Office Hours: NVIDIA’s Strengths, Meta’s Virtual Real Estate Opportunities, Proprietary Streaming Content, and Rebranding Government Jobs

Scott shares his thoughts on whether NVIDIA’s stock is a strong long-term investment. He then shares how streaming services might innovate around proprietary content, and answers a question about whether Meta might acquire Decentraland or the Sandbox. Scott also considers how government work could be rebranded to attract young talent. Music: https://www.davidcuttermusic.com / @dcuttermusic Learn more about your ad choices. Visit podcastchoices.com/adchoices

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:01Scott Galloway?

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• 0:48Speaker 01

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• 0:49Speaker 02

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• 1:08Speaker 02

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• 1:12Speaker 01

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• 1:26Scott Galloway?

  Welcome to the Prop G Pod's Office Hours. This is the part of the show where we answer your questions about business, big tech, entrepreneurship, and whatever else is on your mind. If you'd like to submit a question, please visit officehours.profgmedia.com. Again, that's officehours.profgmedia.com. First question, and a reminder, I have not seen or heard these questions.

• 1:49Speaker 03

  Hey, Scott. Kurt here from the Last Frontier up north in Alaska. My question is a broader one. Do you believe that we don't focus enough on companies like Nvidia, who are building foundational tools, capabilities, hardware services around the Omniverse, really as the tool building guide for creating metaverses and linking them potentially? I really think they're a next gen company that's still considered a graphics card manufacturer that needs a lot more focus. So my question is, where do you feel Nvidia goes in the next five to 10 years? And if you don't like to project out that far, quite familiar with that

• 2:31Speaker 03

  from attending classes, then how about the next year? All right. Thanks from Alaska.

• 2:38Scott Galloway?

  Kurt from Northern Alaska. I wish this was live because I want to ask you, how the hell did you end up in Northern Alaska? Are you a frontiers person? Are you, I don't know, you work on an oil pipeline? It's gotta be pretty freaking crazy up there. I think Northern Alaska basically means the North Pole. So I'm just kind of curious, what's going on up there and what's it like? I'm fascinated by Alaska. It's one of the few places I haven't been that I want to go. There's a lot of places I haven't been. I'm not going to piss off people by talking, listing all the countries I have no desire to go to, but Alaska, probably more than any place, at least in the Union, I want to go to the most and I haven't been. Anyways, enough about my travel aspirations. So last quarter Nvidia posted around seven or

• 3:19Scott Galloway?

  eight billion in revenue and that was up, I think, over 50% year on year. The firm does almost 30 billion revenue and something like increased 60% year on year. And the thing that drove that was its gaming business and accounting for a record 12 and a half billion, also up around 50 or 60%. And Nvidia has just this stranglehold. I think they produce four and five chips or four and five of the processing units for discrete graphics chips. And when you think about the growth and how important and how large the gaming industry is. So you have the monopoly that provides the brain for an incredibly big and growing. I mean, there's few things other than

• 4:02Scott Galloway?

  search that are as big and growing as fast as the gaming industry and they're kind of the, I don't know, the intel of that business. They have a market cap of around a half a trillion dollars. I think it's off though. I think they're at about 200, 225 bucks a share, down from around 350.

• 4:20Scott Galloway?

  And I think it's shed about a third of its value, which in this market, a lot of the stocks I hold, my biggest holding is Airbnb, which is off about, what is it off? It's up about a third from its high. And I feel fortunate because a lot of the stuff I track and that I like is off sixty, seventy, eighty percent. The reason I like this company, and I can't speak to the multiples of the valuation. I'm not comfortable making a projection for the next twelve months. I do like this as a long-term hold because it has come off its high. It has to, it appears to have dominant market share. And it's in a category that it just appears like heads they win, tails they win. And that is these, these chips, whether it's video games or the metaverse, are going to continue to play a very important role.

• 5:03Scott Galloway?

