Showing posts with label investor. Show all posts
Showing posts with label investor. Show all posts

2019-07-06

Tech Review 1) Why Jony Ive Chose To Leave Apple, 2) Big Tech & Profits

graphic "Tech Review" ©2017 DomainMondo.com
Tech Review (TR 2019-07-06)--Domain Mondo's weekly review of tech investing news: Features • 1) Why Jony Ive Chose To Leave Apple, 2) Big Tech: Do Profits Really Matter? 3) Investing: The Week & Investor NotesChina & Huawei, Eurozone Japanification, US Pension Crisis & Federal Debt, 4) ICYMI Tech News: WTF Apple? Amazon, Broadcom, Antitrust, Google, and more.
UPDATE Deutsche Bank (NYSE: DBbites the bulletradical transformationnew leadershipcuts 18,000 jobs. 
1) Why Jony Ive Chose To Leave Apple

Jony Ive will leave Apple later this year to start a new venture of his own, called LoveFrom, with Apple as his first client. No one will be taking Jony Ive's title, Chief Design Officer, a position at the center of 20 years of product development at Apple, when he leaves, says the FT.com's technology correspondent Tim Bradshaw, who talks about his exclusive interview with Jony Ive in the video above published June 28, 2019.
"To create something that's genuinely new, you have to start again and I think with great intent, you disconnect from the past."--Jony Ive
Editor's note:  Why did Jony Ive choose to leave Apple? He simply wanted to do something new.

See also: Apple Chief Executive Tim Cook on Monday fiercely disputed a WSJ report about the departure of Jony Ive and the company's ability to uphold its commitment to innovative design.

2) Big Tech: do profits really matter?

Why are loss-making tech companies still attracting investors who are willing to wait for companies to turn a profit? FT.com video published July 1, 2019.

Note also re: fracking technology: “I'm not aware of another case of a disruptive technological change that has done so much harm to the industry that created the change ... While hundreds of billions of dollars of benefits have accrued to hundreds of millions of people, the amount of shareholder value destruction registers in the hundreds of billions of dollars ... The industry is self-destructive.”--Steve Schlotterbeck, former chief executive of EQT, a shale gas giant, at a petrochemicals conference in Pittsburgh. Editor's note: and this doesn't even begin to address  fracking's health and environmental issues.

3) Investing
graphic: "INVESTING"  ©2017 DomainMondo.com
The Week: NASDAQ Composite +1.9% | S&P 500 Index +1.7% | DJIA +1.2%
Stocks finished slightly lower on Friday, backing away from all-time highs hit earlier this week, after a better-than-expected employment report in June partially rolled back investors' expectations for multiple rate cuts this year.
I Just Hope the Fed Doesn’t See This Jobs Report--wolfstreet.com. U.S. nonfarm payrolls rose 224,000 in June, well above market expectations of 165,000, according to the Labor Department. The unemployment rate edged higher to 3.7% (300,000 people entered the labor force looking for work and therefore counted as unemployed), but was still near 50-year lows. Wage growth was 3.1% year over year.
Goldman Sachs' explanation on why there is now a "bull market in almost everything"--"monetary policy" remains the main driver of risk appetite and expectations are now very bullish.

Global hedge fund liquidations exceeded launches for the third consecutive quarter as managers faced a tough capital-raising environment. About 213 funds closed in the first three months of this year, compared with 136 that opened--bloomberg.com. Editor's note: why pay the high fees?
Investor Notes: 
China: "The Huawei battle reflects a fundamental geostrategic shift in Washington. For decades, the U.S. foreign policy establishment assumed Beijing would evolve into a cooperative partner in the rules-based, American-led international order that did so much to foster China's boom. That hope has evaporated. Now, the United States sees China as an adversary determined to challenge American leadership in technology and innovation. President Donald Trump has launched a trade war against Beijing and is boosting defense spending. Huawei is cast as a Chinese standard-bearer in that struggle."--Special Report | reuters.com See also:

