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Published Jul 24, 2023

Carvana and Corporate Governance, Hollywood vs. Microsoft, and Oddity’s IPO | Prof G Markets

Scott Galloway delves into the successful IPO of beauty AI company Oddity, the ethics of insider trading, Carvana's corporate governance challenges, and the strategic shifts Hollywood needs to address tech giants like Microsoft.
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  • IPO Success

    Oddity, a beauty AI company, recently made a successful public debut, with its stock rising more than 35% on the first day. attributes this success to the company's unique blend of growth and profitability, leveraging AI to match perfect skin tones and convert website visitors into customers 1. He notes that there are few companies like Oddity that can thread the needle of growth and profitability simultaneously 1.

    The stock was up 40% on its IPO, and the day after, it was up another 8%.

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    This strong performance highlights the market's appetite for innovative companies in the beauty sector 2.

       

    Investment Strategies

    Scott shares his approach to investment, emphasizing the importance of holding stocks for the long term. He explains that while there is a temptation to sell after a significant gain, he prefers to hold onto stocks for at least a year to avoid short-term capital gains taxes 3. He believes that patience and time are key to building wealth, often holding onto stocks even when they experience short-term declines 4.

    There's nothing that creates wealth like holding a good company for a decade.

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    Scott also mentions that his strategy sometimes involves writing calls to limit upside but reduce downside risks 3.

       

    AI in Beauty

    Oddity's success is largely due to its innovative use of AI and technology in the beauty sector. The company uses spectral photography and AI to match perfect skin tones, creating a sense of security and loyalty among customers 1. Scott highlights that Oddity's ability to move people from browsing to purchasing through A/B testing and machine learning is a significant factor in its strong margins and growth 1.

    Oddity is one of the few companies that has managed to thread the needle of growth and profitability at the same time.

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    This technological edge sets Oddity apart in a market with few comparable companies, making it a standout success 1.

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