00:56:47 · Ed Elson, Scott Galloway
[00:56:47] S4: Nearly a third of the workforce. [00:56:49] S0: Barely even mentioned. Barely even mentioned. The other really frightening thing is I believe NVIDIA has agreed to purchase or participate in the debt offering of Meta. So these deals [00:57:01] S4: There we go. [00:57:01] S0: That's And by the way [00:57:02] S4: It's not good. [00:57:03] S0: Some of that money will be used to, wait for it, be used to buy NVIDIA chips. So NVIDIA is not only selling the picks and the shovels, they're financing the mine, and they own the bank that's loaning the money to finance the mine to buy those shovels. I mean, it is literally the mother of all circular circular deals here. And I used to do this in the nineties. We all kinda knew each other in the valley, and we were... We would oftentimes buy each other's products or make small investments in each other's companies, you know, to try and prop up the whole ecosystem. And when you think about how many companies... If you did an org chart or a chart depicting where NVIDIA has invested, it feels a lot... It feels eerily reminiscent to FTX in their heyday and how Sam Bankman Fried was investing in everything crypto and propping up the entire ecosystem. It feels like NVIDIA is is, in terms of financing and related party transactions and circular deals, the kind of... I would have thought that that would start scaring people. 60,000?
00:57:03 · Scott Galloway, Ed Elson
[00:57:03] S0: Some of that money will be used to, wait for it, be used to buy NVIDIA chips. So NVIDIA is not only selling the picks and the shovels, they're financing the mine, and they own the bank that's loaning the money to finance the mine to buy those shovels. I mean, it is literally the mother of all circular circular deals here. And I used to do this in the nineties. We all kinda knew each other in the valley, and we were... We would oftentimes buy each other's products or make small investments in each other's companies, you know, to try and prop up the whole ecosystem. And when you think about how many companies... If you did an org chart or a chart depicting where NVIDIA has invested, it feels a lot... It feels eerily reminiscent to FTX in their heyday and how Sam Bankman Fried was investing in everything crypto and propping up the entire ecosystem. It feels like NVIDIA is is, in terms of financing and related party transactions and circular deals, the kind of... I would have thought that that would start scaring people. 60,000? [00:58:14] S4: I think it has, which is why the multiple has contracted. And and and, you know, that... That's why I don't think I can buy NVIDIA is for that reason. Like, even though the multiples come down [00:58:26] S0: Don't tell that to Josh Brown.
00:58:27 · Ed Elson
[00:58:27] S4: Yeah. Exactly. You get mad at me. Words with Josh. That's why I can't do it because of that. I mean, this is just classic bubble behavior. And and the FTX comparison, think, is a good one because what was it that that brought FTX down? It was a change in market sentiment. As soon as you leave yourself that exposed and then suddenly the music stops, that's when the problems start to arise. And so, you know, again, it would be different if you were financing all of these operations independently, but that's not what's happening. They're becoming increasingly dependent on fundraising. As you point, if Meta needs NVIDIA to go out and buy its equity or buy its debt, that tells you something about market sentiment and demand, which leaves you a lot more exposed. So that... Yeah. That's the problem. We'll be right back. And for even more markets content, sign up for our newsletter at profgmarkets.com. Support for the show comes from Vanta. When you run security for a company that's scaling fast, the stakes just keep climbing. More compliance frameworks, more vendors, more risk, and a board that wants to see it all in one place. But in actuality, your compliance data is all over the place. Controls in one tool, vendor risk in another, and customer commitments buried in contracts. Your team has to spend more time stitching it together and less time running the program. And every quarter, you're basing decisions on last quarter's data. That's why Vanta connects it all. Its market leading agentic trust platform is built for enterprise scale. With more than 400 integrations and continuous monitoring, Vanta automates evidence collection, surfaces the risks that matter, and organizes your audit around your auditors' requirements. The numbers back it up. Vanta delivers a 526% ROI over three years and pays for itself in three months, and it's trusted by more than 16,000 companies, including Snowflake, Atlassian, and Ramp. Learn more at vanta.com/markets. That's spelled vanta.com/markets.
01:00:42 · Scott Galloway, S5, S6
[01:00:42] S0: Honey, that flu keeping you up? Yeah. I don't got this. You need Nyquil intense flu. [01:00:48] S5: Undo your flu symptoms with Nyquil intense flu, the nighttime sniffling, aching, aching fever, best sleep with the flu medicine. You do got this. Use as directed. Keep out of reach of children. [01:00:56] S6: Are you tired of hearing about business, tech, and finance from the bros? We are the Tiger Sisters, a top business podcast with the Vox Media Podcast Network. Tiger Sisters releases every Monday, and we decode money, power, and love. And who doesn't love all those things? We are the Internet's Wall Street and Silicon Valley big sisters. Tune in every Monday for late night sister talk meets boardroom strategy. Check out Tiger Sisters on YouTube, Spotify, or wherever you get your podcasts. Welcome to the Tiger fam.
01:01:31 · Ed Elson
[01:01:31] S4: We're back with Prof G Markets. Meta is making a move into long form video. Instagram announced new features that will let creators upload videos up to ninety minutes long and bring reels to Apple TV. This puts Instagram in more direct competition with YouTube, but there is one key difference. Unlike YouTube, Instagram won't share its ad revenue with creators. So, Scott, this is just fascinating, especially for us considering we are a podcast that posts our show to YouTube. It's a big part of our business. Meta is essentially saying, do it on our platform. Do it on Instagram. Ninety minute videos, podcasts, vlogs, interviews, all of that all of that kind of media. I don't see a reason why we will not do that. This is not a zero sum game. Our business is built on ads, selling ads, selling impressions. The more impressions we can make, the more influence and the more money we make. That's the way it works for most media businesses today. This to me seems like a good move by Meta that will genuinely cause problems for YouTube and for every other media company? What do you think?
01:02:44 · Scott Galloway
[01:02:44] S0: I think this is big, and this is how one small company is thinking about this. So the rub on this is they're not sharing any revenue. Right? YouTube pays out, I think, about 50% of its revenue to creators. It's worked really well for them. Thus far, I think Instagram and their features has not said they're gonna share any of the revenue. But at the same time, if you're profiting media, what we're gonna do, we're gonna go hard at this because we can embed ads in our content. Right? We can do host readovers as part of the show, and that will, I believe, be in there. And if if we can get another 100, 200, 300,000 views on Instagram features, then we can sell that into our advertisers. Right? Because... So Instagram isn't gonna run ads and then do a revenue split, but I don't see any reason why we wouldn't be able to embed some sort of, you know, some sort of host readovers. The Mark Zuckerberg is the best thief of IP in history, and he's clearly coming for YouTube. And just to give you a sense of the ecosystem, when you're talking about television, 49% of it or half of it is streaming. Cables, 19%. Broadcast is 18%. Others, 14%. And then let's break down the streaming ecosystem. It used to be YouTube, low double digits. Netflix, high single digits. That delta has broadened dramatically. YouTube now sits at 16. Netflix is at eight. Disney's at five. Prime Video at four. Roku, interesting, 3%, which I believe News Corp just purchased. Paramount at 2.3. Tubi at 1.9. Peacock Plus, 1.6. Warner Brothers Discovery, this was shocking to me because this includes HBO, is at 1.4%. It truly is artisanal at this point. And I think Meta is absolutely coming for that 16% that YouTube commands right now. And the reason why we'll do it and go hard at it, at least initially, is that you gotta think that Meta with 3,000,000,000 users is going to game the algorithm and significantly over reward early adopters of features. Right?