Scott Galloway · 40:30
And what you said before, the people who kept going, there's a reason that venture capital, the people who venture, are on the way. It's in our DNA. You take the biggest risk takers in the world, left Europe, got on a barf barge called a boat for nine weeks, to The US, and then the ones that said, I'm willing to take more risk kept heading west. And I'm not only willing to take more risk, I'm ridiculously fucking hardy. I can survive snakes and scurvy and... Well, they didn't have scurvy, whatever was killing
Kara Swisher · 41:02
them. Scurvy.
Scott Galloway · 41:02
And then I could get past the Rockies in a fucking wagon. Scurvy. The people, the DNA of the people ended up in California is pretty awesome DNA. Or I am going to risk my life and figure out a way to immigrate here because I want to work hard and I want to make I want to make money and send it home. It's it's like goddamn DNA of risk taking, creativity, concern for family, wanting a better life. It's just all of it. It is working. Oh my gosh, you're literally mating like, I don't know, the two hottest, smartest people in the world. It's like, it's literally California is the army of offspring of Giselle and Tom Brady, and then throw in Madeleine Albright for, like, empathy and IQ or something. It's just... It's got the best DNA in the world. Alright. We're pro How does California not survive?
Kara Swisher · 41:46
Questioner.
Scott Galloway · 41:47
Sorry.
Kara Swisher · 41:47
We are we are pro Californian. We think we... You can't... We we can't speak what is right with Cali... You you said it's like an old what's right with America, what's wrong with...
Scott Galloway · 41:57
There's nothing wrong with Cali... There's nothing wrong with California that can't be fixed with what's right with California. Alright. Who... What state? Yeah. What state decided to have had an elected official, an elected official who decided on the steps of City Hall to break the law and marry Kara Swisher and her first wife? What other state would do that? Other state would do that? What other state would say, Kara, we are not going to deny you the same pain and suffering as the rest of us? No, we are not going to. We are not going to deny you
Kara Swisher · 42:29
And the whole get
Scott Galloway · 42:31
married married construct invented by a bunch of dudes who didn't want I'm getting married again. Anyways. Don't get me started on marriage.
Kara Swisher · 42:37
I'm getting married again really soon. Yeah. Know. You'll hear about it.
Scott Galloway · 42:39
I know you are.
Kara Swisher · 42:40
I'm doing the mini wedding. I'm doing
Scott Galloway · 42:42
I'll hear about it. I know I'm
Kara Swisher · 42:43
doing a mini wedding, and then I'll... The big one you'll get invited to, but the... We're doing a mini wedding because we have to. Because this is That
Scott Galloway · 42:49
was the most backhanded insult I've ever had. I can't You're
Kara Swisher · 42:52
It's just like You're
Scott Galloway · 42:53
on the mass one. You're on the big one. You're on the big... Oh, wait. I get to miss the Zoom call with you and a bunch of dogs and and your your kids and their curling irons and their hot girlfriends?
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Kara Swisher · 43:04
Invited to that. Let me just tell you. There'll be no Zooming in this wedding. There'll be no Zooming. There'll be no Zoom wedding for Kara Swisher. Thank you very much.
Scott Galloway · 43:10
Hey. I've had the Russian vaccine. I'm safe.
Kara Swisher · 43:12
Listen to me. You'll come to the you'll come to the good wedding, the one with the with the dancing. Okay?
Scott Galloway · 43:18
I'll bring vodka.
Kara Swisher · 43:19
Alright. Oh god. I'm rethinking my invitation. You have to not embarrass me. Do you understand? You and my mother role. We're gonna put you and my mother at a table. That's what's gonna happen.
Scott Galloway · 43:29
And then you virtue signal by just being just being horrified at me.
Kara Swisher · 43:33
You're horrified. I'm gonna have a table of troublemakers, and you and my mother will be the main Lucky. People together.
Scott Galloway · 43:40
Lucky's a little fashion play. Yeah. Lucky will hit the dance floor. Class up the joint a little bit. Class up the joint a little bit.
Kara Swisher · 43:47
Alright, Scott. One more quick break. We'll be back.
Scott Galloway · 43:50
Doctor Swisher will give me a hard time. He's become like my new dad. I know. He emails me when he thinks I'm not alone.
Kara Swisher · 43:55
I know that. I love it. I love it. My brother's obsessed. He's in California, Spaghetti. Alright, Scott. One more quick break. We'll be back for predictions.
