Prof G Markets
00:38:23 · Ed Elson
[00:38:23] S3: We'll be right back after the break. And if you're enjoying the show so far, send it to a friend, and please follow us on YouTube or on Spotify or wherever you get your podcasts.
00:38:40 · Scott Galloway
[00:38:40] S0: Support for the show comes from VCX, the public ticker for private tech. For generations, American companies have moved the world forward through their ingenuity and determination. And for generations, everyday Americans be a part of that journey through perhaps the greatest innovation of all, The US stock market. It didn't matter whether you were a factory worker in Detroit or a farmer in Omaha, anyone could own a piece of the great American companies. But now that's changed. Today, our most innovative companies are staying private rather than going public. The result is that everyday Americans are excluded from investing and getting left further behind while a select few reap all the benefits until now. Introducing VCX, the public ticker for private tech, now available wherever you buy stocks. VCX by Fundrise gives everyone the opportunity to invest in the next generation of innovation, including the companies leading the AI revolution, space exploration, defense tech, and more. Visit getvcx.com for more info. That's getvcx.com. Carefully consider the investment material before investing, including objectives, risks, charges, and expenses. This and other information can be found in the fund's prospectus at getvcx.com. This is a paid sponsorship. Support for the show comes from Perplexity Computer. If you run an ecommerce business, this might seem familiar. You start your morning by opening, say, five to 10 tabs. Shopify, Google Ads, Klaviyo, maybe a few half baked spreadsheets you've been meaning to organize better. Then you do the dance of making all those tabs work together. Before you know it, it's already lunchtime and you've spent your day pulling information together from a half a dozen different places. Perplexity computer can help simplify things. Instead of opening every dashboard yourself, computer connects to the tools you already use and built a command center that gives you a complete picture of your business. It pulls together your revenue, ad spend, margin, inventory, email performance, and more, all before you've even had your coffee. The best part is that it doesn't tell you what's happening. It actually gets to work, and instead of being locked into one AI model, it can send your project to the right model for the job. For a limited time, only our listeners can try Perplexity Computer for free. Go to pplx.ai/propgmarkets.
00:40:49 · Scott Galloway, Kara Swisher, S5, Ed Elson
That's pplx.ai/prof G Markets to try Computer Today. Most AI tools are still answering questions while Perplexity Computer is completing full projects. [00:41:01] S2: Hi, everyone. I'm Kara Swisher. [00:41:03] S0: And I'm Scott Galloway. [00:41:04] S2: Twice a week, we get together on Pivot to sort through the biggest stories in tech, business, and politics, and we're taking the show back on the road for a live tour in November. [00:41:12] S0: So we'll bring hot takes. I'll bring the insight and the dick jokes, and Kara will try. Keyword is try to You'll keep me in get to see her, hit me in person live. [00:41:24] S5: I'll do it. [00:41:25] S2: If someone has to do it [00:41:27] S0: We'll cover AI, whatever chaos Washington has cooked up that week, and every billionaire misbehaving. [00:41:33] S2: That's all of them. And you'll also get to participate in audience q and a, so bring your best questions. Scott will probably answer ones you didn't ask. We also have secret special guests, which you'll enjoy for every city. Get tickets at pivottour.com. That's pivottour.com. [00:41:47] S0: We are selling out, so don't wait, and we look forward to seeing you. [00:41:59] S3: We're back with Prof G Markets.
00:42:01 · Scott Galloway
[00:42:01] S0: I wanted to hate this s one, but after reading it, I I just... I couldn't help but recognize some of the numbers here. And I've now... I wanna say I've done a one eighty. But this is a company that, as far as I I can tell, posted positive adjusted operating income. And I hate the word adjusted because it did take excluded stock based comp. But they posted essentially adjusted operating income for a company that's scaling at an unprecedented rate. It... What's so rare here is the combination at this growth rate. Most companies growing 13 x are burning cash in an accelerating rate, not approaching profitability and on an adjusted basis. And if you look at this thing in the pricing, it's pricing cheaper than Palantir and roughly in line with NVIDIA while growing much faster than both. It just feels like on a risk adjusted basis... And I wanna be clear. There are existential threats everywhere. If all of a sudden, if a programmer at Anthropic actually tells tells the bots or the agents to be creative and have a sense of humor and it starts... It decides to disclose a billion people's porn usage, the next day, it's shut down. There's all sorts of political political existential rescue. If NVIDIA figures out a way to put their chip on an iPhone and go straight to client, if if if Facebook takes advantage of the agentic layer and connects the 500,000,000 businesses they already have a relationship with or the 3,000,000,000 consumers they already have a relationship, there are existential threats everywhere. But based on what we're seeing now, if they can navigate this landmine and continue to show a fraction of the growth they're recognizing right now, this thing becomes a cash spigot trading at a multiple that makes that makes NVIDIA and especially Palantir look expensive.
00:43:59 · Ed Elson, Josh Brown, Scott Galloway
[00:43:59] S3: But I'm not worried about the political risk. I'm worried about the financial risk that they've already signed up for. I'm worried about the $800,000,000,000 that are about to show up. I worry more about the former. [00:44:10] S4: I worry about both. If the Europeans decide that they don't really want this in their country, or there's gotta be- [00:44:23] S0: US frontier labs, you're out. [00:44:24] S4: Yeah, there has to be a different version that conforms to the EU, and this could happen in Asia too. Think we're so early in this. We don't even really know where the true political fault lines are. And like to me, that's why Scott, it's not pricing in line with its growth. Think the market is being, I know it sounds crazy. I'm saying the market's being rational and then it's gonna be a $2,000,000,000,000 company with losses. I just think like we're not pricing this thing based on its its growth rate and and not taking into account all the existential risks that you just cited and I did. I think we're we're sort of doing both at the same time. [00:45:14] S3: Do you think it goes out, Josh, at $2,000,000,000,000? Cause there's been debate what might get cut down to one and a half.
00:45:14 · Ed Elson, Josh Brown, Scott Galloway
[00:45:14] S3: Do you think it goes out, Josh, at $2,000,000,000,000? Cause there's been debate what might get cut down to one and a half. [00:45:21] S4: If it gets cut down to one and a half, it'll get to two. I think the the enthusiasm around this company will be peaking right as it goes public. Like, I don't think this is one of those things where, oh, they fucked up, they stayed private too long and the heat is off of this thing. I actually think they nailed the timing. And again, Sam Altman did something interesting. He said, actually, we're not going to go public until we figure out all these safety issues because this is the part he didn't say out loud. I don't want my s one to read like Dario's s one. [00:46:01] S0: Yeah. Because he's such a thoughtful guy concerned about us.