Scott Galloway’s “techie” prophecies for 2023

Scott Galloway has put his phenomenal guessing skills to the test today in a presentation at DLD where he has speculated on the future of the most flashy technology companies in the coming months.

To Scott Galloway, professor at New York University Stern School of Businesshee loves to look at the future of the “techie” industry in his particular crystal ball (where he is able to see what many others can hardly imagine). Galloway put his phenomenal guessing skills to the test today in a talk at DLD where he pondered the future of the hottest tech companies in the coming months.

Zuckerberg’s metaverse will face failure

Galloway has started a presentation by prophesying the (absolutely impeccable) failure of Mark Zuckerberg’s pharaonic project with its focus on the metaverse. “Zuckerberg burns $1 billion a month on his hallucinogenic trip to the metaverse«emphasizes the teacher.

The founder of Facebook “is doomed to fail,” Galloway stressed. He believed that he was going to establish himself as some sort of god of technology, but he has failed. “If you really want to invest in a company, don’t do it in Meta, do it better in Crocs”he joked.

Staff cuts will continue in the “techie” scene (to the joy of investors)

Galloway points out, on the other hand, that the “snipping” started in 2022 by a good number of technology companies will also continue in the year that has just begun. After all, in more and more companies attached to the field of technology (Meta, Alphabet or Pinterest) «personnel costs are growing at a faster rate than revenues, which inevitably puts profitability on the ropes. And the conclusion is simple: expenses must necessarily be cut and this ultimately affects the staff », he points out.

According to the professor, investors are actually happier than Easter with the layoffs coming up in the tech industry because Fewer employees translate to more earnings per share. That is why it portends that Alphabet, Amazon and Meta will register the most profitable quarterly results in history this year.

The unstoppable rise of TikTok in the 2.0 universe

Galloway further predicts that TikTok has a prosperous future ahead of him and he is convinced that ByteDance’s subsidiary will break the magic trillion dollar valuation barrier this year. The figures demonstrate, not in vain, the excellent work of the social network from China, which has needed just five years to reach one billion users (achieving this figure three years faster than Instagram and four years faster than Instagram). Facebook). In addition, TikTok’s usage figures are simply stunning: its users spend a whopping 100 minutes a day on the social network.

Tesla will continue to languish on the stock market

Fixing his gaze on Tesla, the one who was once an absolute star on the stock exchanges, Galloway believes that its stocks will continue to suffer in 2023 and that their value will be cut in half. According to the professor, it is not that Tesla is doing badly and is not billing enough, it is simply that its stock market valuation continues to be excessively high (and is bound, therefore, to decline).

Today the valuation of Tesla is 35 times higher than your profits. In contrast, the value of car manufacturers such as Volkswagen, BMW, Mercedes-Benz and Porsche is only 4-5 times higher than their earnings. Tesla’s competition in the electric car space is increasing, so Tesla’s stock will continue to be orphaned in value, Galloway surmises.

A gold mine called artificial intelligence

Galloway’s forecasts could not miss one of the hottest topics of the moment in the “techie” scene: the artificial intelligence. The professor believes that a technology company from the old continent could benefit (for a change) from the growing strength of this technology: Celonis. This startup, founded in Germany in 2011, develops artificial intelligence software that analyzes business processes and looks for optimization potential.

Although Celonis has not yet gone public, one of its founders has already pointed to a possible IPO, an IPO that Galloway ventures could be the most important in the “techie” industry in 2023 (or failing that in 2024).

Another company directly related to artificial intelligence that will be anointed with a whole plethora of good news in 2023 is OpenAI, the parent of ChatGPT. “In the first five days after its launch, ChatGPT registered one million users. On the other hand, it took Instagram two and a half months to reach one million users, Facebook 10 months, Twitter 24 months and Netflix 41 months”, emphasizes Galloway.

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Scott Galloway’s “techie” prophecies for 2023