[Ad break]
— Predictions segment begins —
Kara Swisher · 45:36
Okay, Scott. It's prediction time. I want you... I want a really good one. You did well on Apple. There's several we've done well on. There's another one that was
Scott Galloway · 45:44
Mhmm.
Kara Swisher · 45:44
We were right. We were getting credit for. Oh, that people would would would drop pay of people as they moved out of Silicon Valley area. But that was... They were doing that already. I don't feel like that was a prediction, but maybe you do.
Scott Galloway · 45:55
So I'm fascinated by... One, I I'd like to think the immunities are kicking in. I wonder if CFIUS is gonna reject this deal. But more specifically, I think a really interesting dynamic in the public markets. Did you see the Snowflake IPO?
Kara Swisher · 46:09
I did. Tell me talk about it. I think it's really interesting.
Scott Galloway · 46:12
Well, biggest software IPO in history, incredible cloud company. In contrast
Kara Swisher · 46:18
Claim what they used to another storage. Tech company but go ahead.
Scott Galloway · 46:20
Another yeah, basically cloud for databases. Another company that's trying to go public and take advantage of this froth around tech is Palantir. Yeah. And it'll be very interesting if the markets how much sanity has crept into the markets, because everything that Snowflake is 3,400 clients growing 150% a year, incredible path to profitability, great logo or client renewal, great dollar renewal, which are really the two things any business needs to look at, logo renewal and dollar renewal. And we should talk about them more at some point. But it's... It kinda is the best of tech in the web, and I think Palantir is the worst. Seventeen years and $3,500,000,000 spent to build company that does $700,000,000 in revenue and loses $500,000,000 and three of its clients are 30% of the revenue, 120 total clients. Very if you think of it, Snowflake is like Google. You can start small, see if it works, ramp up your spending. Whereas Palantir is like a big ad agency that says you need 3 or $5,000,000 just to get started, and it takes a ton of time. It's really more of a services company. It's more like an Accenture. And if you look at the private markets, I'm fascinated with these secondary exchanges, and I went on to figure out if I could buy some Palantir shares, how much it would be. It's trading at 15 to 20,000,000,000, and most recently, they're making signals that they're going to value it at 10,000,000,000. So Palantir now has negative momentum. And then the really, really scary thing here, Kara, that no one's talking about, that no one's talking about but you and me. So Facebook arguably is a global operating system for the consumer world ex China. And the second most influential person in what has been the most damaging organization of the last fifty years is Peter Thiel. And Peter Thiel is the founder of Palantir, and is also proposing series or Class F shares such that they control, or he controls along with the other co founder Palantir, and their stated mission is to be the operating system of government. So let me ask our consumers and our citizens and our senators and investors, do you think it's a good idea to have Peter Thiel as the second most important person at the operating system for consumer world who wants to be the controlling shareholder for an operating system that figures out the algorithms behind camera surveillance and who gets targeted for FBI scrutiny, it's either like, okay, heads he wins, tails we lose. This company financially is a fucking disaster. They're trying to create distraction by being all secretive and spy versus spy, and we are not like Silicon Valley. Yeah, you're not like Silicon Valley. You haven't learned how to be profitable. And we have Peter Thiel is going to be who wants to be the controlling shareholder and most influential person in Facebook and now the operating system for surveillance. Could go wrong, Kara? What could go wrong?
Kara Swisher · 49:02
So my prediction
Scott Galloway · 49:03
is the markets. I think the markets get it right, similar to the fire door that got slammed shut on WeWork. I fire think door is going to slam shut again on Palantir. It is a shitty business. I mean, a shitty, concentrated service like business that does not have the metrics of a SaaS company, and it's gonna be controlled by an individual who has arguably arguably been the invisible hand behind Facebook. He's been he's been the only one that hasn't left the board, and now he wants to be the controlling shareholder behind the operating system for our
Kara Swisher · 49:37
government. Does. Come on. Talk very quickly about the... Because we're only a little bit time, but the... Of the of the economics of this. You you you focused in on that that this is that this is sort of everyone will not be able to read and understand the... How how it doesn't make money.
