Situational Awareness LP discloses a $13.7 billion put stake in GLW, citing unsustainable valuations amid weak cash flow conversion.
Situational Awareness LP, managed by Leopold Aschenbrenner, disclosed a $13.7 billion put position in Corning Incorporated (GLW) for Q1 2026, targeting 155,000 shares. The move follows a 300% surge in GLW shares over the past year, driven by AI-driven optical fiber demand from hyperscalers like Meta, pushing its market capitalization to $164 billion.
Corning reported $4.35 billion in quarterly revenue but generated just $188 million in free cash flow, a 4.3% conversion rate. The firm’s physical infrastructure demands ongoing capital investments, contrasting with its software-like valuation. Analysts note the disconnect between market expectations and cash generation.
The disclosure highlights growing skepticism among institutional investors about GLW’s ability to sustain its elevated valuation amid rising operational costs and capital requirements.