Gurley cites Druckenmiller's analogy that low interest rates drive unlimited speculation with other people's money.
“Drucker Miller just, you know, who's someone that's made a name in macro investing says, if you give, you know, Texas oilman the ability to drill holes with someone else's money, they'll drill as many as you possibly can.”
Gurley states 2020 average IPO was underpriced by 50 percent, a massive cost of capital.
“In 2020, the average IPO was underpriced by 50%. You go to any finance school, they tell you you should care about the cost of capital. They teach you about weighted average cost of capital.”
Gurley estimates zombie unicorns have collectively raised $300 billion in capital.
“Yeah. Seems like they've raised somewhere between 2 and 300,000,000 each. And so you roll all that up, it's 300,000,000,000.”
Gurley says unprecedented capital at every AI project creates uncharted competitive territory.
“now we're in a weird world where the amount of money that gets thrown at every project, I kind of lived through this with Uber Lyft because both companies had billions and billions of dollars”