00:00:00
we called it reddit's IPOs is a victory
00:00:02
shares of the company are up 15% at the
00:00:04
time of taping after jumping 48% on the
00:00:06
first trading day Market uh reddit's
00:00:09
market cap is currently over9 billion uh
00:00:12
another thing we called Trump media is a
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meme stock shares the company jumped
00:00:15
over 50% in the first minutes of trading
00:00:17
causing a brief volatility pause Trump
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media is trading at a market cap of
00:00:21
almost 8 billion uh the company made
00:00:24
just $3.4 million in the first 9 months
00:00:26
of
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2023 which is and they lost a ton of
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money they're losing um they're down 39%
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in users it's just a it's a scam of some
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sort it's just a it's a Ponzi SC I don't
00:00:37
know what's the word you would use um so
00:00:39
talk about Reddit first and then uh
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Trump media stock uh we called this the
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Reddit most traffic site in America
00:00:47
that's not owned by alphabet in terrible
00:00:50
monetization of that traffic but at the
00:00:53
same time that represents the
00:00:54
opportunity and uh there's also a ton of
00:00:58
money on the sidelines it just all the
00:00:59
mo lined up I just you could just feel
00:01:02
this thing was going to get a big pop
00:01:03
and also there's this very strange
00:01:04
dynamic in the IPO Market where it now
00:01:07
makes sense for the company to price
00:01:10
below the actual value they could get
00:01:12
such that because here's the thing we're
00:01:15
talking about the fact that it was up
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48% that's it's the only time you have
00:01:19
this branding event to be kind of the
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most successful or one of the most
00:01:22
successful IPOs of the year and people
00:01:24
say well they left money on the table
00:01:26
because they could have priced it higher
00:01:28
when you're talking about a float of 20%
00:01:29
% maybe you lose 2% of the company but
00:01:32
to be one of the most successful IPOs of
00:01:34
the year and set the tone for your
00:01:35
company it's worth the dilution so this
00:01:37
is the Racket and it is a racket the
00:01:40
investment Banks say price it below what
00:01:43
it's worth and it's good branding it
00:01:45
creates nice momentum nice Halo for you
00:01:47
you only give up a little bit of
00:01:48
dilution and we the Investment Bank get
00:01:51
to essentially give free money to our
00:01:52
institutional clients who generate fees
00:01:54
for us now the unfortunate thing is the
00:01:55
average retail investor doesn't get to
00:01:58
participate they have to buy it at 47
00:02:00
bucks even though it priced at 34 I
00:02:03
think so it's a racket it's another
00:02:06
example of a transfer of wealth from
00:02:08
lower middle- income homes to
00:02:10
institutions and rich people or people
00:02:12
with access some people would argue well
00:02:15
Vanguard Blackstone have a lot of money
00:02:17
from Firemen and teachers and they get
00:02:18
to participate but be clear the IPO
00:02:21
Market is an Insider game and it is a
00:02:23
bit of a fixed racket yeah yeah where's
00:02:26
it going to go from here I think they'll
00:02:27
just have to now they'll be on the
00:02:29
basics of what they're business is like
00:02:31
going forward there's only one thing
00:02:32
that matters from this point forward
00:02:34
right now it's right now on its basic
00:02:36
numbers and its growth it's overvalued
00:02:38
if they show any momentum that they are
00:02:40
able to better monetize that Niagara
00:02:44
Falls of traffic the stock will go up
00:02:47
from here if they do not show momentum
00:02:50
around monetization of their traffic
00:02:52
it's going to go way down it's all I can
00:02:54
tell you is in a year the stock will not
00:02:55
be here but GL I would agree I think
00:02:58
they've got it it's going to be in but
00:03:00
it's still a very small it's very snap
00:03:01
chatty it feels very Snapchatting very
00:03:03
great a good product we'll see if they
00:03:05
can look like better than what it is I I
00:03:08
I like the people who run it and it's
00:03:10
still small it's still a very small
00:03:12
social media site but but the the
00:03:14
contrast with SNAP is snap had much
00:03:16
better user interface in my opinion was
00:03:18
probably more
00:03:19
Innovative great better monetization but
00:03:22
didn't have nearly the traffic of Reddit
00:03:26
and I think the market is deciding that
00:03:28
the harder part is to get the traffic
00:03:31
that you can probably figure out the
00:03:33
other stuff because this is trading I
00:03:35
mean this is trading at a rich valuation
00:03:37
now is a segue to True
00:03:39
social okay let's talk about Nvidia
00:03:42
Nvidia is arguably the eye of the storm
00:03:44
for hype round Ai and it's trading at 37
00:03:47
times sales oh my God that's insane
00:03:49
right 37 times sales Reddit is trading
00:03:51
at 11 times so 11 for Reddit digital
00:03:54
media potential huge growth we'll see uh
00:03:57
