Office Hours: Valuing Etsy’s Stock, Tips for Naming Your Business, and How to Ask for a Promotion or Raise at Work | The Prof G Pod with Scott Galloway

Intro

In this episode of “The Prof G Pod with Scott Galloway,” Scott discusses various topics including the valuation of Etsy’s stock, tips for naming a business, and strategies for asking for a promotion or raise at work.

Main Takeaways

Etsy’s Stock Valuation

• Etsy has a $7 billion market cap with a P ratio of 26.
• Etsy reported $1.7 billion in revenue in 2020, up 111% YoY.
• Consolidated revenue for Q3 2023 was $636 million, a 7% increase YoY.
• Etsy had 1.1 billion in cash at the end of the quarter and repurchased $300 million worth of its common stock.
• Etsy shares are down about 44% year to date and missed analyst estimates for revenue in Q3 2023.

Tips for Naming Your Business

• Naming a business is difficult and should be easy to spell, recognizable, and ideally have a URL available.
• When naming a business, it should have some sort of connotation to the business you’re in.
• Authenticity and heritage are important factors in naming a business, as seen with the success of Red Envelope.
• A name with religious connotations may not be the best choice for a business name.
• Crowdsourcing a name through market research platforms or social media can be a helpful strategy, but legal considerations and availability must be taken into account.
• Naming a business can be a frustrating experience, as many names are already taken.

Strategies for Asking for a Promotion or Raise

• It’s important to establish a relationship with a mentor or boss to gain insight into compensation and salary increases.
• Find out when and where you hear about compensation and salary increases and ask for advice on what you need to do to increase the likelihood of getting promoted.
• Be a good citizen, don’t bring up promotions or raises more than once a year, and be grateful.
• Don’t constantly push for raises and promotions.
• Surprise and delight hardworking employees.
• Build a relationship with your boss for compensation conversations.
• Find out when the compensation window is.
• Seek advice on how to reach your goals.

Summary

Etsy’s Stock Valuation

Etsy, an online marketplace for handmade and vintage goods, has experienced significant growth in revenue. With a market cap of $7 billion and a P ratio of 26, investors should consider the stock’s current value relative to other companies rather than anchoring off of past prices. Although Etsy’s shares are down 44% year to date and missed analyst estimates for revenue in Q3 2023, the company’s strong financial position, including $1.1 billion in cash and repurchasing $300 million worth of its common stock, indicates potential for future growth.

Tips for Naming Your Business

Naming a business is a crucial decision that can impact its success. When choosing a name, it should be easy to spell, recognizable, and ideally have an available URL. Additionally, the name should have some connection or connotation to the business you’re in. Authenticity and heritage can also play a role in creating a memorable and impactful business name. However, it’s important to avoid names with religious connotations that may not resonate with all audiences. Crowdsourcing a name through market research platforms or social media can provide valuable insights, but legal considerations and name availability must be taken into account due to the high likelihood of many names already being taken.

Strategies for Asking for a Promotion or Raise

Gaining insight into compensation and salary increases requires establishing a relationship with a mentor or boss. By understanding when and where you hear about such opportunities, you can seek advice on what actions you need to take to increase your chances of getting promoted. It’s essential to approach these conversations with a mindset of gratitude and not constantly push for raises and promotions. Instead, focus on building a strong relationship with your boss and being a good citizen within the organization. Additionally, finding out when the compensation window is and seeking advice on how to reach your goals can help you navigate the process more effectively.

Conclusion

Valuing Etsy’s stock requires considering the company’s current value relative to its peers. When naming a business, it’s important to choose a name that is easy to spell, recognizable, and relevant to the industry. Strategies for asking for a promotion or raise involve building relationships, seeking advice, and approaching the process with gratitude and patience. By applying these insights, individuals and businesses can make more informed decisions and navigate their respective journeys more effectively.