EU: The Eurozone’s Japanification--with the eurozone economy stuck in a low growth, low inflation and low rates environment, it's really hard not to make 'Japanification' comparisons. If we're honest, the eurozone is probably already in the thick of it, which means rates are likely to remain lower for longer and every new crisis or recession will bring the bloc closer to more Japanification--ing.com. See also French Bond Yields Slide Below Zero, Hit All Time Record Lows and Deutsche Bank's Restructuring Plan To Cost Staggering €5 Billion--zerohedge.com; German prosecutors are escalating a money laundering inquiry involving Deutsche Bank, including planned raids on wealthy former clients, a person with direct knowledge of the matter told reuters.com.
There is the ongoing economic misery across Europe. Most of the economy remains stalled – and there are signs it could get worse ...  I am not anti-European, but I think it’s about to go through a slow implosion. There is an increasing likelihood Europe becomes largely detached and delinked from the US and other Occidental economies, and irrelevant to the growth economies of the Orient. From a trade perspective, I suspect we’d [UK] be better off outside [the European Union]--Bill Blain.
See also  How Does the European Union Work? The EU’s authority has steadily expanded as its members have passed more and more decision-making power to the union--cfr.org. New leaders of the EU / ECB (nominees still need to be debated and ratified by the European Parliament):
  • Ursula von der Leyen, 60, Germany: European Commission President;
  • Charles Michel, 43, Belgium: President of the European Council;
  • Josep Borrell, 72, Spain: EU High Representative (foreign policy);
  • Christine Lagarde, 63, France: European Central Bank President.

U.S. Under the Radar: Pension Crisis Deepens in U.S. as strategies shift, outlooks dim--bloomberg.com. "I can only repeat again and again: There is no solution to the woefully underfunded pensions in Chicago and in Illinois that does not involve benefit cuts subsequent to a 2020 constitutional amendment or municipal bankruptcy.  And the sooner Pritzker and Lightfoot figure that out, the better off we’ll all be."--wirepoints.orgNote alsosoaring federal debt "poses substantial risks for the nation" warns Congressional Budget Office (CBO).

4) ICYMI Tech News:
graphic: "ICYMI Tech News" ©2017 DomainMondo.com
WTF Apple? Apple Moves Mac Pro Production to China--the $6,000 desktop computer had been the company’s only major device assembled in the U.S.--wsj.com. See also Electronics exodus from China--HP and Dell plan to shift up to 30% of notebook production out of China; Microsoft, Google, Amazon, Sony, Nintendo also want to move some production--nikkei.com.

Airbnb is among IPOs investors are anticipating in the second half of 2019--CNBC (video).

Broadcom In Advanced Talks to Acquire Symantec--another software acquisition by CEO Tan?

Antitrust: Retail Industry Leaders Association (RILA) representing Walmart, Target, Best Buy, others writes to FTC (pdf) about tech giant dominance, offering help with antitrust probes, and calls out Amazon and Google. 

Amazon & Product Liability: 3rd U.S. Circuit Court of Appeals (2-1) rules customers can sue Amazon when they buy defective products from its platform, even if Amazon did not make those products.

What's left to monetize? It appears the answer is "very little."--blogspot.com--"Advertising has always monetized consumers' time and attention, what we call engagement today. Big Tech has generated billions of dollars by monetizing other forms of engagement and privately owned capital/assets. Google has monetized web search ... AirBNB has monetized privately owned or leased homes and flats ..."

Early front-runners to regulate Libra are FINMA (Switzerland) and BOE (UK): "The long-run success of Libra critically depends on finding a nation with financial gravitas willing to provide Libra-friendly rules."--seekingalpha.com.

Ireland-based cryptocurrency exchange Bitsane has apparently vanished, taking as many as 246,000 users’ crypto deposits with it.--zerohedge.com.

Personal Tech: Surviving a SIM swap attack | zdnet.com--"Turns out, the attack was likely driven by a Coinbase account I experimented with in early 2018 that was never closed." See also The Motherboard Guide to Not Getting Hacked.

-- John Poole, EditorDomain Mondo

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2019-06-24

Druckenmiller on Macro Analysis of the Market, Trade, and Investing (video)

Stanley Druckenmiller: Macroeconomic Analysis of the Market, Trade and Investing 

Interview and Q&A on June 3, 2019, at the Economic Club of New York, with billionaire investor Stanley Druckenmiller, Chairman & CEO, Duquesne Family Office LLC. Topics covered include current macroeconomic factors and the impact of changes in interest rates, the US-China trade war, and more. Transcript (auto-generated, unedited)(pdf).

