussions with additional investors to raise more funds

Markets

The S&P 500 is inflated by 25% because investors don't care about fundamentals. Market analysis suggests the S&P 500 is overvalued by 25%, as it has not been driven by earnings growth but by expanding P/E ratios. [Read]

History Is Useless for Wall Street Pros Betting on Stocks Rally. Traditional post-election 5% rally may not apply to this year, as the S&P 500 is already up 25% in 2024 after gaining 24% in 2023. [Read]

Bond Market Halts Brutal Run as Buyers Pounce on 4.5% Yields. The U.S. Treasury market shows signs of stabilization after a two-month yield increase, with 10-year yields finding support below 4.5%. [Read]

Business

Bitcoin set for weekly rise of 8.3% as crypto frenzy continues post Trump's win. The cryptocurrency has risen 41% since U.S. Election Day and has become a leading "Trump trade." [Read]

Pipeline operator ONEOK to buy remaining shares of EnLink in $4.3 bln deal. ONEOK ($OKE) is expanding its Permian Basin presence with an all-stock deal to acquire the remaining shares of EnLink Midstream ($ENLC). [Read]

Tesla and Rivian are settling their battery tech theft lawsuit. Tesla ($TSLA) and Rivian ($RIVN) settled a four-year lawsuit in which Tesla accused Rivian of stealing battery technology through employee poaching. [Read]

Diversify, But Not Too Much. "Diversification is a protection against ignorance. It makes very little sense for those who know what they're doing." — Warren Buffet

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.