Why Chaos Has Become an Economic Strategy — ft. Kyla Scanlon

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Prof G Markets 41 min 4 speakers 5 chapters transcribed
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What is happening with Shein's valuation?

Ed 2:32
Korean shareholders are urging the company to slash its valuation to around $30 billion. That's down significantly from its peak of $100 billion in 2022. According to those familiar with the matter, some shareholders believe the valuation cut is necessary to get the IPO over the finish line. South Korea has temporarily blocked new downloads of DeepSeek over privacy concerns. Regulators said the app will be reinstated on Apple and Google app stores once DeepSeat complies with the country's personal data protection laws. And finally, Argentina's president, Javier Millay, is facing lawsuits and potential impeachment after promoting a meme coin on X. The coin briefly soared to a $4 billion market value only to crash within hours of its launch.
Ed 3:19
The coin's creators are accused of a rug pull scheme where developers launch and promote a token and then cash out as its value peaks. Okay, so let's start with Shein. Shein is down to $30 billion reportedly valuation. The first thing I can tell you about this, Scott Galloway is not gonna be happy. As many of you probably know, Scott is an investor in Shein. I actually don't know how much he invested. I also don't know what the terms were on his investment. I don't know what the valuation was. And we will find out. We'll make sure we ask him when he comes back. What I do know, though, is that the last time Shein was valued, it was worth $66 billion. And the year before that, it was worth $100 billion. So we're now looking at a $30 billion IPO.
Ed 4:04
That is a 70% decline in less than three years. This is not good news for Sheehan. Now, why is this actually happening? We've had a lot of people say that it's market conditions, there's supply chain issues, there's issues with the logistics on the IPO. Maybe that's true. But I think most of this is a distraction from the real issue, which is Donald Trump. And more specifically, Trump's suspension of this tax law that we've talked about known as the de minimis provision.
Unknown Speaker 4:35
American consumers will soon see the effects of President Trump's new tariffs on Chinese goods, especially if they shop online at discount stores like Taimou and Shein.

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