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2019-06-20

How Libra Cryptocurrency & Blockchain Network Will Work (video)

Libra: how it's going to work

FT.com's global tech correspondent Tim Bradshaw explains the new cryptocurrency announced by Facebook: "Libra, a new global currency powered by blockchain technology."

Facebook investor on Libra cryptocurrency

Scott Kupor of Silicon Valley VC firm Andreessen Horowitz (a16z.com) joins CNBC's "Closing Bell" to discuss Facebook's new cryptocurrency, June 19, 2019.
"... we are joining the Libra Association as a Founding Member. The Libra Association is a membership organization behind Libra, a new global currency and financial infrastructure built on blockchain technology.  Libra brings together a world-class group of partners, including:
  • Technology companies that know how to create global-scale networks and infrastructure, like Stripe and Facebook.
  • Financial services companies, like PayPal and Visa, that have deep experience in global payments.
  • Platforms, including Spotify, Lyft, and Uber, who know how to build user-friendly and popular applications with millions of users.
  • Crypto-first companies, like Coinbase and Anchorage, that have deep subject matter expertise.
  • NGOs, like Kiva, Mercy Corps and Women’s World Banking, that understand the needs and habits of a wide variety of populations across the globe.
"These organizations can help Libra reach a critical mass of users, businesses and developers, with the goal of mainstreaming crypto adoption ..."--a16z.com
Domain: libra.org (more info on Libra at the link), and Libra white paper.

See also Fed Chair LIVE Jun 19, ECB Draghi Chaos, Facebook $FB Calibra


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2019-06-17

Greycroft's Alan Patricof on Big Tech & Antitrust Concerns (video)

The big tech companies are smothering small start-ups. Minor changes to a platform’s algorithms can harm a business’s traffic overnight.--Alan Patricof, Silicon Valley VC
Greycrofts' Patricof: There are legitimate antitrust concerns surrounding big tech

Washington is taking aim at big tech, and Amazon, Apple, Google, and Facebook could be vulnerable to antitrust actions. Alan Patricof, co-founder and managing partner at Greycroft Ventures (greycroft.com), joins the discussion on CNBC's "Squawk Box." CNBC Television video  above published Jun 6, 2019.

"Let’s face it, the Internet is a utility and so are the corporations who control it .... Technology needs to be regulated."--Alan Patricof.

Alan Patricof, April 10, 2019:
"From my vantage point in the venture capital industry, it is apparent that many start-ups are failing or changing their business models because of their dependence on Amazon, Facebook or Google. The situation has progressed to the point where venture capitalists discount companies that rely on a digital platform to reach their markets."





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2019-06-08

Tech Review | Tech Fade? Apple, Google, Facebook, Amazon

graphic "Tech Review" ©2017 DomainMondo.com
Tech Review (TR 2019-06-08)--Domain Mondo's weekly review of tech investing news: Features • 1) Tech Fade? Apple,Google, Facebook, Amazon, 2) Antitrust & $AAPL, $GOOGL, $FB, $AMZN, 3) Investing: The Week & Investor Notes,  4)ICYMI Tech News: Huawei, Amazon, PlanetScale, #FoodDelivery, and more.

1) Tech Fade? Apple, Google, Facebook, Amazon
Tech Fade: "We just don’t get as excited about tech as we used to"--enthusiasm about startups and embracing new things has been replaced by cynicism.

WWDC19 Keynote June 3, 2019, at 10 a.m. PDT Streamed LIVE:
source: statista.com
Did The Tech Bubble Just Pop: Investors Balk At SoftBank's Attempt To Raise $100 Billion"Something is not quite right with SoftBank."

2) Antitrust & $AAPL, $GOOGL, $FB, $AMZN

CNBC Television video above published Jun 5, 2019: discussion on antitrust and U.S. tech companies with CNBC's Josh Lipton and Joe Kernen, and the Fast Money traders, Pete Najarian, Tim Seymour, Karen Finerman and Guy Adami, and Antitrust Lawyer Gary Reback, Carr & Ferrell, on the government's antitrust case against Google.
  • Google, Amazon, Facebook and Apple, worth nearly $3 trillion combined, reportedly under federal investigation.
  • Google Should Be Afraid. Very Afraid--a new round of antitrust questions can’t go well for the company. The culture has turned against tech since Google skated free in 2013--bloomberg.com.
  • Google has few political allies and a history of complaints, so an antitrust case may move quickly, say experts.
  • FTC and DOJ agree on antitrust oversight of Google and Amazon, putting Amazon under FTC and Google under DOJ.
  • The House Judiciary Committee is launching a bipartisan investigation into whether large tech companies such as Facebook, Google and Amazon are using their vast market power to suppress competition.
  • A possible Apple probe is reportedly linked to the Google probe, and stems from meetings between the DOJ and the FTC.

