Prof G Markets: Adidas’ Crisis Management, Google and Meta Earnings, and Market Moving Fed Speeches

Earnings

Scott Galloway analyzes the recent disappointing earnings reports from Google and Meta, highlighting significant declines in revenue and stock value. Google reported its fifth consecutive quarter of slowing revenue growth, with YouTube's revenue dropping for the first time on record. Meta faced its second consecutive revenue decline, with quarterly revenue down 4% from the previous year and shares plummeting 20% 1. Scott predicts massive layoffs in ad-supported big tech companies like Twitter, Snap, Meta, and Google in the next six months due to their overexpansion 2.

My prediction is in the next six months, 10,000 people are going to be laid off from ad-supported big tech, Twitter, Snap, Meta, and Google. These companies have just gotten too big.

--- Scott Galloway

This economic downturn spells significant challenges ahead for these tech giants.

   

Advertising

The advertising landscape is undergoing a seismic shift, significantly impacting Google and Meta. TikTok's rapid revenue growth and Apple's privacy changes have disrupted the digital ad ecosystem, making it harder for these giants to collect user data and maintain their ad revenue streams 3. Scott Galloway explains that TikTok's revenue surge and new advertising entrants like Hulu and Apple TV are siphoning off billions from traditional players 3.

TikTok, I think, went from $4 billion to $12 billion in revenue last year. It'll easily go from $12 billion to $24 billion.

--- Scott Galloway

Apple's privacy changes have further kneecapped Meta's ability to collect first-party data, leading to a massive decline in earnings 4.