Video above published Feb 16, 2017, by L2inc.com: NYU Stern marketing professor Scott Galloway on this week's digital Losers and Winners:
1. Loser: Snap (snapchat). Despite the hype around their upcoming IPO, we still think the company is a loser.
2. Winner: Amazon, which actually makes more on ad sales than Snap and is also growing its fulfillment business.
3. Winner: Tinder. With nearly 2 million paying subscribers, the app has convinced millennials not only that they need to use an app to find love, but also that they have to pay for it.
4. Loser: Virtual reality. Just three years after buying Oculus, Facebook is closing many of its pop-up stores due to poor performance.
Principal domains | stock symbols of companies referenced above:
- Snap.com, snapchat.com, spectacles.com | SNAP (IPO pending)
- Amazon.com | AMZN
- GoTinder.com, Tinder.com | IAC (Tinder is majority-owned by IAC/InterActiveCorp)
- Oculus.com, Facebook.com | FB
0:00 a loser snap this IPO is generated a lot
0:05 of hype but we stand by our original
0:06 prediction that snap is a loser and will
0:09 ring the bell at the top of the social
0:10 media market the company lost 373
0:14 million in 2015 and over a half a
0:17 billion dollars in 2016 meaning that its
0:20 losses exceed its top-line revenues its
0:24 IPO filing warrant snap may quote never
0:27 achieve profitability snaps biggest
0:29 problem relying too much on the genius
0:31 of evan spiegel who shows up an Italian
0:33 bow by the way you're on the cover of
0:35 vogue or end up in jcrew ads it's a
0:37 negative leading indicator that says
0:40 your ceo has his or her priorities all
0:42 f*cked up in addition when facebook
0:45 launched Instagram stories snaps growth
0:48 rate decelerator it
0:50 this is the top of the market this is
0:52 the frenzy and we believe that snap is a
0:55 loser who is winning the media race
0:58 amazon believe it or not even the
1:00 everything store is beating snap-on ad
1:03 sales revenue amazon other revenue
1:05 consisting mostly of AD sales brought in
1:08 1.3 billion in 2016 three times more
1:11 than snap
1:13 amazon is also building a fulfillment
1:15 business with a model similar to amazon
1:17 cloud computing business
1:18 AWS still dressed space to other
1:21 retailers squarely going after UPS and
1:23 FedEx with not innovated and have also
1:26 raised prices a winner tender the most
1:28 downloaded dating app in 16 countries
1:30 tinder has over 1.75 million paid
1:34 subscribers and 275 million in what is
1:37 largely recurring revenue the app
1:39 success with its premium offering which
1:41 comes with unlimited slides no
1:43 Geographic limits has pushed competitors
1:45 to launch their own subscription
1:47 services the loser Millennials that you
1:49 now don't just have to download an app
1:51 to find love you also have to pay for a
1:54 loser and we've been saying this for two
1:56 years
1:56 virtual reality we are officially at the
1:58 beginning of the end mark zuckerberg
2:01 called virtual reality the next big
2:03 thing and predicted vr would unlock new
2:06 world unfortunately consumers don't seem
2:08 to agree
2:11 just three years after buying oculus 42
2:15 billion dollars facebook is closing 200
2:18 of its 500 oculus pop-ups and Best Buy's
2:21 due to poor performance some going days
2:24 without a single demonstration
2:26 this is an example of how one man who's
2:28 supposed to be the jesus christ of
2:29 technology can inspire and waste
2:32 billions of dollars of other people's
2:34 money guys worried about an unwanted
2:36 pregnancy I have the answer
2:39 take your day to an olive garden pay
2:41 with it
2:42 discover card and show up with your
2:45 oculus around your neck I promise you no
2:48 kids no sex what is the big dog carry
2:50 the gold card that's right
2:52 unfettered access on on blackout days to
2:55 Delta lounges mr. wrong like both will
3:02 be next week ….
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