Great presentation by Scott Galloway on “The Four” – his book on the big tech companies, Amazon, Apple, Facebook and Google. Find his book on Amazon: (The Four: The Hidden DNA of Amazon, Apple, Facebook, and Google). Go checkout and follow their YouTube channel at: https://www.youtube.com/user/l2thinktank/featured
So, under the category of “don’t try this at home”, I own three stocks: Apple, Amazon, and Nike. And I’m about to purchase a fourth. Here at L2, we’ve attempted to suss out the underpinnings of the four horsemen: Apple, Amazon, Facebook and Google. They have great CEOs; visionary capital; they become an operating system for the respective category; they’re seen as good citizens; they’re a bike ride from a major engineering university; they have vertical distribution and several other factors. And we’ve applied those to other companies to try and identify who could be the fifth Horseman, or who could be worth 300 billion dollars plus.
Netflix. By 2020, Netflix revenues are expected to quintuple to 11 billion dollars with a subscriber base of 60 million in the US. Netflix has a real shot of becoming the operating system for the joy and relaxation in our life. Could be worth, in my view, two to three hundred billion dollars. I’m buying Netflix.
The NFL, which for the past decade has remained relatively immune to the death of television, has finally fallen. What a shocker. A bunch of rich old white dudes putting a bunch of young amazing athletes in uniforms and then telling them to crash into each other so they can have Parkinson’s by the time they’re 45. Audiences for NFL games are down 11%. We have seen the beginning of the end.
A loser: again, Yahoo! By the way, I don’t think you can fault Yahoo for complying with the law and helping the government scan emails under court order. What they can be blamed for, is not disclosing what it’s turning out to be the largest hack in history. The 500 million email accounts two years after it happened. If they in fact withheld material information to acquirer, Verizon has every right to demand a reduction in price. And supposedly Verizon is. They’ve asked for a billion-dollar discount. Yahoo goes back into the marketplace. The private equity guys sharpen their pencils and offer at least a billion dollars less. Verizon gets this. Yahoo shareholders and the board decide to take their medicine and do a deal that is a fraction of the value this company commanded 5 to 10 years ago. However, the CEO walks away with a quarter of a billion dollars.
Losers: billionaires who engage in the intergalactic pissing contest. I wanted to say sword fighting with their dicks, but Katherine wouldn’t let me. Anyway, despite President Obama’s most recent plans to take innovation beyond the bounds of Earth’s orbit, we believe space travel is the next big head fake to join 3d printing and virtual reality. In September, Mark Zuckerberg’s $200,000,000 Amos-6 satellite blew up on earth. Richard Branson and Jeff Bezos are betting big on space tourism with commercial space jets. And not to be outdone, Larry Page is stuck on micro satellites. And the biggest little dick: Elon Musk who is trying to colonize Mars. However, what these billionaires don’t realize? In space, no one can hear you scream.