  And this company seems to be shooting the lights out in terms of execution. And it's a complicated, difficult sector with huge IP, hugely expensive, I would imagine, manufacturing facilities that require a lag time. You just can't pop up, I would imagine, a facility making this. I bet these things are harder to manufacture than cars. Anyway, so big barriers of entry, their elbows are out. I like this thing a lot. I don't know the multiple on revenues. Um, I'd have to look at it more in terms of valuation. But if you're looking for a stock to put away for five or 10 years, this feels like that kind of stock. Personally, um, my analogy for my personal investing would be crypto. And that is, I'm fascinated by the crypto space. I don't understand it.

• 5:47Scott Galloway?

  So I'm somewhat, if you will, cautiously skeptical on crypto. I think Bitcoin will be enduring because they've managed to create scarcity credibility versus the US dollar, which is really the genius, the kind of finite nature or friction of mining coins. Ethereum seems to be, have real technology. It's the underlying platform for a lot of NFTs. But the rest to me just seems like a lot of hype that could literally go to zero. However, I want some exposure to the space. And so I'm investing in the picks and the shovels of the infrastructure, just as I would describe Nvidia as the picks and the shovels in the infrastructure. I invested in a company called Ledger. That makes the Nano X, which is a hardware wallet. And that's my way of getting exposure to the space.

• 6:28Scott Galloway?

  If you wanted exposure to the metaverse, I'd like some exposure to the metaverse, but I don't buy it. I think the metaverse is kind of already here in different formats, whether it's Twitter or the App Store or Fortnite. But I still would like exposure to the space. So I would invest in the plumbing or the picks and shovels or Nvidia. So long winded way of brother of saying over the short term, I don't know because the company does look expensive, but it warrants that type of valuation because it's an incredible company with a monopoly like share in an industry that's growing and incredible execution. So this feels to me like almost a little bit like Cisco in the nineties where everyone invested because it was the underlying technology. But also keep in mind during the recession

• 7:10Scott Galloway?

  of 2001 or the unwinding of the dot com bubble, Cisco also got taken to the shed. So there's no real safe haven here. But I do like Nvidia. I think it's an interesting long term hold and there's just no getting around it. This is a quality company that probably doesn't get the attention it deserves. As evidenced by the fact that now has a larger market cap, I believe in Facebook. A really interesting question, Kurt from Northern Alaska. I hope you are well and I hope you are living your best life because Northern Alaska. By the way, I used to love the series Northern Exposure. God, I thought that was such a lovely TV program. I love the love story between the two major characters. I thought the characters in general were really interesting. Wonder what's happened to all of them. Anyways, thanks for the call.

• 7:54Scott Galloway?

  Thanks for the question, Kurt from Northern Alaska. Next question.

• 7:58Speaker 05

  Hey Prof G, my name is Jim. I'm 25. I live in Chicago and I work for one of your favorite social media platforms, Twitter. My question is, why wouldn't one of these subscription streaming platforms such as Netflix, Amazon, Apple or Spotify? Or even a social media company such as Facebook, Twitter or Snapchat? Give a Rogan-esque deal to a top YouTube influencer. It seems like a no brainer to give an exclusive rights contract and transfer however many billion viewers Mr. Beast attracts to YouTube to theirs. This would also be a pretty interesting approach to take down the streaming mammoth that is YouTube. Love the show, dog in training.

• 8:35Scott Galloway?

  Jim from Chicago at Twitter, good to be you. Jim, 25, Chicago Twitter. Check, check, check, check. It's good to be you. You're living a good life and I hope you are more self aware than I was at 25 and realize how fortunate you are. And take time every day to just say to yourself. I am incredibly blessed. I am incredibly blessed. Anyways, it's an interesting idea. We might see more and more of this as streaming services try to land new subscribers and attract more of our attention. And that is going vertical and that is capturing your own, having your own proprietary content. The seminal moment for Netflix was when they went from DVD by mail to streaming. But the second big moment was when they dropped the first season of Pass of Cards. You couldn't watch it anywhere else. I think that HBO going into original content was kind of the key gangster move for them.

• 9:20Scott Galloway?

