00:00 Speaker A
You know, it’s interesting, Steffy, it’s not that it’s not like the company’s getting a pass, but they’re los uh SpaceX losing gobs of money. Open AI uh I imagine is still losing money, same deal with Anthropic. Why isn’t it a big more of a big deal that these companies are losing money. It wasn’t too long ago, a couple years ago, we were really scrutinizing a lot of software companies, tech companies for losing gobs of money and their valuations were penalized. It doesn’t seem to be the case anymore, or at least right now.
00:36 Speaker B
I mean, I think of the the market can think ahead to uh the future and when they could be profitable. I mean, if you’re investing in a private company, you’re that’s what you’re doing. You’re saying, okay, you’ll be profitable by X year, assuming Y growth rates and if it’s believable, then, you know, they then the it’s believe, it’s believed, right? And they get the valuation that they do and the company itself does make money. I mean, I think the acquisition of X brings down their overall revenue, but the core business um was more profitable and I think that the vision along with that is what is getting the pass. Um but we’ll see, right? Like over time. I the market always ends up where it should be. um but I think, you know, the belief sometimes carries uh an advance of that.
01:21 Speaker A
Steve, uh as a seasoned veteran such as yourself, when that SpaceX prospectus dropped and in the days since, how do you tear that apart to assess and understand the company?
01:31 Speaker C
Well, I think Steph brought it up. That thing’s been scrutinized more than anything. I mean, by uh by many market participants. All you have to do is is is listen and watch and hear everything that’s there. But I think what the the point that Steph brought up, especially since there’s such large retail participation, as she mentioned it as vision, it’s a story. It’s a story. And there is a history, you know, with Elon, you know, with stories and his success in some aspects of that. And I think people are just believers. Um, you know, I always said this, it’s it’s very funny. Um, when you look at really engaged retail market participants, they they have a level of optimism that I think is above and beyond a lot of people. Um and so they’re looking for a positive story um and something that they believe in and they want to participate in it. They feel like they’re participating in by investing in that. And I think that’s really powerful. It’s what makes these capital markets so interesting.
02:22 Speaker A
Steve, uh, of course SpaceX really um wants to make the retail investor feel a part of this and that’s of course keeping with I think the DNA of Elon Musk and what he’s tried to do with social media following, you name it. Does that fundamentally change how IPOs come to market? I mean, I can’t tell you how many executives I talk of public companies that um have been public for many many years, they could care less about the retail investor. You know, I’m just going to say it right now. They just do. Uh I firmly disagree with that. But this is I think bringing a new dynamic to light where a lot of these big companies, they need to start paying more attention to the retail investor and start giving a damn about them.