TL;DR
Oculus founder Palmer Luckey’s Anduril seeks a $28 billion valuation for its military tech, echoing the dot-com boom’s hype and raising concerns about another bubble about to burst.
Story
Another day, another Silicon Valley unicorn. Anduril, the brainchild of Oculus founder Palmer Luckey, is reportedly seeking a $28 billion valuation. That’s a lot of zeroes for a company peddling military tech. Color me skeptical.
Luckey, the poster boy for tech bros who never quite grew up, seems to have struck gold twice. First, Facebook overpaid for his VR toy, Oculus. Now, he’s riding the defense industry gravy train, capitalizing on global anxieties. It’s a familiar story: promise the moon, rake in billions, and leave someone else holding the bag when the bubble bursts.
Anduril’s claim to fame? Autonomous drones, AI-powered surveillance, and other toys for the military-industrial complex. They claim their tech will “revolutionize” warfare, but it all sounds eerily reminiscent of the dot-com boom, where promises outweighed reality. Remember Pets.com?
‣ Dot-com boom: A period of rapid growth and speculation in internet-based companies in the late 1990s. It ended with a spectacular crash, wiping out billions in investments.
The parallels are unsettling. A charismatic leader, a hyped-up product, and a sky-high valuation built on little more than hot air. It’s a recipe for disaster, and retail investors will likely be the ones left footing the bill.
Anduril’s valuation hinges on the belief that global tensions will escalate, justifying massive defense spending. But what if the world doesn’t end? What if the bubble bursts, and these overpriced drones become expensive paperweights? History tells us booms inevitably lead to busts. Are you willing to bet your retirement savings on a wet dog-smelling CEO and some unproven flying robots?
‣ Retail investors: Individual investors who buy and sell securities for their own personal accounts, not for institutions.
Remember the 2008 financial crisis? It was fueled by complex financial instruments and a belief that housing prices would rise forever. Sound familiar? Anduril’s valuation seems equally detached from reality. Proceed with extreme caution.
Advice
Don’t fall for hype. Research before investing, especially in companies with inflated valuations and unproven technology.