Big Tech Perfect Storm: Apple $AAPL, Amazon $AMZN, Facebook $FB, Google $GOOG $GOOGL - L2inc.com video published Sep 28, 2017, featuring Scott Galloway on Digital Winners and Losers:
"Society treats Apple, Amazon, Facebook, and Google as a universal good. But how do we pay our soldiers, firefighters, and teachers if a firm can ascend to $468 billion in value -- fifth in the world -- without paying any meaningful corporate taxes?"
Slides:
Sources:
(0:38) L2 Analysis of Amazon 10Ks and Walmart Annual Reports.
(0:48) “Amazon Market Cap History (AMZN),” macrotrends, September 2017. http://bit.ly/2xBBvls
(0:48) YCharts, September 2017. http://bit.ly/2uWnj2y (0:59) “Amazon Market Cap History (AMZN),” macrotrends, September 2017. http://bit.ly/2xBBvls
(1:01) “Largest Companies by Market Cap Today,” Dogs of the Dow, September 2017. http://bit.ly/2cziOG2
(2:26) “The Fortune 500’s 10 Most Profitable Companies,” Fortune, June 2017. http://for.tn/2sD2CaG
(3:09) StatCounter Global Stats, August 2017.
(3:14) Alphabet's 2016 10-K Filing and Zenith.
(3:33) “Google’s EU Fine Is a Small Price to Pay for Scale,” The Wall Street Journal. June 2017. http://on.wsj.com/2wakRWL
Song - MISSIO - Bottom Of The Deep Blue Sea
YouTube.com auto-generated transcript:
00:01 we talk a lot about the four and the
00:03 preferred treatment they receive Apple
00:06 Amazon Facebook and Google by Wall
00:09 Street our government and our society we
00:12 engage in a gross idolatry of innovators
00:14 that has reached a tipping point the
00:16 perfect storm is growing around the
00:18 floor and society is beginning to
00:20 regurgitate on the notion that these
00:22 firms are at Universal good and some
00:24 their perceptions or their images are
00:26 moving from chicken salad to chicken
00:29 s_it it appears that we have had enough
00:32 some stats Amazon since 2008 Walmart has
00:36 paid sixty four billion dollars in
00:37 corporate income tax well amazon has
00:39 paid 1.4 billion this despite the fact
00:42 that in the last 24 months amazon has
00:46 added the entire market capitalization
00:48 of wal-mart to its value the most
00:51 uncomfortable question in business and
00:53 my view is how do we pay our soldiers
00:55 firefighters and teachers if a firm can
00:58 ascend to four hundred and sixty billion
00:59 dollars in value fifth most in the world
01:02 without paying any meaningful corporate
01:04 taxes and now mayors are tripping over
01:07 each other throwing tax breaks and
01:09 abatements to get Amazon to open their
01:11 second headquarters in their city every
01:14 mayor wants to detonate a prosperity
01:16 bomb in the city square however what's
01:18 more likely to happen is an Olympic like
01:21 bidding intoxication where there's a lot
01:23 of high-fives and celebration for 12
01:25 months followed by years of economic
01:27 analysis and hangover that this was a
01:30 bad deal what should Amazon do they
01:34 should starts their hat white become a
01:35 better citizen pick Detroit and
01:38 revitalized the Metro and invest in
01:40 education and Riaan gauging and re
01:43 employing some of the engineers laid off
01:45 in the auto industry Apple we have our
01:48 religion our new Jesus Christ has Steve
01:50 Jobs the iPhone X should be called the
01:53 iPhone cross we've decided the iPhone is
01:55 holier than any other object someone
01:58 gets thrown into a trunk
01:59 you can get a court order to search that
02:00 car but don't try and search the iPhone
02:03 that's holier at Apple's recent product
02:06 unveiled the company's head of retail
02:07 Angela Aaron said the company no longer
02:09 refers to its shops as stores we call
02:12 them towns
02:14 that's like calling the playground at
02:17 Grace Church that wanted to charge my
02:18 kid 48 thousand dollars a year to play
02:21 with blocks
02:22 Central Park what bullshit this company
02:25 is the most profitable firm in the world
02:26 and they deserve that but they have
02:28 decided that privacy laws no longer
02:30 apply to them
02:32 Facebook arguably the most successful
02:34 media company of the last 20 years has
02:37 simply put become Putin's bitch they
02:40 need to overcorrect and take
02:41 responsibility and thus far the response
02:43 has been underwhelming with the social
02:45 platform citing concerns about
02:46 censorship and saying they can't be an
02:48 arbiter of truth02:49this isn't about censorship it's not
02:52 about free speech it's about you
02:54 refusing to inject friction and cost
02:57 into your scalable business model this
02:59 will be complex and it will be expensive
03:01 so is democracy Google the search engine
03:05 enjoys 90% plus sheriffs search across
03:08 many of its largest markets and search
03:10 is now a bigger business than the entire
03:12 ad market of any nation with the
03:15 exception of the US are we comfortable
03:17 with one for-profit entity getting to
03:19 decide the answers to 90% of the queries
03:22 posed to our modern God search our
03:25 governments have implicitly communicated
03:27 to these firms with their fines that are
03:29 the equivalent of a 25 cent parking
03:32 ticket that the smart thing to do the
03:34 shareholder driven thing to do is to
03:36 break the law before need to get out
03:39 ahead of this issue fast that's wrapping
03:41 themselves in a neon blue pink or
03:43 rainbow blanket as an illusionist trick
03:45 to distract people from the belief that
03:48 they validated an age-old truth power
03:51 corrupts the worm has turned
(0:38) L2 Analysis of Amazon 10Ks and Walmart Annual Reports.
