What to Buy When the Tech Sector is On Sale — ft. Mark Mahaney | Prof G Markets

About this Video

• Video Title: What to Buy When the Tech Sector is On Sale — ft. Mark Mahaney | Prof G Markets
• Channel: The Prof G Pod – Scott Galloway
• Speakers: Scott Galloway, Mark Mahaney
• Duration: 00:58:09

Introduction

This Prof G Markets episode features Scott Galloway interviewing Mark Mahaney, a senior managing director and head of internet research at Evercore, about the current state of the tech sector and investment opportunities. They discuss various tech companies' performances, the impact of tariffs, the AI race between the US and China, and potential future trends.

Key Takeaways

• The AI Race: The US and China are engaged in a significant AI race, with China publicly declaring self-sufficiency in AI as a national priority. This is leading to increased competition and potential geopolitical implications.
• Tech Stock Valuation: Many high-quality tech companies are currently trading at relatively low price-to-earnings multiples, presenting potential buying opportunities. Amazon and Meta are highlighted as examples.
• Tariffs' Impact: Tariffs imposed on Chinese goods are shifting manufacturing to other Asian countries like India, rather than reshoring jobs to the US. This benefits countries like India but leaves the US without direct economic gains.
• Uber's Potential: Uber is seen as a potentially strong performer due to its robust earnings growth potential, counter-cyclical elements (side hustles during economic slowdowns), and potential integration of robotaxis.
• Netflix and Spotify's Resilience: Netflix and Spotify's strong performance is attributed to their recessionary resistance, pricing power, market share expansion, industry consolidation, and improved margins. They are seen as effectively recreating the cable bundle model.
• Google's Undervaluation: Alphabet (Google) is considered undervalued, despite potential overhangs from the DOJ and AI competition. Its diversified business model and low P/E ratio are cited as positive factors.