3) Investing
graphic: "INVESTING"  ©2017 DomainMondo.com
The Week: NASDAQ Composite +3.9%| S&P 500 Index +4.4% | DJIA +4.7%  
U.S. markets' best week of the year--Trump was right about the Fed.
Investor Notes: in the U.S. Q1 turned out much better than what many pundits predicted:
and Despite Tariff Concerns, Analysts Making Smaller Cuts Than Average To EPS Estimates For Q2 | FactSet.com. Also: History Points To A Recovery in US Stocks--DatatrekResearch.com May 31, 2019--"data shows upside ahead despite a rocky May."

EU: The eurozone economy is stumbling and risks to financial stability are rising, says the European Central Bank (ECB). Italy Is Threatening to Repeat the Greek Debt Crisis—But With Higher Stakes | Fortune.comItaly's GDP per capita remains stagnant at the same level as 18 years ago--Is The Sinking Italian Economy Just The Tip Of The Iceberg?--SeekingAlpha.com.

China: Chinese Bank With $105 BN In Assets On Verge Of Collapse. China’s stock market hit by the biggest outflow of foreign capital on record in April and May as trade war with the US and worry about the stability of the RMB weighed on investors, reported the Financial Times. China services PMI Plunges As Output Expectations Hit 7 Year Lows--zerohedge.comAlsoPentagon report slams China for “eroding the values and principles of the rules-based order”--bloomberg.com.

4) ICYMI Tech News:
graphic: "ICYMI Tech News" ©2017 DomainMondo.com
Huawei is selling off its undersea telecom cable business, its first major asset sale since the U.S. Government's accusations against the company. Facebook suspends app pre-installs on Huawei phones.

Amazon says 10 million items are now available for one-day shipping; while Walmart's recently launched 'next-day shipping' has only about 200,000 items available.

Amazon said it would open pop-up shops in the UK to give more than 100 small online businesses an opportunity to sell on the 'high street' for the first time. “Clicks and Mortar” stores will sell homeware, health and beauty, food and drink, and electronics.

Food-Delivery Rivals DoorDash, Grubhub, Uber Eats and Postmates Risk Capital Destruction--a problem in the 'valuations.'

Boeing 737 Max: fatal flaws can be traced to a breakdown late in the plane’s development, when test pilots, engineers and regulators were left in the dark about a change that would ultimately play a role in two crashes--NYTimes.com.

IBM: 5% Yield And Nearing Dividend Aristocrat Status?

Google To Buy Data Analytics Startup Looker for $2.6B.

Personal tech: FCC votes unanimously (pdf) to let carriers block robocalls by default and advances proposed rule for carriers to adopt SHAKEN/STIR caller ID system.

-- John Poole, Editor, Domain Mondo  

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2019-06-01

Tech Review | Kiss Your Car Goodbye, Mobility As A Service (video)

graphic "Tech Review" ©2017 DomainMondo.com
Tech Review (TR 2019-06-01)--Domain Mondo's weekly review of tech investing news: Features • 1) Kiss Your Car Goodbye, Mobility As A Service, 2) The World's Largest Car Manufacturers, 3) Investing: The Week & Investor Notes, 4)ICYMI Tech News: Facebook, IBM, Google, Microsoft, Nvidia, Huawei, and more.

1) Kiss Your Car Goodbye, Mobility As A Service

Drivers are already ditching their cars because of apps like Uber. Imagine what happens when driverless cars hit the roads. Bloomberg QuickTake explains the idea known as “mobility as a service.” Bloomberg.com video above published May 28, 2019. Note also: a generational wave, "millennials show little interest in car ownership."

2) The World's Largest Car Manufacturers May 27, 2019:
source: statista.com
Editor's note: How Many Will Still Exist in 2030? 

Fiat Chrysler Automobiles (FCA) has made an offer (pdf) for a merger with the Renault Group that would create the third largest automobile manufacturer in the world. According to the proposal, the newly formed group would be co-owned by FCA and Renault shareholders at a 50-50 split with a balanced number of seats on the Board of Directors.