(0:48) “Amazon Market Cap History (AMZN),” macrotrends, September 2017. http://bit.ly/2xBBvls
(0:48) YCharts, September 2017. http://bit.ly/2uWnj2y (0:59) “Amazon Market Cap History (AMZN),” macrotrends, September 2017. http://bit.ly/2xBBvls
(1:01) “Largest Companies by Market Cap Today,” Dogs of the Dow, September 2017. http://bit.ly/2cziOG2
(2:26) “The Fortune 500’s 10 Most Profitable Companies,” Fortune, June 2017. http://for.tn/2sD2CaG
(3:09) StatCounter Global Stats, August 2017.
(3:14) Alphabet's 2016 10-K Filing and Zenith.
(3:33) “Google’s EU Fine Is a Small Price to Pay for Scale,” The Wall Street Journal. June 2017. http://on.wsj.com/2wakRWL
Song - MISSIO - Bottom Of The Deep Blue Sea
YouTube.com auto-generated transcript:
00:01 we talk a lot about the four and the
00:03 preferred treatment they receive Apple
00:06 Amazon Facebook and Google by Wall
00:09 Street our government and our society we
00:12 engage in a gross idolatry of innovators
00:14 that has reached a tipping point the
00:16 perfect storm is growing around the
00:18 floor and society is beginning to
00:20 regurgitate on the notion that these
00:22 firms are at Universal good and some
00:24 their perceptions or their images are
00:26 moving from chicken salad to chicken
00:29 s_it it appears that we have had enough
00:32 some stats Amazon since 2008 Walmart has
00:36 paid sixty four billion dollars in
00:37 corporate income tax well amazon has
00:39 paid 1.4 billion this despite the fact
00:42 that in the last 24 months amazon has
00:46 added the entire market capitalization
00:48 of wal-mart to its value the most
00:51 uncomfortable question in business and
00:53 my view is how do we pay our soldiers
00:55 firefighters and teachers if a firm can
00:58 ascend to four hundred and sixty billion
00:59 dollars in value fifth most in the world
01:02 without paying any meaningful corporate
01:04 taxes and now mayors are tripping over
01:07 each other throwing tax breaks and
01:09 abatements to get Amazon to open their
01:11 second headquarters in their city every
01:14 mayor wants to detonate a prosperity
01:16 bomb in the city square however what's
01:18 more likely to happen is an Olympic like
01:21 bidding intoxication where there's a lot
01:23 of high-fives and celebration for 12
01:25 months followed by years of economic
01:27 analysis and hangover that this was a
01:30 bad deal what should Amazon do they
01:34 should starts their hat white become a
01:35 better citizen pick Detroit and
01:38 revitalized the Metro and invest in
01:40 education and Riaan gauging and re
01:43 employing some of the engineers laid off
01:45 in the auto industry Apple we have our
01:48 religion our new Jesus Christ has Steve
01:50 Jobs the iPhone X should be called the
01:53 iPhone cross we've decided the iPhone is
01:55 holier than any other object someone
01:58 gets thrown into a trunk
01:59 you can get a court order to search that
02:00 car but don't try and search the iPhone
02:03 that's holier at Apple's recent product
02:06 unveiled the company's head of retail
02:07 Angela Aaron said the company no longer
02:09 refers to its shops as stores we call
02:12 them towns
02:14 that's like calling the playground at
02:17 Grace Church that wanted to charge my
02:18 kid 48 thousand dollars a year to play
02:21 with blocks
02:22 Central Park what bullshit this company
02:25 is the most profitable firm in the world
02:26 and they deserve that but they have
02:28 decided that privacy laws no longer
02:30 apply to them
02:32 Facebook arguably the most successful
02:34 media company of the last 20 years has
02:37 simply put become Putin's bitch they
02:40 need to overcorrect and take
02:41 responsibility and thus far the response
02:43 has been underwhelming with the social
02:45 platform citing concerns about
02:46 censorship and saying they can't be an
02:48 arbiter of truth02:49this isn't about censorship it's not
02:52 about free speech it's about you
02:54 refusing to inject friction and cost
02:57 into your scalable business model this
02:59 will be complex and it will be expensive
03:01 so is democracy Google the search engine
03:05 enjoys 90% plus sheriffs search across
03:08 many of its largest markets and search
03:10 is now a bigger business than the entire
03:12 ad market of any nation with the
03:15 exception of the US are we comfortable
03:17 with one for-profit entity getting to
03:19 decide the answers to 90% of the queries
03:22 posed to our modern God search our
03:25 governments have implicitly communicated
03:27 to these firms with their fines that are
03:29 the equivalent of a 25 cent parking
03:32 ticket that the smart thing to do the
03:34 shareholder driven thing to do is to
03:36 break the law before need to get out
03:39 ahead of this issue fast that's wrapping
03:41 themselves in a neon blue pink or
03:43 rainbow blanket as an illusionist trick
03:45 to distract people from the belief that
03:48 they validated an age-old truth power
03:51 corrupts the worm has turned