Scott Galloway: Wall Street is Wrong About Google and Amazon

Scott Galloway: Wall Street is Wrong About Google and Amazon:

NYU Stern Marketing Professor Scott Galloway presents the week's biggest winners and losers in digital:

Loser: Wall Street analysts, who missed the point on both Google's revenue-per-click news and Amazon's earnings call.

Winner: Workers in the gig economy. A UK ruling considers Uber drivers employees, rather than contractors.

Video above published November 17, 2016, by L2inc.com.

YouTube auto-generated transcript:
0:02 A loser, again: Wall Street analysts, who missed the point on Google's 11% year-on-year decline on revenue per click.
0:09 Analysts are focusing on the fact that search-based ads have a lower value on mobile then on desktop.
0:14 However, what they missed is that Google managed to drop the price of its ads without losing revenue.
0:20 Peter Drucker, the father of modern management, summed it up as "Do not worship at the altar of high margins."
0:25 What does that mean?
0:26 It means any company that wants to compete with Google has to do so now recognizing that Google gets bigger and bigger and keeps lowering their prices.
0:34 A winner: Amazon.
0:35 What did every analyst miss in their over-reaction to Amazon's earnings call?
0:40 When Amazon announces a loss, it means they are winning.
0:44 What happened in Q2 when they announced record earnings?
0:46 That means someone at Amazon f*d up, and they fixed it.
0:50 The Seattle firm has trained investors to replace profits with vision and growth,
0:55 and as a result has an unassailable advantage.
0:59 In 2018, they will become the first trillion dollar market cap company.
1:04 A winner: workers in the gig economy.
1:07 Last week a UK tribunal -
1:08 tribunal is a really f*ing scary word -
1:10 but anyways, a UK tribunal ruled in favor of Uber drivers being regarded as employees versus contractors.
1:17 That makes Uber drivers eligible for benefits and entitled to the national minimum wage.
1:22 We as a society have decided there are going to be winners and losers.
1:26 We've opted for consumers as number one, shareholders a close number two and workers a distant third.
1:31 Sorry about that.
1:33 Where does that leave society?
1:35 With a lot of people at home during the workday who sit on a really nice couch with a very powerful phone and an enormous screen.
1:41 Gee, that sounds like fun.
1:43 Winners: the team here at L2 marking our 100th episode, and the dozens and dozens of fans we have built out here.
1:52 This week does in fact mark our 100th episode.
1:54 Here's a look at the most frequently named winners and losers.
1:57 The list illustrates where we think the digital economy is headed, led by companies that deftly use technology to refine their product with every user interaction.
2:05 The losers? Those with their heads stuck in the sand, who still pay for audiences and are not nimble enough to evolve.
2:11 Our best joke in two years? Here are our candidates …


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DISCLAIMER

Does ICANN Exist Primarily to Enrich Insiders and Contractors?

Really, does ICANN exist primarily to enrich its own insiders and contractors? [July 2014 update below]

If you look at the financials for ICANN (pdf) or follow the go-to-guy on ICANN finances, George Kirikos, it is a legitimate question -- for example, why would ICANN pay Rod Beckstrom (former ICANN CEO who left June, 2012) more than $1.6 million dollars (US) over a two-year period ending June 30, 2013? Looks like we need an Occupy ICANN! And these hypocrites have the audacity to act like they are interested in serving the global multistakeholder community -- when it looks like they are more interested in serving themselves! What were they saying about transparency and accountability?

You can follow George on Twitter for all the sordid details: 

Tweets by @GeorgeKirikos

Update: In July 2014, the ICANN Board of Directors raised their own pay (no other entity need approve):

Resources - ICANN: "Resolved (2014.07.30.10), the Board approves: (i) the Towers Watson Recommendation that the offer of compensation to all voting Directors be raised to the equivalent of US$45,000.00 effective 1 August 2014, and that no change be made to the Board Chair compensation which is US$75,000; (ii) offering non-voting Liaisons (except the Governmental Advisory Committee Liaison) compensation at the same level as voting Directors effective 1 August 2014; and (iii) the proposed Bylaws revisions relating to non-voting Board Liaison compensation."

and also that of President CEO Fadi Chehadé - "Resolved (2014.07.30.18):
It is in the best interests of ICANN to extend Fadi Chehadé's Employment Agreement to serve as President and CEO of ICANN through 30 June 2017. It is in the best interests of ICANN to increase Fadi Chehadé's compensation as ICANN's President and CEO, effective 1 July 2014, as follows: (i) a base salary of a fixed amount of US$630,000.00 per year; and (ii) an at-risk component of compensation of up to US$270,000.00 per year based on the President and CEO's achieving the performance goals as agreed by the Board. The extension of Fadi Chehadé's Employment Agreement as ICANN's President and CEO through 30 June 2017, and the increased compensation as referenced above, shall be evidenced by an appropriate amendment to the Agreement already in place between ICANN and Mr. Chehadé, which per Amendment No. 1, was effective 14 September 2012. ICANN's Chairman and its General Counsel are authorized to finalize the Amendment to Fadi Chehadé's Employment Agreement as ICANN's President and CEO based on the general terms set forth above.
Eleven members of the Board voted in favor of Resolution 2014.07.30.18. Five members of the Board were unavailable to vote on the Resolution. ....This is an Organizational Administrative Function that is not subject to public comment."


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