  Roku just picked up for pennies on the dollar, all of the content from Quibi. They're trying to go vertical. So if the question is, do I think different platforms are going to figure out ways to establish proprietary content? Hundred percent. I used to be a whore all over everywhere. I was on Fox. I was on MSNBC. It's funny, I was self-conscious saying I was on Fox. As a progressive, I used to go on Fox all the time. One, I go on with anchors, not networks. So I really like Stuart Barney and I'm a huge fan of Neil Cabuto. I think he's fantastic. And I also think it's important to engage with people who don't share your political beliefs. Maybe you convince some of them or at least modulate some of them. So I used to go on Fox a lot.

• 10:02Scott Galloway?

  I stopped going about nine months ago because I really got very upset about some of the anti-vax rhetoric. And also I felt like they made some coordinated attacks against progressive women. It felt just bottom line mean. But went on MSNBC a lot. Used to go on CNBC a lot. And then CNN has locked me up. Now granted, they paid me money. It sucks to be a grown up, but they have decided there's certain talent. They want proprietary to their network. Fareed Zakaria is not allowed to go on PBS. And I keep sending, I keep getting interesting invitations to go on fun stuff and I'll ping my boss. And I'll say, can I go on this? And she'll be like, nope, no, hell to the no. Anyways, the idea of going vertical across any platform and establishing proprietary content

• 10:44Scott Galloway?

  is something we're going to see a lot more of. And by the way, by the way, my brother at Twitter, you're going to work for someone else, meaning that I think Twitter is going to be acquired in the next 12 to 24 months because of a $24 billion market cap. I believe that what the Gulf War was to CNN, the invasion of Ukraine is going to be to Twitter. I speak to so many people in journalism. What's the first thing they check in the morning? Twitter. You're sitting on top of a shitty business model. You have an incredible platform that has incredible influence and somebody with inflated stock is going to come in and buy that influence.

• 11:16Scott Galloway?

  And that attention and that incredible platform that you and your colleagues have developed. Anyways, thanks for the question. We have one quick break before our final two questions. Stay with us.

• 11:31Scott Galloway?

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• 12:13Scott Galloway?

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• 12:48Scott Galloway?

  Support for the show comes from Vanta. As AI adoption grows, so does your company's security risks and requirements. New frameworks, audits, and vendors keep piling on, but your team isn't getting any bigger. Most compliance tools promise automation, but you're really stuck doing all the work by hand, chasing screenshots, validating controls, and playing catch-up. When audit season comes around again. Vanta works differently. The regentech trust platform is built to scale with you, not slow you down. With over 1,400 automated tests across 400-plus integrations, Vanta collects evidence and monitors your controls year-round, cutting your audit prep by 82%. Plus, you can access the Vanta agent everywhere you work, whether your team is in Vanta every day or living in tools including Claude or Cursor. Want proof?

• 13:33Scott Galloway?

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• 13:54Scott Galloway?

  Support for the show comes from Vanta. As AI adoption grows, so does your company's security risks and requirements. New frameworks, audits, and vendors keep piling on, but your team isn't getting any bigger. Most compliance tools promise automation, but you're really stuck doing all the work by hand, chasing screenshots, validating controls, and playing catch-up when audit season comes around again. Vanta works differently. The regentech trust platform is built to scale with you, not slow you down. With over 1,400 automated tests across 400-plus integrations, Vanta collects evidence and monitors your controls year-round, cutting your audit prep by 82%. Plus, you can access the Vanta agent everywhere you work, whether your team is in Vanta every day or living in tools including Claude or Cursor. Want proof?

• 14:39Scott Galloway?

  Over 16,000 fast-growing companies like Ramp, Rider, and Harvey save time and resources while scaling fast with Vanta. Learn more at vanta.com/profg and get $1,000 off. That's spelled V-A-N-T-A dot com slash prop G for $1,000 off.

• 15:02Scott Galloway?

  Welcome back. Question number three.

