Prof G Markets: Will Tesla’s Robotaxi Ever Arrive? + Sin Stocks and Zyn Nicotine Pouches

Alphabet's Growth

Alphabet's recent financial performance showcases its strategic focus on AI and YouTube, despite concerns over heavy AI spending. Scott Galloway highlights Alphabet's impressive capital expenditure, which hit $13 billion this quarter, up 91% from a year earlier, largely driven by AI investments 1. Ed Mylett notes that despite fears of AI competition, Alphabet's search revenue rose 14%, and YouTube ad revenue climbed 13%, demonstrating resilience in its core businesses 1.

YouTube ads, just the ads alone, are now bringing in, on an annualized basis, $35 billion per year, which is higher than Netflix's total revenue last year.

--- Ed Mylett

The market remains optimistic about Alphabet, with its stock up 25% year-to-date, outperforming other tech giants like Microsoft and Amazon 1.

   

Spotify's Innovation

Spotify's innovative approach in the music streaming industry has led to significant growth, with monthly active users up 14% and revenue up 20% 2. Scott Galloway praises Spotify's strategy of prioritizing premium subscribers, who account for 95% of its gross profit, and notes the company's bold decision to initially distribute revenues disproportionately to artists and labels 2.

They've taken an entire medium and distilled it to a single icon on your phone that is searchable and very user friendly.

--- Scott Galloway

Additionally, Ed Mylett highlights CEO Daniel Ek's innovative earnings communication strategy, using social media to directly reach investors, which could set a new trend in corporate communication 3.