WisdomTree Cloud Computing Fund

Chamath support ×2 ▼ on 📈 Stock-based comp and Evergreen dilution get repriced E118 · 2023-03-03 ▶ 1:01:25

Can you imagine the totality of stock based comp that's been given out by all these companies since two thousand and fifteen when they were cagering their employee bases by twenty five percent a year? I bet you it's a trillion and a half dollars at least.

Brad Gerstner support ×3 ▼ on 📈 Stock-based comp and Evergreen dilution get repriced E118 · 2023-03-03 ▶ 1:02:36

One hundred percent. This has been the greatest grift in the history of Silicon Valley for sure.

Friedberg support ×2 ▼ on 📈 Stock-based comp and Evergreen dilution get repriced E108 · 2022-12-16 ▶ 58:36

So if you take out the stock-based comp, these guys are actually break even or losing money, roughly.

Chamath support ×2 ▼ on 📈 Stock-based comp and Evergreen dilution get repriced E105 · 2022-11-19 ▶ 1:23:06

Because if you look at these compensation plans, all of these professional stock owners, they complain all the time about stock based comp, right? And these companies have budgets between 2 and 5% a year that they give away.

Chamath support ×2 ▼ on 📈 Stock-based comp and Evergreen dilution get repriced E102 · 2022-10-29 ▶ 59:53

And we're going to dilute the stock 2 or 3% a year. So that's another 20% dilution.

Jason support ×2 ▼ on 📈 Stock-based comp and Evergreen dilution get repriced E98 · 2022-10-01 ▶ 10:08

And those crazy, unrealistic out of school deals are going to be gone. And this means massive consolidation of talent.

Friedberg support ×3 ▼ on 📈 Stock-based comp and Evergreen dilution get repriced E98 · 2022-10-01 ▶ 4:49

And the compensation bands get tighter and the option value gets tighter and the free stuff gets tighter. So, it's the end of an era and I think it's a new world for tech and Silicon Valley.

Chamath support ×2 ▼ on 📈 Stock-based comp and Evergreen dilution get repriced E98 · 2022-10-01 ▶ 13:54

So when you take this big tech put out of the market, you will get true price discovery and you will find out what the real price should be for this kind of an engineer, that kind of a product manager.

Jason support ×2 ▼ on 📈 Stock-based comp and Evergreen dilution get repriced E85 · 2022-06-30 ▶ 1:00:40

So this is one of the things that's broken in Silicon Valley is that the comp in the stock-based comp is not tied to performance. It's like just giving people guaranteed salaries.

Sacks support ×2 ▼ on 📈 Stock-based comp and Evergreen dilution get repriced E85 · 2022-06-30 ▶ 58:07

This stock-based compensation is going to go away, because they're going to get rid of all the high-price engineers. They're going to get rid of a lot of the high-price executives.

Chamath support ×3 ▼ on 📈 Stock-based comp and Evergreen dilution get repriced E85 · 2022-06-30 ▶ 54:21

when people talk about free cash flow, they tout it a lot, tech companies tout it a lot, because you're allowed to add back in stock-based comp as if it didn't exist. ... So when the only source of free cash is stock-based comp, that free cash flow doesn't reflect the company's true profitability. This is what I mean by people play these shell games with these numbers

Friedberg support ×3 ▼ on 📈 Stock-based comp and Evergreen dilution get repriced E85 · 2022-06-30 ▶ 50:54

it seems to me that a lot of the big portfolio managers of big institutional funds are starting to pay really close attention to this quote unquote standard in Silicon Valley that stock based comp expense has become so high and Evergreens have become kind of a standard. ... And I don't think it would be too surprising, number one, to see cash salaries go up. And number two, as a result of that, to see salaries become rationalized in Silicon Valley, where engineers may start to get challenged on the standard 400k per year that everyone's become used to

Jason support ×2 ▼ on 📈 Rising rates de-rate high-multiple growth stocks E68 · 2022-02-19 ▶ 42:00

the compression in SaaS multiples, in the public market valuations, something that we're still working through in the stock market, which has been choppy at best over the last couple of months.

Chamath support ×3 ▼ on 📈 Rising rates de-rate high-multiple growth stocks E66 · 2022-02-05 ▶ 46:39

but also I saw that clearly we were going to go through a period where that high growth tech was going to trade down. So I sold some of that high growth tech ... And what he said was when you see a drawdown, meaning when the markets go down, it'll affect high growth tech first. It ended up touching a bunch of other areas. Second, like biotech. But he said this key thing, which is Big Tech will be the last to crack. But when they do, they are going to get shot.