• 15:05Speaker 06

  Hey Scott, Yeltsin from Belgium here. What are your thoughts on Facebook trying to save face and using their $5 billion metaverse budget to potentially make a deal and buy Decentraland or Sandbox? Love the show.

• 15:23Scott Galloway?

  Yeltsin from Belgium. That's an odd... Yep, I am Yeltsin from Belgium. You should definitely come to New York and roam around and just meet strange people. I'm Yeltsin from Belgium. It just sounds cool and fun. It sounds like you're a fun guy. I would grab a beer with you. Hey, it's Yeltsin from Belgium. I'm in town. Do you want to grab a beer? Yes, I do. Okay, so as of this past January, Decentraland had a monthly active user base of about 300,000 people and 18,000 daily users. The Sandbox has a monthly active user base of around 30,000. So I'm fascinated by virtual real estate. I'm not entirely sure. It might be because I don't understand the space enough to know

• 16:05Scott Galloway?

  what Facebook would get owning it as opposed to just partnering with them. And because Facebook has a huge platform and everyone's on it, they could begin selling their own real estate. I guess they would buy it just for the technology and expertise to actually create virtual real estate. But for me, virtual real estate is one of those investments that might be worth taking a flyer on. I'm talking a very small part of your portfolio, you know, 1% or 2% if you're younger. But young people don't have a problem paying for digital assets. My son will buy a laser cannon on a video game for 10 bucks. He will buy skins that signal some sort of skill in the game. So I don't see why they wouldn't be willing

• 16:47Scott Galloway?

  to buy something that signals their power or their wealth and hope that there's some speculative attributes because they trust that the underlying platform is going to limit. If Bitcoin can create scarcity credibility, I don't see why one of these virtual real estate companies can. I think, again... Facebook would have kind of a leg up because as untrustworthy as Facebook is if they said we're producing with the central land or sandbox, a thousand beachfront property, virtual lots in this community that offers the following features and they obviously have a lot of features they could they could offer with their incredible programming talent. To me, that seems interesting. I think they're more likely to build than to buy. But having

• 17:31Scott Galloway?

  said that, Facebook is shitty at building. They're really good at buying. Maybe you're right. I don't know. That's an interesting one. I find that virtual real estate is something that might surprise us all, that it might end up being one of the best performing asset classes of 2022. I'm fascinated by it. So anyways, interesting question, honest answer that I don't know. But I like virtual real estate. I think it's an interesting idea. I think people my age don't believe that you could create scarcity value and asset value around a virtual good, not recognizing that it's already happening, especially across the younger generation. And also, the brand of real estate is really powerful. People are under the impression that real estate is just a very good investment. So you take

• 18:12Scott Galloway?

  you take the speculative nature of crypto, you take kind of the fun, cool, sexy Pepsi generation feel of the metaverse, and then you take what feel like fairly pedestrian but conventional truisms of real estate being a good investment. And I think virtual real estate could be a very interesting asset class. Whether it's Facebook buying them, I just don't know. Yeah, it's in from Belgium. Thanks for the question. Apologize for the long-winded answer. A little meandering, a little all over the place with the dog. Wham! Wham! Papa! Papa! Next question.

• 18:47Speaker 07

  Hi, Scott. My name is Chris from Portland, Oregon. I love your shows and all the incredible work you do, and I can't wait to see what you bring to CNN, Plu. Currently, I work as a federal employee. I recently read a stat that said 40% of all federal employees are 55 years old or older, meaning in the next 10 years, we will see a massive wave in retirements in the federal sector. However, as you and many other people have mentioned, federal employment seems to have a toxic reputation in society. Here's my question. How can federal service rebuild its reputation or brand for the millennial and Gen Z crowd? Currently, I'm thirty four years old and the majority of my coworkers are decades older than me. While the federal service can't match the private sector on wages,

• 19:29Speaker 07

  it does provide incredible benefits and protections for employees. But it has become extremely difficult to fill a large portion of the positions in the federal service. How can the public sector improve its brand in society so it can draw the employees needed to fill positions? Thank you for everything that you do.