3) Investing
graphic: "INVESTING"  ©2017 DomainMondo.com
The Week: NASDAQ Composite -3% | S&P 500 Index -3% | DJIA -3%
Investor Notes:

US: the earnings yield on US stocks as an asset class has further widened its gap to bond yields. If today's low inflation is not transitory, the U.S. stock market multiples may be way too low. "What can drive [bond] yields higher? Inflation, which nobody in the investing universe believes is an actual ‘thing’ anymore," Nomura’s Charlie McElligott wrote last week.

China: US-Traded Chinese Stocks & ADRs Totally Crushed--many by 50% or 60% or more. See also Which Chinese Banks Will Fail Next?

Eurozone: haggling over who will succeed Mario Draghi begins--the process to replace ECB president comes under scrutiny as region faces economic and political turmoil. German Unemployment Explodes Most Since Financial Crisis, Sending Bund Yields Near Record Lows.

GundlachDeutsche Bank "price action looking pretty scary"and Soc Gen "heading straight south yet again"--
UK: May Ends In June--UK Prime Minister Theresa May has been a dismal failure--"She's no Lady Thatcher." Boris Johnson, Conservative Party MP, former UK Secretary of State, and former Mayor of London (2008-2016), likely to succeed Theresa May as Prime Minister.

The Brexit Party's rising star is Annunziata Rees-Mogg, newly elected MEP:
4) ICYMI Tech News:
graphic: "ICYMI Tech News" ©2017 DomainMondo.com
Facebook expects to launch cryptocurrency ‘GlobalCoin’ in Q1 2020, as a stablecoin pegged to a basket of fiat currencies, and is spending significant time with officials from both the US Treasury and the Bank of England. Facebook is also talking with money transfer firms including Western Union, clearly intending to compete with Paypal’s Venmo and Square’s CashApp, and become one of the world’s leading digital wallets.--Ark-Invest.com.

Quantum computing could help companies address problems as huge as supply chains and climate change. IBM, Google, Microsoft, and others are racing to bring the tech from theory to practice.

Nvidia bringing pro-level Quadro RTX GPUs to laptops--the Quadro RTX 5000 series is now available in mobile form. See also: Nvidia unveils its first AI platform for edge devices--Nvidia EGX, compatible with AWS and Azure IoT offerings; launch partners include Cisco, HPE, and Lenovo.

For Uber, autonomous vehicles can't come soon enough--Uber loses $1 billion in quarter as costs grow for drivers, food delivery.

Huawei: court documents, government and industry sources detail decades of Huawei's alleged IP theft, from the science behind 5G to phone accessory designs--channelnews.com.au. The fallout of the US Commerce Department adding Huawei to its “Entity List,” could be profound. President Trump's offhand remarks that Huawei was banned because it is a security threat yet the ban could be lifted as part of a trade deal, makes no sense except as a taunting negotiating ploy. Huawei smartphones rely on ARM-based CPUs and Google’s Android operating system. An export ban on these technologies effectively freezes Huawei’s product roadmap. Huawei will have to find alternatives to ARM-based mobile chips and a non-Google version of Android, a nearly impossible task. Likewise, Huawei’s 5G equipment requires components and intellectual property (IP) from US companies such as Qualcomm, Broadcom, Texas Instruments, and others. Building a full 5G product stack, without access to US tech, is likely impossible.

Rare Earths: China supplies around 80% of world's rare earths, crucial for electronics, but not  effective for retaliation over the Huawei ban--despite the name, rare earths just aren't that rare.

Malinvestment: Tech Unicorns Are Just Like China's "Ghost Cities."

Congratulations to companies in South Korea, Japan, Taiwan, Vietnam and other Southeast Asia countries--"You did nothing, but you are all winners. Don't forget to send a thank you note to Mr. Trump, for all the new jobs he's about to create in your countries."--Likely Winners In The U.S.-China Trade War.

Google to invest 600 million euros in Finland data center. Note also: concerns rise about Google's ~121K temporary and contract workers globally, compared with just ~102K full-time staff.

Japan to limit foreign ownership of firms in its IT, telecom sectors,

Alibaba plans second listing in Hong Kong to raise $20 billion. China's Semiconductor Manufacturing International (SMIC), delists from the NYSE.

