RUSH TRANSCRIPT A small ░░░░░░░░ in that firm We ░░░░░░░░ expecting to learn pricing ░░░░░░░░ tonight and it could ░░░░░░░░ trading tomorrow morning Vonnie ░░░░░░░░ will say on the ░░░░░░░░ the most anticipated ipo ░░░░░░░░ to kick off Arm ░░░░░░░░ start trading on the ░░░░░░░░ tomorrow It is at ░░░░░░░░ top end of the ░░░░░░░░ range or even higher ░░░░░░░░ our next guest is ░░░░░░░░ to avoid arm s ░░░░░░░░ David I know one ░░░░░░░░ the arguments is that ░░░░░░░░ is only selling less ░░░░░░░░ 10 of arm At ░░░░░░░░ same time that might ░░░░░░░░ you think he wants ░░░░░░░░ keep 90 of it ░░░░░░░░ why we should avoid ░░░░░░░░ ipo Arm is a ░░░░░░░░ company makes very valuable ░░░░░░░░ but the evaluation is ░░░░░░░░ Most of it is ░░░░░░░░ because softbank has sold ░░░░░░░░ from itself and increasingly ░░░░░░░░ prices It took the ░░░░░░░░ private at 32 billion ░░░░░░░░ bought shares it sold ░░░░░░░░ to one of its ░░░░░░░░ at 62 4 billion ░░░░░░░░ they tried to sell ░░░░░░░░ to nvidia for 40 ░░░░░░░░ An ipo around 50 ░░░░░░░░ believes they can get ░░░░░░░░ better price selling to ░░░░░░░░ investors and they could ░░░░░░░░ another larger company When ░░░░░░░░ look at the performance ░░░░░░░░ implied by a 50 ░░░░░░░░ valuation you re talking ░░░░░░░░ annual revenue growth for ░░░░░░░░ a decade It s ░░░░░░░░ for sure Vonnie would ░░░░░░░░ say the same thing ░░░░░░░░ nvidia Can these companies ░░░░░░░░ onto their valuations despite ░░░░░░░░ expensive I m thinking ░░░░░░░░ Tesla for example David ░░░░░░░░ is possible in this ░░░░░░░░ There is a correlation ░░░░░░░░ deficit spending and money ░░░░░░░░ As long as that ░░░░░░░░ happening nothing is that ░░░░░░░░ tethered to underlying fundamentals ░░░░░░░░ you do care about ░░░░░░░░ and you have a ░░░░░░░░ duty to manage risk ░░░░░░░░ is too expensive so ░░░░░░░░ nvidia so is Tesla ░░░░░░░░ that mean it won ░░░░░░░░ stop going up Maybe ░░░░░░░░ Are we closer to ░░░░░░░░ end of this cycle ░░░░░░░░ the beginning I would ░░░░░░░░ so Can I tell ░░░░░░░░ when the music is ░░░░░░░░ to stop No But ░░░░░░░░ is helpful to let ░░░░░░░░ understand the level of ░░░░░░░░ they are taking buying ░░░░░░░░ ipo at this price ░░░░░░░░ I m curious about ░░░░░░░░ structure of this deal ░░░░░░░░ we talk about this ░░░░░░░░ that as they come ░░░░░░░░ market your document investors ░░░░░░░░ just customers but investors ░░░░░░░░ apple samsung intel that ░░░░░░░░ going to have some ░░░░░░░░ of stake in this ░░░░░░░░ to some degree or ░░░░░░░░ Is it na ve ░░░░░░░░ assume that could alter ░░░░░░░░ stock David you know ░░░░░░░░ think it might be ░░░░░░░░ Some of these customers ░░░░░░░░ going to be competitors ░░░░░░░░ is building electronic devices ░░░░░░░░ make electronic devices work ░░░░░░░░ is one of the ░░░░░░░░ customers and many of ░░░░░░░░ s largest customers are ░░░░░░░░ because arm is not ░░░░░░░░ every bit of the ░░░░░░░░ and the processors going ░░░░░░░░ a phone for example ░░░░░░░░ likes it when they ░░░░░░░░ their own because they ░░░░░░░░ control over everything There ░░░░░░░░ a version of the ░░░░░░░░ where arm this is ░░░░░░░░ lot of marketer because ░░░░░░░░ build more of their ░░░░░░░░ chips on their own ░░░░░░░░ that is certainly the ░░░░░░░░ and artists with outsized ░░░░░░░░ to China At the ░░░░░░░░ of the day there ░░░░░░░░ the narrative that arm ░░░░░░░░ its executives and softbank ░░░░░░░░ spend about this company ░░░░░░░░ future and the future ░░░░░░░░ AI Whether you buy ░░░░░░░░ it or not do ░░░░░░░░ think they can make ░░░░░░░░ case to investors David ░░░░░░░░ know I m a ░░░░░░░░ things have happened They ░░░░░░░░ taking we work public ░░░░░░░░ that failed but they ░░░░░░░░ it public later They ░░░░░░░░ made a lot of ░░░░░░░░ and they pushed a ░░░░░░░░ of things across the ░░░░░░░░ line that should have ░░░░░░░░ across That shouldn t ░░░░░░░░ gotten across To say ░░░░░░░░ couldn t have been ░░░░░░░░ be na ve I ░░░░░░░░ people understand how much ░░░░░░░░ they are taking they ░░░░░░░░ anywhere close to the ░░░░░░░░ ipo price Vonnie how ░░░░░░░░ are you about the ░░░░░░░░ that if we don ░░░░░░░░ seeds perform well and ░░░░░░░░ see a drop tomorrow ░░░░░░░░ after it frustrating that ░░░░░░░░ could be the beginning ░░░░░░░░ the end of the ░░░░░░░░ bubble if it is ░░░░░░░░ bubble David anything bubble ░░░░░░░░ rather than later is ░░░░░░░░ good thing What happens ░░░░░░░░ bubbles is too much ░░░░░░░░ society s capital goes ░░░░░░░░ the hands of a ░░░░░░░░ people as opposed to ░░░░░░░░ into companies that will ░░░░░░░░ turn create value When ░░░░░░░░ say going into the ░░░░░░░░ of to few people ░░░░░░░░ m talking bankers and ░░░░░░░░ making way too much ░░░░░░░░ and a selling of ░░░░░░░░ or company at an ░░░░░░░░ price Just like if ░░░░░░░░ go to a restaurant ░░░░░░░░ you pay 1000 times ░░░░░░░░ much as you pay ░░░░░░░░ steak that will make ░░░░░░░░ owner and weight are ░░░░░░░░ wealthy but you will ░░░░░░░░ out Same way to ░░░░░░░░ about stocks If this ░░░░░░░░ some levity to the ░░░░░░░░ bubble that s a ░░░░░░░░ thing because we don ░░░░░░░░ really want people throwing ░░░░░░░░ money after bad into ░░░░░░░░ that are overly value ░░░░░░░░ that capital could serve ░░░░░░░░ better in other places ░░░░░░░░ we should know soon ░░░░░░░░ Thank you for joining ░░░░░░░░ today David traynor new ░░░░░░░░ s founder and CEO ░░░░░░░░ of Moderna are getting