Markets

Down 20%. Was 25%, but rallied up 5% just this week.  

GDP growth 2.6% (-1.6 and -0.6 in Q1 and Q2). So no recession…currently. 

Apple. +7%

Amazon. -14% 

Meta. -25%

Amazon. AWS insanely profitable. All other biz combined is break-even. Sales of $127b and Operating Income of only $2.5b (2%).

• Story: AWS $5.4b. All Other: $-2.9b. Everything losing money!! 
• Tesla: $5b on $21b. 

Meta: meltdown. 

"Meta's results last night was an absolute train wreck that speaks to pervasive digital advertising doldrums ahead for Zuckerberg & Co. as they make the risky and head scratching bet on the metaverse," Wedbush analyst Dan Ives said in a report. 

Revenue flat to Q4 20 at $27b. NI 4.3 vs 7.8!! 

Viral Video (Play audio). 

Twitter: what “products” does a 23 yr old product manager manage? 

• 71% off high. 
• Mkt cap $265b. Was 913b.
• Headcount growth! The number of employees is up over 3x from 25k to 85k employees in just the last four years! 
• Wants everybody to work in MetaVerse!? 
• Brad Gerstner letter.
  • To accomplish this goal, we recommend a three step plan that will double FCF to $40 B per year and focus the company’s teams and investments:
    • Reduce headcount expense by at least 20%;
    • Reduce annual capex by at least $5 B from $30B to $25B; and
    • Limit investment in metaverse / Reality Labs to no more than $5B per year.

The Netflix rebound.

• Hammered too hard initially. 
• Reached “profitability” and growing. No one else has.
  • Disney will. 
  • Amazon spending too much! 
• Advertising more appreciated. Not affected by Apple tracking. A rich ocean to fish in. 
• Comcast. Peacock has 15m subs and lost $614m in the quarter. 

Twitter takeover. 

• Walks in with Kitchen Sink. Entering Twitter HQ – let that sink in!”
• Fires CEO and CFO and head lawyer. $100m in severance pay
• Denies that he’ll fire 75% of workforce. 
• Tesla engineers reviewing code. 
• Employees walking out with boxes. Hoax? 
• Just tweeted: Twitter will be forming a content moderation council with widely diverse viewpoints. No major content decisions or account reinstatements will happen before that council convenes.
• People threatening to leave.. Where? Truth Social, Parler? 

Tesla: 

• Cruise vs Tesla FSD in SF. 

Recommendations: 

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