• 19:48Scott Galloway?

  Well, first off, thank you for everything you do, Chris. I think our fine brothers and sisters who work for the government work for what is the most noble organization, the most productive organization, the organization that has created more good in the history of Western democracy. And that is the good people who work for the US government, whether that's someone who's working at the DMV or figuring out a way to get a check to seniors or someone who works as a social worker or someone who's a mental health counselor for our veterans. I think that one of the most unfortunate things about the United States that started in the eighties was this screed, mostly on the right, that started with Ronald Reagan trying to convince us the government was bad, that somehow these people were not pulling their weight

• 20:33Scott Galloway?

  or the government was the enemy. And then some of the most famous people in the world, the young people look up to, whether it's Peter Thiel or Elon Musk, have this freakishly weird, perverted vision of libertarianism that is, oh, I should never have to pay taxes and government just gets in the way of my awesomeness. No, it doesn't. Government puts people on the moon. Government solves pandemics. Government pushes back on tyrants. If we don't start investing more in government and holding ourselves to some sort of more basic notion that government, we get to decide what it looks like. So if we don't like it, it's our fault. But essentially, you've had huge layoffs at the state and local level. It's not seen as an aspirational job.

• 21:15Scott Galloway?

  You're correct. According to the US Office of Personal Management, more than forty-three percent of federal employees are fifty years plus, while just eight percent are in their twenties. So there's a few things, and some of them aren't that aspirational. I think we should have mandatory retirement. I don't think that someone should be seventy-five, working in the federal government, just kind of cashing a check. And because the federal government has become so fucking woke that you just can't fire anybody. I think we need to hold federal employees more accountable in terms of performance, just as we do in the private sector. And I think a lot of people in the federal government would like that, because the flip side of that is if you're really good, you can accelerate faster. And I think we need to create more opportunities for young people to go into government. I also think we need to stop this greed and kind of level up the aspirational quality of

• 21:58Scott Galloway?

  the federal government and of the incredible opportunities. I propose the very beginning of the novel coronavirus, something called the Corona Corps, where people who weren't ready for college, or wanted a gap year, or gap years, would spend one to three years in a Corps of Volunteers, going around helping people get their vaccinations, helping people figure out a way to stay safe if they're immunocompromised, mental health counseling, handling logistics. But I think the idea of millions of young people, similar to a Peace Corps, but domestically. By the way, there are some organizations that do this. I think AmeriCorps does this, Teach for America. But I think we need more. And one of the reasons is, one of the most dangerous things in our society is the polarization, that

• 22:41Scott Galloway?

  people see each other as red or blue before they see each other as red, white, and blue. And the great legislation of the sixties and the seventies, the Civil Rights Legislation, Voting Rights Acts, we got along, we got shit done, was because people saw each other as Americans first, or our leaders saw each other as Americans first. And that's no longer the case. Get this, about a third of Republicans and about a third of Democrats see the people in the other party as their mortal enemy. That's just ridiculous. That's hopefully something that'll go away with the tyrant, the new tyrant, trying to soldier into Ukraine. I do think for the first time, we're coming together. But I think government is our opportunity, is our connective tissue. And I think the United States citizens have to stop this

• 23:23Scott Galloway?

  bullshit disparagement and screed of US government. It is us, it's the most noble organization in the world, and we need to figure out a way to compensate. Our young employees in the federal government, give them opportunities and not only that, give them something, a brand that they can be proud of, such that the US government and federal employees can command the space they occupy. And that is they do tremendous good for us every day. I'm a huge fan of anything investing around federal employees. Thanks for your good work, Chris. That's all for this episode. Again, if you'd like to submit a question, please submit a voice recording by visiting officehours.prophgmedia.com.

• 24:08Scott Galloway?

  Our producers are Caroline Shager and Drew Burrows. Claire Miller is our associate producer. If you like what you heard, please follow, download and subscribe. Thank you for listening to the Prop G Pod from the Vox Media Podcast Network. We will catch you on Thursday.

• 24:21Speaker 08

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