01:14:03 · Ed Elson
[01:14:03] S4: You said something which I think is really interesting where it's just like Netflix has always wanted to be seen as a tech company, and I think they have been successful in presenting themselves that way up until lately, where it's become clear that actually, no, you're basically, like, very similar to NBCUniversal, very similar to Warner Brothers Discovery, Disney. You're not really a tech company. And I think what this comes down to, they are at this very important fork in the road, which is like, what actually are you? Like, what... Like, are you are you a media company, or are you a tech company? And I think they're struggling because I don't think they know what they are. I don't think they've figured that out. I think that they're sort of dabbling with this idea of let's get into short form. Let's get into having clips and being more of a sort of a... An aggregator of existing generated content, something similar to a YouTube. But then also they're saying, no. We're gonna also spend $20,000,000,000 on on production, and we're gonna have high quality premium content. We're gonna become the sort of the luxury product of streaming. But then also there's... They... They're doing the ads as well, which was a new introduction a couple years ago. So it's it's almost like they haven't figured out what it is that they actually are, and it makes me think of Aswath Damodaran who's like, you know, you're dealing with a bit of an identity crisis as a company right now. And I think for me, what do they have to do? They have to decide what they are. Because currently, Wall Street is not buying this. This idea that, oh, we're both at the same time. We're kind of interested in TVs, but also we're interested in the phones. We're interested in everything altogether. That's not working from from both a cosmetic perspective in terms of the perception, but also from a business business perspective. So in my view, it's like you need to decide. I'm... Honestly don't think that the tech company angle is going to work. I think it's gonna kinda look like old guy wants to be young. Like, oh, we're into the streaming. We're like YouTube. I I I think that that ship has sailed, and it was a mistake. They should have kept up like YouTube.
01:16:12 · Ed Elson, Scott Galloway
They should have invested heavily, but I think they should have done that two or three years ago, which is what we were suggesting two or three years ago. But I think if they try to enter that game now, it's gonna be way too expensive, way too much competition, and it's gonna be... The the the... They're kind of gonna look like the meme, like, how do you do fellow kids? And it's and it's not gonna really work. So I'm starting to think maybe they just need to go all out media company, brand themselves as luxury premium. Maybe that boosts the multiple. Maybe they can charge higher prices. We have the greatest content in the world. It's a shittier business for sure, but it's something that I think that they could pull off. But, again, there is an identity crisis for Netflix, and they have to decide who actually are we. Do you agree? [01:17:00] S0: They can never be a niche premium provider like HBO. They have to be mass. But, yeah, I I I was looking at Netflix as a buy. I'm now thinking there's more pain there, because I think it's gonna be difficult to it's gonna be difficult to do any of this as quickly as the market wants. [01:17:19] S4: They need to figure out the story. If they figure out their story, everyone's gonna be ready to to buy, but they're they're, like, they're in purgatory right now. [01:17:27] S0: Yep. Agreed.
01:17:27 · Scott Galloway, Ed Elson
[01:17:27] S0: Yep. Agreed. [01:17:28] S4: Let's take a look at the week ahead. We'll see earnings from Apple, Palantir, AMD, Pfizer, Novo Nordisk, Uber, Arm, and Qualcomm. We'll also get the employment report for October at the end the week. But, of course, the main event will be the midterms. Scott, any predictions? [01:17:42] S0: Yeah. My prediction is that Palantir beats and the stock falls. Palantir is trading at roughly 50 times sales, 50 times forward sales. In May, Palantir and NVIDIA lost a 120,000,000,000 in market cap the day after beating estimates. And at that multiple, a beat is the minimum. Anything short of a blowout is a sell on this thing at this at this price. I mean, essentially, Palantir is the student who, even if they get an a, the expectation is that they're supposed to get an a plus. I just don't think I don't think they can... I don't think... Market has becomes used to such incredible beats for a company trading at a PE of 16, much less a company trading at a forward price sales of 50 x. In sum, I think some air is gonna come out of Palantir. So the prediction is Palantir beats, and the stock takes a fall. [01:18:41] S4: Okay. My prediction is gonna bore you, but it's that the Democrats take the house and the senate, sweep, blowout, predicted it earlier in the year, but doubling down today. [01:18:51] S0: Your lips to god's ears, my brother. Bring on the blue. Oh my gosh. And to think that we don't believe in the gun show just as inaccurate. Hello, ladies. Daddy's going as Deadpool tonight. I've decided. I've decided.
01:18:51 · Scott Galloway, Ed Elson, S3
[01:18:51] S0: Your lips to god's ears, my brother. Bring on the blue. Oh my gosh. And to think that we don't believe in the gun show just as inaccurate. Hello, ladies. Daddy's going as Deadpool tonight. I've decided. I've decided. [01:19:05] S4: Looking big. Looking big. I'll give you that. [01:19:07] S0: It's all the testosterone I'm taking. [01:19:09] S4: There we go. This episode was produced by Claire Miller and Alison Weiss and engineered by Benjamin Spencer. Our video editor is Jorge Carty. Our research team is Dan Shalon, Kristen O'Donohue, and Mia Silverio. Jake McPherson is our social producer. Drew Burrows is our technical director. And Catherine Dillon is our executive producer. Thank you for listening to Prof G Markets for Prof G Media. If you liked what you heard, give us a follow and tune in tomorrow for a fresh take on the markets. [01:20:11] S3: Support for the show comes from TikTok. There is a scientifically documented correlation between listening to podcasts and curiosity. So since you're here, you probably enjoy discovering new things. One great place to indulge your curiosity is TikTok. Whether it's how to forecast volcanic eruptions, strange phenomena that the James Webb Space Telescope picked up near the beginning of time, or a literal deep dive on the ocean's deepest reefs. TikTok [01:20:41] S0: has [01:20:41] S3: a wealth of fascinating videos just waiting to be discovered. Your next discovery is waiting on TikTok. Learn more at tiktok.com/discovermore.