Kara Swisher · 1:05:55
Or predictions.
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— Predictions segment begins —
Kara Swisher · 1:08:08
Okay, Scott. Let's hear our predictions. You've kind of let loose a few during the show here. What?
Scott Galloway · 1:08:12
Pick Well
Kara Swisher · 1:08:14
Some good ones, I
Scott Galloway · 1:08:15
This is this is always dangerous, but I'm gonna do it anyways. Alphabet's reporting... We're talking on Thursday. Alphabet's reporting at the end of the day, and I think rumors of Alphabet's struggles have been greatly exaggerated. I still think while ChatGPT is ascending dramatically and presents... Does present an existential threat to search, YouTube is just an absolute juggernaut. And you talk about Waymo. I just think this company is so well run, and Google continues to be the largest tollbooth in the history of mankind. I think that they're going to beat, expectations this afternoon because I think some of those expectations have been beaten down. And then another one, I think in the next twelve to twenty four months, we're going to see a spin prophylactically in big tech for the first time. And then I will
Kara Swisher · 1:09:03
Pick one. Pick one. I'm gonna pick... We'll each pick one. I say YouTube. Well, maybe the advertising.
Scott Galloway · 1:09:08
I think it's the ad business.
Kara Swisher · 1:09:09
Ad business.
Scott Galloway · 1:09:09
You're right. I'm sorry. Ad business for alphabet.
Kara Swisher · 1:09:12
We would like YouTube, but it's probably the business.
Scott Galloway · 1:09:15
And then the most interesting one, and this is... I'm putting words in your mouth or taking your words, and I will credit you. Tesla right now has, I think it's like a $750,000,000,000 market cap. Right? When you think about, essentially when you're doing acquisitions or mergers, want to do them when your stock, it's $8.00 6,000,000,000. You want to do mergers when you have a really strong valuation because you end up... Steve Case sold AOL when he knew there was no way it was gonna be worth a fraction of that in a matter of months or years. So that's when you sell your company. The problem is no one will buy Tesla for $805,000,000,000 except x AI, right, or SpaceX. And so your idea is so interesting because what he could try to do is say, okay. I... Jazz hands will only last so long. At some point, people start, you know, saying, okay. Enough is enough here, folks. That $800,000,000,000 market cap is gonna come way down. So the idea of taking a large revenue base, which you get from an automobile company, putting on top of it the impression and the valuation of AI with the dataset of x and also maybe some of the gross and and risk and unbelievable coolness of SpaceX, which would... That would be a lot. Maybe it keeps that independent. But I think your idea is really insightful that the way to maintain that ridiculous $800,000,000,000 valuation is to cash it in now, and he'll have... Maintain a huge stake and potentially do kind of one one that's going to point five plus one plus one equals four or five. I think you're right. I think there's gonna be... I think Tesla is going to be folded in to another an AI company merged.
Kara Swisher · 1:11:07
Or an AI company that makes robots.
Scott Galloway · 1:11:09
Yeah. I I just... I I I love that because when you said it, the moment you said it, I thought, oh, that would be really fucking smart from a shareholder perspective.
Kara Swisher · 1:11:18
Yeah. Makes sense. It is also like him. It's very like him. He's hiding in
Scott Galloway · 1:11:22
the bold, and he has control of his board.
Kara Swisher · 1:11:24
Right. Yeah.
Scott Galloway · 1:11:25
He he doesn't care. He'll tell the board this is what we're doing. Yeah. He's not scared of shareholder lawsuits.
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Kara Swisher · 1:11:30
it private then. There's not a lot of revenue in any of these things.
Scott Galloway · 1:11:34
Private. No one will fund it. Yeah. One will finance it.
Kara Swisher · 1:11:37
Lot of revenue. Well, you know, I don't think the Starlink part... I mean, SpaceX is part of it. They they have... They don't... My guess, they don't they don't make that much money. They probably... And they've been hurt themselves, but I think it's... They're very expensive to run that thing. And I I... I'd love to actually see the numbers from that. If someone wants to send them to me, I'd love to see them. I don't think they're wildly profitable by any stretch of the imagination. But... You know?
