Kyle Uhl, CEO of Dominari Securities, speaks with Quartz in the latest installment of the “Smart Investing” video series.
Watch the interview above and check out the transcript below. This transcript of the conversation has been lightly edited for length and clarity.
Andy Mills (morning): 2024 could be a big year for IPOs. What do you think is going on and what are some of the names investors should keep an eye on?
Kyle Uhl (KW): In the past few years, when interest rates were skyrocketing, no one wanted to bring an IPO to market because you had no idea what was going to happen in the next six or 12 months. So people don’t want to put in capital right now. No one knows whether interest rates will go up or down from here. it depends. I don’t think anything will happen between now and the election, so I think it’s a good idea for the big banks like Goldman Sachs, Morgan Stanley, JP Morgan to acquire some of these great unicorn companies and make them There will be an opportunity and an opportunity to unleash and bring it into the world. market. Databricks is a roughly $43 billion company in his AI space, and look out for big companies like Automation Anywhere, which is developing AI for drones. These are really compelling stories that people want to invest in, and it’s much easier to invest in publicly traded companies. And we have the major unicorns in this room, Elon Musk and SpaceX, and in my opinion, I think there’s a pretty good chance he’ll spin out Starlink. And most people don’t even realize that Starlink is actually 60% of SpaceX’s value. So just for Starlink, based on SpaceX, the latest round was $180 billion. right. His IPO for Starlink alone will bring him more than $100 billion. I think people might be interested in that.
morning: Yeah. Would you like to become a Starlink buyer?
keyword: I would. I would be the buyer. SpaceX, I’m a shareholder, as are many of my customers of SpaceX in the civilian market.
read more: Elon Musk’s SpaceX is strengthening ties with U.S. intelligence and defense agencies
AM: Interesting. So you mentioned the Fed. When do you think interest rates will be cut?
keyword: I don’t think they’re going to cut rates before the election. A meeting will be scheduled soon around the time of the convention. And in the weeks before the CPI numbers were released last week, it was thought that the country would go into the election with just one cut. I don’t think they can do that. And with the current problems in the Middle East, people are also a little worried about oil prices, and they don’t want to cut interest rates, but then all of a sudden there’s inflation in the market. I don’t think they’re going to cut rates any time soon. If it were me, I’d probably be more likely to raise rates than cut them, but I don’t think they’ll do that either. And if it does cut or raise rates, it will likely happen after the election. I don’t think we can just maintain the status quo for now.
morning: Well, there’s two wars going on, there’s inflation, there’s a presidential election, there’s a lot going on in the world. Things could get really interesting in the future.
keyword: surely. Yeah.
morning: Well, thanks Kyle.
keyword: thank you.
