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It Sucks To Be A Grownup

May 06, 2018 4:18 AM ETMETA, AMZN, SNAP, TSLA86 Comments
Scott Galloway profile picture
Scott Galloway

This past week saw a slew of earnings and more evidence that the Four are increasing their influence, and have become toxic for our economy and the commonwealth.

Amazon (AMZN) crushed earnings, and the stock hit an all-time high. We've said, for two years now, that Amazon would be the first $1T firm. Look for this by EOY. Amazon earnings per share were expected to be $1.26 and came in at $3.27. Uhhh, ok. As discussed on Fox, the president's clumsy assault on the Seattle firm was a buying opportunity.

The cloud and "other" segments (e.g., Amazon Media Group) grew 49% and 132%, respectively. These businesses, unlike the core retail business, have huge operating margins and subsidize the core retail business, making it unassailable. So, every time a small business contracts with AWS, a merchant at Chico's loses her job. When the Chinese sold steel into the US at prices below cost, we called it dumping and moved in on them. When Amazon dumps in retail, ravaging a sector that's the third-largest employer in America, we call it innovation.

Merc for the Price of a Camry

And get this, when you order online for home delivery, Amazon / Whole Foods is now less expensive than groceries ordered from Kroger (KR). What would happen to the auto industry if all of a sudden Mercedes began selling S-Class sedans for the price of a Camry? Well, that's what's unfolding in US grocery. Other than education, hard to identify an industry that had stuck out their chin farther than grocery.

I'm Taking My Building and Going Home

Amazon announced they were halting work on a tower they're building as the Seattle City Council nears a vote on a new tax targeting large employers to address homelessness and housing affordability. This is called throwing your

This article was written by

Scott Galloway profile picture
Scott Galloway is a Professor of Marketing at the NYU Stern School of Business where he teaches brand strategy and digital marketing. In 2012, Professor Galloway was named “One of the World’s 50 Best Business School Professors” by Poets & Quants. He is also the founder of Red Envelope and Prophet Brand Strategy. Scott was elected to the World Economic Forum’s Global Leaders of Tomorrow and has served on the boards of directors of Eddie Bauer (Nasdaq: EBHI), The New York Times Company (NYSE: NYT), Urban Outfitters, and UC Berkeley’s Haas School of Business. He received a B.A. from UCLA and an M.B.A. from UC Berkeley.

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