Scott Galloway · 1:12:03
And finally, Kara, the prediction... The the geopolitical prediction. So Donald Trump is having a huge impact globally, including what leaders are elected or not elected, but it wasn't the impact he thought he was gonna have. In the Canadian elections for prime minister, my prediction is that Mark Carney of the Liberal Party is gonna prevail. And that is after overcoming a 25 deficit coming into the year. And why is the Liberal Party gonna prevail here? Donald Trump, he has so pissed off Canada, and the Conservative Party nominee for prime minister is aligned with Trump and considered a more Trumpian candidate. And boy, has Canada turned off Trump. So in sum, Trump has elected, in my opinion, or will elect, prime minister Mark Carney of the Liberal Party and has swung the Canadian elections 25 points because of how repellent they find Donald Trump. And the Conservative Party has been contaminated by Trump. So he is getting world leaders elected, just not the world leaders that everyone had anticipated or certainly not the ones he had hoped for. In sum, I think the underdog here, Mark Carney is about to be the next prime minister of Canada solely because of the unpopularity of our American president. Do you have a prediction?
— Predictions segment ends —
Kara Swisher · 1:13:33
I don't. I don't. I predict I'm gonna go to White House correspondent dinner parties this weekend.
Scott Galloway · 1:13:37
Oh, I was gonna go, but I'm not in town.
Kara Swisher · 1:13:40
Why not?
Scott Galloway · 1:13:40
I got asked by a friend of yours to be their date, and I was really excited. She's much... She's totally cool. I won't say who it is. But A
Kara Swisher · 1:13:47
friend of mine asked you to
Scott Galloway · 1:13:49
be A friend of ours.
Kara Swisher · 1:13:50
Oh, okay. Oh, yeah. You should've. Oh, I know who it is. You should've come.
Scott Galloway · 1:13:54
Emily Radikowski. Just saying.
Kara Swisher · 1:13:56
It's not Emily. Right? Just saying. There's a bunch. There's... Every every single media comes. Like, Axios is having something, Substack.
Scott Galloway · 1:14:03
Looks like so much fun. Substack. You've been. Right?
Kara Swisher · 1:14:05
The parties are fun. I hate I hate to say it. Parties are don't fun. Go to the event itself ever, but there's, like, NBC's having a party after the French embassy.
Scott Galloway · 1:14:15
Oh, the NBC party.
Kara Swisher · 1:14:17
No. It's fun. It's fun. I'm telling... I love that French embassy. It's so ridiculous. It's so, like, end times kind of partying kind of stuff.
Scott Galloway · 1:14:25
The NBC party. Will David Hasselhoff or or Courtney Cox be there? I'm... I was wrong. I don't wanna go. You've literally said nothing that sounds remotely fun.
Kara Swisher · 1:14:34
Think. Oh, UTA has a really cool party. It's really fun.
Scott Galloway · 1:14:38
Oh, I had that. You just take erythromycin. Oh, wait. I'm sorry. UTA?
Kara Swisher · 1:14:42
No. They're fun. They're fun. They're fun parties. They are indeed fun parties. And and my friend Tammy had it. It has the famous White House correspondent snob brunch. I'm convinced
Scott Galloway · 1:14:49
Tammy's running the CIA. She's
Kara Swisher · 1:14:51
running the CIA.
Scott Galloway · 1:14:52
She's quiet, and then she'll pop up and be like, the the president of Gabon wants to meet with you to talk about a shipping lane deal. And I'm like, what the fuck? Who is this woman? She's great.
Kara Swisher · 1:15:03
She has a famous brunch that's really fun. That's really fun, actually.
Scott Galloway · 1:15:07
Where did she get all her power?
Kara Swisher · 1:15:09
She's She's everywhere. She's like
Scott Galloway · 1:15:11
I couldn't get into... I couldn't get my visa done. Couldn't get my passport. She's like, give me five minutes. And all of a sudden, like, the the ambassador to Britain is calling me and sending me a car with my passport. It's like, who is this woman?
Kara Swisher · 1:15:24
Tammy Huddett is the queen of White House correspondent's weekend. She is.
Scott Galloway · 1:15:28
She's Michael Clayton. She's a total fixer. Seriously.
Kara Swisher · 1:15:32
She's also lovely. May I say she brings the
Scott Galloway · 1:15:34
best nice. Toys. And went to Pitt. Went to the University She of
Kara Swisher · 1:15:38
was in Pittsburgh this weekend. She's the best. We love that Tammy Haddad. Anyway, so I wish you were here. We'd have a good time.
