Prof G Markets: Disney’s Proxy War, Goldman’s Guidance Miss, and the Dating App Market

Earnings Context

Goldman's recent earnings miss, while significant, is not as dire as it appears when contextualized against past performances. Scott Galloway and Ed Elson discuss how, despite falling short of analyst estimates, Goldman had its second-best year in a decade, with $47 billion in revenue and $11 billion in net income 1. This performance, although down from the exceptional year of 2021, reflects a normalization rather than a decline.

Historically speaking, Goldman and the management team there are doing really well. They just aren't doing as well as they were last year when all the moons lined up.

--- Scott Galloway

The conversation highlights that the real story is not about failure but about adjusting expectations in a post-boom market 1.

   

Strategic Moves

Goldman's strategic ventures into consumer banking, particularly with Marcus, illustrate their willingness to experiment despite the risks. Scott Galloway argues that leveraging the Goldman brand in new areas like transactions and payments is a necessary risk, even if it means facing challenges from competitors with deeper pockets 2. He draws parallels between Goldman's and Disney's attempts to innovate, noting that both companies face pressure to stay relevant in rapidly evolving markets.

Both Disney and Goldman suffer from the same desire to be young again and pump their face full of Botox in the form of going after the cool new stuff.

--- Scott Galloway

This exploration into new territories is seen as cyclical, with the potential for recovery and growth as market conditions stabilize 2.