IKEA to revamp app--the world’s biggest furniture retailer is shifting its business model away from brick-and-mortar suburban stores towards making shopping easier online.

Disruptive Innovation (smartphones): Digital Camera Sales Dropped 84% Since 2010.

Crypto: up to 86% of total reported cryptocurrency trading volume is likely fake, according to analysis of exchange website visits--theblockcrypto.com,

Amazon interested in buying Boost from T-Mobile, Sprint.

AT&T: CEO Randall Stephenson is "taking on Netflix and Comcast simultaneously. It won't be easy."--a look at AT&T's "grand vision" of transforming into a “modern media” company spanning multiple content networks, distribution channels, and customer data streams--fortune.com. Editor's note: my gut feel is that "it will all end badly." AT&T can't compete with Netflix, Amazon, Disney, et al. Who are they ($T management) kidding?
$T
Apparently, Wall Street is not impressed! The only thing AT&T has is a sweet dividend (for now).

-- John Poole, Editor, Domain Mondo  

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2019-04-22

Vanguard Founder Jack Bogle's Investing Philosophy (video)

Vanguard Founder Jack Bogle's '90s Interview Shows His Investing Philosophy

Vanguard founder Jack Bogle, who died Jan 16, 2019, was famous for making investing accessible to the everyday person through index funds – funds that match a market barometer like the S&P 500. His message was simple: why waste money on expensive fees and commissions for complex funds when market barometers often outperform them? That message remained remarkably consistent throughout his career.

Jack Bogle needed hefty amounts of brainpower and market know-how to put together the first index fund. But for investors wanting to cash in on his idea, it's become pretty easy.

In 1975, the founder of Vanguard Group was able to turn a long-held belief into reality, namely that it was far more profitable to follow the market than fight it. Most mutual fund managers who picked stocks couldn't keep up with basic benchmarks like the S&P 500 Index, much less beat them, he found.

So he turned his thoughts into action, putting together the first fund that simply followed the S&P 500, minus a small management cost that was much cheaper than the active funds of the day. CNBC.com video above published on Jan 17, 2019.

One website (of many) using Bogle's principles: bogleheads.org

See also: 
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2018-12-14

Diane Von Fürstenberg, Founder & Chairman, DVF (video)

Diane Von Fürstenberg, Founder & Chairman, DVF

Stanford Graduate School of Business video above published Nov 12, 2018: “People say I made the dress. Yes, I made the dress, but really, the dress made me. Thanks to this dress, I became more confident. I was sharing my confidence, I was selling my confidence,” Diane Von Fürstenberg, founder of fashion line DVF (domain: dvf.com), told students at this View From The Top event. Her iconic wrap dress became the look for working women in the 1970’s and continues to make a statement.

Born in Brussels and the daughter of a Holocaust survivor, Von Fürstenberg believes in “never being the victim.” Today, Von Fürstenberg supports and awards women entrepreneurs around the world. “When you are successful, two things happen,” she told the audience. “One is that you can pay your bills and the second is that you have a voice. And once that happens, it’s a gift and a privilege to use your voice for those who don’t have a voice.” Von Fürstenberg was interviewed by Tadia James, Stanford GSB MBA ’19.


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2018-12-10

Hotel Industry Beware Disruptors Google and Airbnb (video)

Disrupting the Disruptors

L2inc.com video above published Dec 6, 2018: Hotels should fear Google (google.com) and Airbnb (airbnb.com) the way retailers fear Amazon (amazon.com) says Scott Galloway.

