Is Boeing a Buy? AI Picks & Shovels (and Scott’s Ketamine Trip) | Prof G Markets

Summary

In this episode of Propy Markets, the hosts discuss the 25% of Robinhood's daily trading volume happening overnight, the potential of Reddit's IPO, and the future of supersonic travel. They also delve into the challenges faced by Boeing, the impact of AI on energy consumption, and investment opportunities in data center infrastructure and power management. The conversation highlights the importance of innovation and efficiency in the rapidly evolving tech landscape.

Takeaways

• 📈 Robinhood's daily trading volume on its platform has a significant 25% share happening overnight, highlighting the active participation of users outside of regular market hours.
• 💡 The founders and investors of Robinhood, including Sequoia Capital, are accused of exploiting behavioral flaws in young men that predispose them to risk-taking and gambling addiction.
• 🎶 The discussion includes a personal account of a ketamine trip experience, emphasizing the emotional and psychological impact it had on the individual, including a renewed sense of clarity and focus on personal relationships.
• 🚀 The conversation touches on the importance of being 'good at drugs,' suggesting that experience with substances can lead to better management of intense emotions and thoughts, both while under the influence and in everyday life.
• 🌟 The positive effects of the ketamine experience are highlighted, such as a deeper appreciation for loved ones and a newfound lack of desire for alcohol, indicating a potential shift in the individual's relationship with substances.
• 🧘 The role of stoicism in managing the intense emotional journey of psychedelic experiences is discussed, emphasizing the need for distance and perspective when confronted with overwhelming thoughts and emotions.
• 💡 The potential for Reddit's IPO is explored, with predictions of a substantial first-day pop due to the platform's high web traffic and its position as a valuable attention-based economy asset.
• 💼 The business model of Reddit is analyzed, suggesting that improvements in its ad stack and management could significantly increase its revenue potential, given its high web traffic.
• 🛫 The aviation industry is discussed, with a focus on the challenges and potential of supersonic travel, including the need for consumer demand and the high costs associated with developing and manufacturing supersonic aircraft.
• 🌍 The impact of Boeing's ongoing crisis on the airline industry is examined, with insights into the potential for other manufacturers to enter the commercial jetliner market and the implications for airline stocks.
• 💡 The energy demands of AI and data centers are discussed, with a focus on the potential investment opportunities in companies that can support the growing computational power needs sustainably.

Q & A

What percentage of daily trading volume on Robinhood happens overnight?

The transcript mentions that 25% of daily trading volume on Robinhood happens overnight.

What is the criticism towards Robinhood and its founders by the speaker?

The speaker accuses Robinhood and its founders, as well as investors like Sequoia Capital, of being mendacious and exploiting a flaw in young men's brains that makes them more risk-aggressive and prone to gambling addiction.

What was the individual's experience with ketamine and how did it affect their perspective on life?

The individual had a ketamine trip in a clinically controlled environment at a place called Kyaa in Austin. They experienced anxiety, intense visuals, and a deep emotional connection with their children. The experience clarified their bond with their children and their appreciation for their wife, but also led to a loss of desire for alcohol.

What is the significance of the skateboard mentioned by the individual in the transcript?

The skateboard represents a gift that brought overwhelming joy and surprise to the individual as a child. It's used as a metaphor for the unexpected joy and fulfillment the individual feels in their relationship with their wife.

What is the role of stoicism in dealing with intense or scary experiences on drugs?

Stoicism is important in such situations as it helps establish distance from thoughts and emotions, allowing individuals to not take them too seriously and understand that they do not represent reality. This mindset can be beneficial in coping with intense experiences on drugs or when sober.

What is the current state of Boeing's market situation?

Boeing is facing a crisis with its 787 Dreamliner and has seen a significant drop in stock value. Despite this, the company's situation may not be as dire as in the past due to the duopoly with Airbus and the long-term nature of the industry.

What are the challenges facing the development of supersonic travel?

The challenges include the high energy consumption and the need for consumers to pay a premium for supersonic travel. Additionally, there must be enough demand to justify the manufacturing of large airplane fleets and the associated costs.

How does the energy consumption of AI and cryptocurrency compare?

The global crypto industry uses as much electricity as the Netherlands annually, while AI's consumption is poised to eclipse that. By 2030, electricity demand at US data centers could triple, using as much power as 40 million homes or the annual energy demand of the UK and Greece combined.

What are some potential investment opportunities related to AI's growing energy consumption?

Investment opportunities include companies that increase the efficiency and reliability of data transfers within AI systems, such as Aera Labs, and companies that provide power management and cooling equipment for data centers, like Verve.

What is the prediction for Reddit's IPO?

The prediction is that Reddit will get a substantial day one pop in its IPO due to its high web traffic ranking and the potential to monetize its attention-based economy more effectively.