Nvidia arguably hottest company in the
00:03:59
world ,000 people turn out like like a
00:04:02
Justin Bieber concert or band concert at
00:04:04
the San Jose Stadium to see Jensen hang
00:04:07
speak the financialization the idolatry
00:04:10
of innovators and billionaires anyways
00:04:12
that's trading at 37 time sales truth
00:04:15
social is trading at 1,500 times sales I
00:04:20
mean you want to talk about a company
00:04:22
that is D Jenga or a house of House of
00:04:26
Cards and by the way not Financial
00:04:28
advice I would not get near the thing
00:04:30
because you don't know what will happen
00:04:31
because this is has nothing their
00:04:33
followers are going to do it's all based
00:04:35
on his followers and if they're going to
00:04:36
keep it up they're going to keep handing
00:04:38
him money it's also a very deaf way to
00:04:40
give him money right if he's going to
00:04:41
sell it is to keep it's it's a really
00:04:44
complex way to give him money but he you
00:04:46
know they're trying to it's all Trump
00:04:48
fans and it's going to be Trump uh
00:04:51
donator people who want to donate in a
00:04:52
different way um just to keep it going
00:04:55
and there's all these rumors that he's
00:04:56
getting people to keep it going you know
00:04:58
by buying all you have to buy is just a
00:05:00
little bit to keep this stock in a crazy
00:05:02
Zone you don't have to buy that much um
00:05:05
and and that there's all kinds of games
00:05:07
happening here I think this is an SEC
00:05:09
violation happening in real time right
00:05:11
now and I think it's a shareholder
00:05:12
lawsuit situation and it's a it's a scam
00:05:16
of some sort it's a it's not even a scam
00:05:17
what is it it's a it's a meme stock it's
00:05:19
a meme stock but it's the memest meme
00:05:22
stock of in mem bille is one of the
00:05:24
reporters called it and it just stay
00:05:27
away even shorting it is a very
00:05:29
dangerous situation correct I
00:05:31
mean my advice to anyone here is not to
00:05:34
get near this thing because it's not
00:05:36
trading it's it's just unknown what it's
00:05:38
trading on as far as we know he calls
00:05:41
some someone in the gulf and says you
00:05:44
know I'll make sure that we buy oil from
00:05:46
you just do me a favor come in heavy and
00:05:49
you're right there's a tale of a whip
00:05:50
here a small amount of a small amount of
00:05:52
purchases can send the stock
00:05:54
skyrocketing and you just don't you
00:05:57
don't want to get near this thing right
00:05:58
now I mean AMC and GameStop were
00:06:00
considered kind of the ultimate meme
00:06:01
stocks they're shitty businesses but
00:06:03
they were businesses they were doing
00:06:06
billions in Revenue you could make an
00:06:08
argument for theaters coming back you
00:06:09
can make an argument for GameStop
00:06:11
getting an I don't know download a video
00:06:13
game you you could make an argument good
00:06:14
decent management the guy from chewy
00:06:16
whatever you can make an argument there
00:06:19
this does 3 million in Revenue there's
00:06:21
not even a there really isn't even a
00:06:22
business here this is not a business
00:06:24
this is something else yeah he just has
00:06:26
to call some guy and say buy a million
00:06:27
bucks buy a million bucks here um and
00:06:30
it's it's like cost of doing business
00:06:31
for people if he becomes president
00:06:33
that's really it it's it's a it's a it's
00:06:35
so corrupt it's so crazy corrupt um it's
00:06:38
just going to be very interesting what
00:06:40
happens the board is his son Devin and
00:06:44
then who is it it's another Deon Nunes
00:06:47
his son another they're all his friends
00:06:49
and all Oh Linda McMahon this makes this
00:06:53
makes Tesla's board look like a model of
00:06:55
corporate governance yeah that's true
00:06:57
and they can they can announce we've
00:06:59
decided
00:07:01
his lock perod or eliminate it and he
00:07:03
canes away they will have to discl
00:07:05
that'll be interesting is what happens
00:07:09
to the stock if and when it's disclosed
00:07:12
or we get close to any date where he can
00:07:14
sell because my guess is he's using that
00:07:17
stock and I don't know if he has to
00:07:18
disclose this to
00:07:19
guarantee uh his ability to raise the
00:07:21
175 million he has now but this guy is
00:07:25
going to sell most or all of it because
00:07:27
he's going to look and go there's
00:07:28
nothing here
00:07:30
there he's going to decide he's going to
00:07:31
he knows there's nothing there and then
00:07:34
what happened with the meme stocks is
00:07:36
everyone together they say let's take
00:07:38
over the castle we can do it we can kill
00:07:40
these short Sellers and they do it and
00:07:42
then they look at each other and they
00:07:43
fall asleep and they go I need to get
00:07:46
out of here before there's a rush out
00:07:47
the door that's right the and they're
00:07:49
all looking at each other and there's
00:07:50
only one person they're looking at here
00:07:51
and it's the following when can Donald
00:07:54
Trump sell
00:07:56
MH and when does he sell I I I just
00:07:59
think this is going to be so this is
00:08:01
going to be such a case it's his next
00:08:03
criminal case or his next civil case um
00:08:05
where he's going to be sued for doing
00:08:07
whatever he's doing and there'll be
00:08:08
emails everywhere because they're so
00:08:09
clsh at their
00:08:14
corruption