Scott Galloway · 1:15:44
I met Tammy Haddad before I met you. We were doing a conference together. I don't think I'd ever met you, or I'd met you before a podcast, but we went to... I think it was South by Southwest, but I showed up, and this woman came up to me, she was so nice and so on my face. I'm like, who is this very friendly woman? And I said... And I saw I saw... It was so adorable. In the back, it was in a makeup room. There was this little adorable boy asleep on the couch, and I'm like, should probably pregame with Kara. And they go, where is she? And she goes, and then they pointed at the little boy. You were sleeping on the couch. You look like a nine year old boy. It was so loud. I'm like, she can sleep here? I can sleep my... One of my first images of you where you were just on a couch sleeping with hundreds of people around you.
Kara Swisher · 1:16:26
I love to sleep.
Scott Galloway · 1:16:27
Like, grabbing some
Kara Swisher · 1:16:28
a good sleeper.
Scott Galloway · 1:16:29
You're like Winston Churchill.
Kara Swisher · 1:16:30
I can sleep anywhere. It's so true. Anyway, Tammy, that's great. And she's she's she's very tall, and she's got this great shock of white hair. It's... She's fantastic. She's a fantastic lady. Anyway, Tammy, good luck this weekend. I will see you at the party. We wanna hear from you. Send us your questions about business tech or whatever's on your mind. Go to nymag.com/pivot to submit a question for this show, or call 85551 I also were in the Scott and Cara universe this week on Prof G Market. Scott, who's on a tear, spoke with Ryan Peterson, the founder and CEO of Flexport, who was was the replaced someone that he brought in from Amazon. It's a leader in global supply chain management about the impact of tariffs. What a great person to to to tap. Let's listen.
Guest · 1:17:12
If they don't change anything in this 145% duty sticks on China, it'll it'll take out, like, mass bankruptcies. You're talking, like, 80% of small business that buys from China will just die. And millions of employees will go, you know, it's a... Will be unemployed. I mean, it's it's sort of why I'm like, they obviously have to back off the trade. Like, that can't be that they just do that. I don't believe that they're that crazy.
Kara Swisher · 1:17:36
That's a great idea to do an interview there, Scott. That's great.
Scott Galloway · 1:17:38
I love supply chain stuff. I've... I invested... One of my best investments of the last few years was I invested in a company called Zero one hundred, which was supply chain research. I I think I think if you look at every
Kara Swisher · 1:17:48
dull investments. That's where you make your big bucks, isn't it? Dull ish.
Scott Galloway · 1:17:51
Quick lesson. Quick lesson. When you're thinking about how to allocate and invest your most precious assets, your financial capital, and even more precious, your human capital, it's very easy. ROI on the x side of the scale, sex appeal on the on the x axis, it essentially... The sexier the business, the lower the ROI. If someone wants you to invest in a member's club downtown for artists and creatives, join the club. Do not invest. If someone wants you to invest in software as a service for scheduling health care maintenance workers, if it sounds so fucking awful you wouldn't wanna work there, that's where you write a check. Because anything that's sexy is overinvested, which drives down returns. The less sexy, the more return on your invested capital. Also think about that in terms of your career. If if you're going for something sexy, you better get bright green lights that you're in the top 1%, otherwise find something boring, and this is what creates passion, mastery, artisanship, and be able to take care of your kids and your parents.
Kara Swisher · 1:18:46
I love that, Scott. So don't invest in Scott Galloway because he's dead sexy. Hello, ladies. Okay. That's the show. Hello. Thanks for listening to Pivot, and be sure to like and subscribe to our YouTube channel. We'll be back next week. Scott, read us out.
Scott Galloway · 1:19:00
Today's show was produced by Lara Nayman, Zoe Marcus, and Taylor Griffin. Ernie and her Todd engineered this episode. Jim Mackle edited the video. Thanks also to Jubaro, Ms. Severio, and Dan Shalon. Nishat Kerouwat is Vox Media's executive producer podcast. Make sure you subscribe to the show wherever you listen to podcasts. Thanks for listening to Pivot from New York Magazine and Vox Media. You can subscribe to the magazine at nymag.com/pod. We'll be back next week for another breakdown of all things tech and business.
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