Scott Galloway · 49:54
Well, you have a company that's 17 years old that's raised and spent over $3,000,000,000 and can't figure out a way to be profitable. Loses... It loses 60¢ on the dollar. It spent 1,200,000 on seven fifty million in revenues. And it's average, it's got 120 clients, it's got terrible renewal rates. So, and also, I think it's some very bright people there. I think some of the some incredibly bright people, specifically every kid you know that got to level 20 in Dungeons and Dragons is working It's there just an incredibly I think it's got a strong culture. I think they do good work. I think at $700,000,000 in revenues, it's worth what Accenture's worth, which is three to five times revenue. It's worth 3 to $4,000,000,000 And also, I want to be clear, I like that Palantir has decided to do work for the government and said we're not going to do work for foreign adversaries. I like that. But it shouldn't be a company controlled by one That's dangerous. So this is a good company, but already they have negative momentum because they are not growing as fast as other SaaS companies, and they're more they have not figured out a way to get to profitability. And then we have a CEO who claims to be a socialist who's paying himself $15,000,000 a year. Like I said, this company is the Rudy Giuliani of tech, and I think the firewall has been triggered. I think Snowflake is an example of an incredible SaaS company, 3,400 clients, an ability to start up with a low investment, incredibly scalable, built on better technology. Palantir is built on old technology, which quite frankly has a lot of critics, and they won't release the renewal rates in their dollar renewal because they're shitty. A lot of people
Kara Swisher · 51:29
try So to
Scott Galloway · 51:30
try don't like Palantir or the stock? That's the correct question. It's going to be an interesting test. If Palantir gets out and Robinhood traders just go, Oh, it's Palantir. It's got that weirdo Peter Thiel, who's also a crazy genius in terms of investor, and it gets bit up by kids in their basement, think that's going to be another signal that we are in for a massive scary correction. If the markets do what they're supposed to do, I think the markets are going to get a taste of this thing and throw up all over the table and say, No, not here. So it is an interesting test whether the halo of Snowflake brings pulse power It's to up and its supposed to do a direct listing anytime. Supposed to do a direct listing, I think, the next thirty days.
Kara Swisher · 52:11
They should get it out before the election because then suddenly he's less powerful from a finance
Scott Galloway · 52:16
Again, you should be a journalist. That's the right question. That's the right question. And that is the key to being... The biggest asset here is Peter Thiel and his relationships with the administration, and the biggest risk is Peter Thiel and his relationship with the administration. Cause do you think the Democratic administration is going to want to cozy up to Peter Thiel? So think this guy has crossed the line of an effective oligarch that is now so close, and his proximity to Trump has infected him. And I think of a Democrat... Jack Dorsey and Peter Thiel have more of their economic wealth on the line other than Donald Trump, are more invested in Donald Trump and Mark Zuckerberg, more invested in Donald Trump's reelection than any individual.
Kara Swisher · 52:56
That's the real prediction that I just dragged out of you, all those companies. We will talk about it on next show.
Scott Galloway · 53:01
There you go.
Kara Swisher · 53:01
This idea of who's in trouble.
Scott Galloway · 53:03
What do you think? What do you think happens with Palantir? Do you think it gets out? What do think happens?
Kara Swisher · 53:07
I I I look... I go to the economics, Scott. I think it's... It it really is troubling that it can't make money. Like... But that doesn't mean it won't. It doesn't mean that it shouldn't. It's just that others are doing rather well in in an area. So I think they do a lot of hand waving around their secretiveness and this and and their CIA background and their magic Peter Thiel sauce.
Scott Galloway · 53:28
You know what
Kara Swisher · 53:28
I mean? I think they do... There's a lot of handwaiting going on. And by the way, Peter Thiel has had a lot of failures too. Right? He's done very well. Like, let's be clear. He's a brilliant guy. I don't agree with him on a lot of things, but he's a brilliant guy. But there's a lot of handwaiting going on at this company, and so it always make... And it doesn't mean they don't have products that are worthy. But, like, if you can't figure out a way to make money after all this time when all the wind is at your back, including support of this Trump administration, I don't know what. I don't know what. That's how I feel. Thank you.
Scott Galloway · 53:54
Well said. Well said, Kara.
Kara Swisher · 53:55
Thank you.
— Predictions segment ends —
Scott Galloway · 53:56
Today's episode was produced by Rebecca Sinanis. Our sound engineer is Fernando Finete. Erica Anderson is our executive producer. Special thanks to Drew Burrows. If you like what you heard, please download, subscribe wherever you listen to your podcast. Oh my god, Kara. It's happening. It's happening.
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Scott Galloway · 55:29
tomorrow online for details.