Transcript (auto-generated)
00:00 a loser the hotel industry today we're
00:04  gonna look at one of my favorite
00:06  industries no joke I love hotels I
00:08  traveled to hotels not to cities and
00:11  some would describe me as
00:12  high-maintenance I don't think that's
00:14  true my needs are pretty simple all I
00:15  want is a quiet corner suite on the
00:17  second floor two fire exits triple wash
00:19  hypoallergenic sheets no connecting
00:22  doors with prayer rugs facing the
00:24  nearest Chipotle of course a view of the
00:25  sunset over the Sistine Chapel seven boxes
00:28  of starch saran wrap and a babysitter
00:30  from my therapy monkey here we go loser
00:34  Marriott the world's biggest hotel
00:37  company revealed last week hackers stole
00:39  personal data from over 500 million
00:43  that's right 500 million guests Marriott
00:45  has half a billion guests making it one
00:48  of the largest hacks of a corporation
00:51  following Yahoo's premier hack in 2013
00:54  the news hit Marriott stock heart though
00:57  analysts say it shouldn't impact
00:58  financials for the long-term Marriott
01:01  announced it was their Starwood guest
01:03  reservation database that was hacked and
01:06  that hackers had access since 2014 the
01:10  hotel giant acquired Starwood back in
01:12  2016 one of the key selling points of
01:15  Starwood to Marriott our technology and
01:18  our brands oops this is what's called an
01:21  indemnity reserve account when you
01:23  acquire a company and force them to take
01:25  a certain percentage sometimes between
01:26  10 and 18 percent of the consideration
01:29  put it aside in case goes down
01:32  that's a function of things that weren't
01:34  disclosed before the acquisition there's
01:36  going to be a lot of discussion about
01:37  that indemnity account over the next few
01:40  weeks at Marriott so what else could
01:42  keep hoteliers up at night
01:44  simple Airbnb which in my opinion is the
01:47  most valuable private company in the
01:48  world right now
01:49  we just don't know it yet it's grown
01:51  from being an elephant in the room to a
01:53  clear and present danger
01:55  Airbnb site gets over 40 million monthly
01:57  unique visitors more than hotel Giants
01:59  Marriott and Hilton combined and the app
02:02  is the fourth most popular travel app on
02:04  iTunes trailing only Uber Lyft and Yelp
02:08  leaving hotel apps in the dust this year
02:12  Airbnb has launched two a dish
02:14  channel offensive moves to fortify their
02:15  moat one Airbnb Plus which tags their
02:19  best properties and adds hotel like
02:21  amenities and check-ins putting luxury
02:23  hotels squarely in their crosshairs and
02:26  to Airbnb experiences which has over
02:29  5,000 activities that can be booked on
02:31  the app and the new feature is a good
02:33  move from both a usage and search
02:35  perspective Gartner L2 Research found
02:38  that 50% of Airbnb x' unbranded search
02:41  traffic comes from things to do in New
02:43  York City or things to do in Los Angeles
02:45  or whatever city you're traveling to the
02:48  visibility enables Airbnb to compete for
02:50  traffic usually owned by TripAdvisor and
02:52  news media like CNN Traveler and
02:54  Thrillist don't we love it the disruptor
02:56  is not only disrupting traditional
02:58  industry but disrupting the disruptors
03:00  specifically TripAdvisor Airbnb is
03:02  currently valued at thirty 1 billion
03:04  dollars second only to Uber and is
03:07  expected to pursue an IPO in 2019 look
03:10  for Airbnb to be worth more than uber
03:12  why you and I could start a ride hailing
03:15  app with 30 million dollars creating
03:17  supply and demand in one city however
03:19  Airbnb takes advantage of an
03:21  unbelievable mode and that is they have
03:23  global demand we could not start an
03:25  apartment or an outsourced hotel app
03:28  with local supply because we would need
03:31  to create global demand is the majority
03:33  of the people coming into the city are
03:34  from somewhere else the other threats of
03:36  hotels Google Hotels should fear the
03:39  search engine the way retailers fear
03:41  Amazon their first Advantage search
03:43  ownership after years of serving up text
03:46  ads where Hotel searches Google is now
03:48  leveraging search results to drive
03:49  traffic to their own booking experience
03:52  where they again profit from Google
03:55  hotel ads Gartner L2 Research found
03:57  that the Google hotels tool appears 99%
04:01  of the time for search terms including
04:02  Best Hotel in Chicago and luxury hotel
04:05  in Paris in sum Google and all the
04:07  other tech monopolies have a very simple
04:09  playbook hey we can help you hey we are
04:12  you hey we're here to kill you
04:14  Google's second advantage data Google
04:16  sits on massive amounts of user data
04:18  enabling it to pump out free tools that
04:21  help travelers take advantage of travel
04:23  deals this will continue to draw users
04:24  to their platform over online travel
04:27  agencies
04:28  search platforms and hotel brand sites
04:30  hotels beware Google and Airbnb the
04:34  Genghis Khan of your industry look for
04:36  the hotel industry to shed value to
04:39  search engines and to Airbnb we are on
04:42  the precipice of war against a hotel
04:44  industry ...

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