Sacks support ×2 ▲ on 🤖 SaaS pricing power expands as category winners entrench E64 · 2022-01-22 ▶ 1:05:47

look, I invest in B2B subscription businesses. I hate B2C subscription businesses. And the reason is just the churn rates. ... your cohorts are growing 20% every year instead of shrinking 50%

Sacks support ×2 ▼ on 📈 Rising rates de-rate high-multiple growth stocks E64 · 2022-01-22 ▶ 42:53

We've seen a huge correction in growth stocks. We've seen a huge correction in crypto. Basically, anything long dated as the fear of interest rates increasing has gone up, they've massively corrected.

Friedberg oppose ×2 ▼ on 📈 Rising rates de-rate high-multiple growth stocks E62 · 2022-01-08 ▶ 34:35

there's certainly opportunities within as there is in any market that's moving quickly to find businesses that now are prices, mature, non growth value businesses, and they're profitable and growing. And there's a bunch of those out there now. And that wasn't the case a month ago.

Chamath oppose ×2 ▼ on 📈 Rising rates de-rate high-multiple growth stocks E62 · 2022-01-08 ▶ 30:09

we're probably, to be honest with you, like, actually, like, we've puked it all out for the most part, in my opinion. ... And if you look at all these corrections in the world of computer traded algorithms and ETFs and passive money, and it's all the snapbacks are so fast, you correct 20% and then you whip it back and you go.

Sacks support ×3 ▼ on 📈 Rising rates de-rate high-multiple growth stocks E62 · 2022-01-08 ▶ 27:44

Well, it's a major regression to the mean on public company evaluations in both SaaS, but also more generally. The high growth stocks have corrected more than the indices. So that would imply that there might be more correction to come against the indexes. ... So you could say that if it fully reverts to the mean, we still got like another negative 20% to go.

Sacks support ×2 ▼ on 📈 Rising rates de-rate high-multiple growth stocks E59 · 2021-12-17 ▶ 52:02

Economically, we pumped 10 trillion plus of spending and monetary and QE and all this sort of stuff. ... I think we're about to enter a new phase, which is the correction to the overreaction. And I think we're already in the correction. So the market's been correcting, growth stock's been correcting for the last five or six weeks. ... And I think you'll see a further correction, both political and economic, in 2022

Sacks support ×3 ▼ on 📈 Rising rates de-rate high-multiple growth stocks E58 · 2021-12-11 ▶ 27:20

You went from that environment to all of a sudden an environment of now we're expecting to have rate increases, and that's going to suck the liquidity out of the system.

Chamath support ×3 ▼ on 📈 Rising rates de-rate high-multiple growth stocks E58 · 2021-12-11 ▶ 24:20

all of a sudden inflation changes and the front end of the yield curve goes, and all of a sudden all these assets, when yields go up, prices go down ... That's called de-grossing. ... And we've been going through a very painful process of this de-grossing. Hedge funds are doing it in droves.

Jason support ×2 ▼ on 📈 Rising rates de-rate high-multiple growth stocks E58 · 2021-12-11 ▶ 23:02

We had the price sales ratio of Zoom, in other words, the value of the enterprise versus their actual sales was at 123 It's now at 14.7. Peloton was another one of those at 23, now down to 3x, down 87%. ... it seems like there was a mispricing of certain equities

Jason support ×2 ▼ on 📈 Rising rates de-rate high-multiple growth stocks E57 · 2021-12-04 ▶ 25:56

Chamath, can we then look at this as, hey, the era of we're going to give a lot of credit to companies for, you know, what's going to happen in the next 10 years? ... The 10 year outcome that we saw, Rivian came up, you know, and then many other stocks and obviously crypto falls into this. This idea of giving people a decade of forward-looking credit maybe is going to come back to. ... Let's weigh these and look at earnings or maybe two years of credit.

Friedberg support ×2 ▼ on 📈 Rising rates de-rate high-multiple growth stocks E57 · 2021-12-04 ▶ 33:03

And they can't do that now because interest rates, let's say interest rates climb to three and a half percent. I can go make three and a half percent by putting my money in for a 10-year bond. ... It's a little bit harder to make a bet on a 10-year horizon because interest rates are no longer 0%.