The Prof G Pod with Scott Galloway Prof G Markets: Arm’s IPO, Instacart’s Valuation, and Salesforce’s Year of Efficiency
8 snips
Sep 11, 2023 Ed Elson, a PropG Media Analyst, joins the discussion to dig into the implications of Arm’s IPO and what it means for Softbank. They explore Instacart's fluctuating valuation as it prepares for its market debut, highlighting its unique business model. The conversation also covers Salesforce's efforts to boost profitability and the shifting advertising landscape, especially in light of Amazon's success. Their insights reflect broader trends in tech investments and media strategies, making for a captivating analysis of today’s financial climate.
AI Snips
Chapters
Transcript
Episode notes
Arm IPO and Valuation
- Arm is a great business, powering 99% of smartphones and receiving royalty payments for its chip designs.
- SoftBank's valuation of Arm at the IPO seems high, especially compared to other overvalued companies like NVIDIA.
SoftBank's Arm Investment
- SoftBank's Masayoshi Son predicted Arm's value would grow 5x in 5 years, but this did not happen.
- SoftBank's internal transfer of Arm shares between units might be a tactic to influence market perception of the company's value.
Instacart's Valuation Journey
- Instacart is a good business, offering time-saving convenience, but its initial valuation was inflated.
- Down rounds like Instacart's create tension among investors due to shifting liquidity preferences.