Gurley explains tech stock selloffs occur because terminal value collapses if AI threatens twenty-year survival.
“And for most of these high-tech companies, the next five years cash flow are a fraction of their actual market cap, which means all the values in the terminal value.”
Gurley says Silicon Valley rushes to price-to-revenue multiples because it's the crudest, least intelligent valuation method.
“I've always said that Silicon Valley has the crudest kind of least intelligent view of valuation. They always rush to price to revenue because it's easy and because quite frankly, it's easier to be optimistic.”
https://x.com/bgurley/status/2083020347457314948
post Gurley argues open models are inevitable in high-stakes software competition, reacting to NVIDIA-Hugging Face acquisition talks at $13B valuation
https://x.com/bgurley/status/2092812868098175408