David Rosenthal: belief

Transcript context

…Yup. Alright. Grading. The way that we grade these IPOs is rather than issuing a grade, we discuss what a few years from now an A+ would look like versus say, a C or D or an F. David, I’ll go first. I think an A+ looks like cracking international monetization. I think this company can continue to grow, to become a $20, $30 billion market cap company over time if they can figure out how to continue growth internationally and how to monetize internationally like they do domestically. I don’t think it’s a crazy playbook to do that, but I don’t think there’s a bigger success path than that. It’s funny. I was going to say, the A+ to me is they take this—yeah, I think that’s an A, that’s like an A-. The A+ is they take all these money they just raised in the IPO and they have some vision that they are keeping secret for now and Ben isn’t telling anyone yet about how they’re going to expand the market here and they use this resources whether through acquisition or investment internally to do that. That would be like, “Yes,” that takes them to multi-hundred billion market cap company. I have no idea what that vision would be so, I think that’s hard. Otherwise, the sooner you describe is super solid A- to A. There’s a possibility that they won’t be able to monetize internationally like they can with the US or even that people start churning off of them because Instagram manages to launch something that sort of leverages their really close relationship with users to get them to start using a Pinterest like experience and Facebook is a total shark at figuring out whether they have something there or not, and ruling it out broadly. My F there would be if one, they can’t monetize internationally or two, they get their legs cut out by Facebook.…

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