Has Apple Lost Its Mojo? + BlackRock’s $23B Bet on the Panama Canal
Mar 10, 2025
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The discussion kicks off with a look at Disney's layoffs and Walgreens going private. The hosts analyze BlackRock's strategic ports acquisition near the Panama Canal, predicting big returns. They delve into Apple's latest product launches, raising concerns about the company's innovation and stock performance. One host shares his decision to sell Apple shares, while the other offers forecasts on the tech giant's future. It's an engaging mix of market insights and investment strategies that keep listeners on their toes.
57:46
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Quick takeaways
Disney's workforce reduction reflects a significant shift in the media landscape as it responds to declining revenue and changing viewer behaviors.
BlackRock's strategic investment in Panama Canal ports highlights a potential lucrative opportunity amid evolving global trade routes and economic dynamics.
Apple's recent product launches reveal a concerning stagnation in innovation, prompting investor skepticism about the company’s future growth and stock performance.
Deep dives
Fraud Allegations in Fintech
A major fintech startup's co-founder faces serious charges for allegedly defrauding investors of $145 million, underscoring the potential pitfalls in the fintech sector. Years prior, concerns were raised about the company's legitimacy, claiming it could 'change climate change' through its products. Investigations revealed that the firm, established as a socially responsible entity, was merely selling credit cards while misrepresenting its contributions to sustainability. Ultimately, the IPO was abandoned as financial discrepancies and questionable marketing tactics came to light, leading to the co-founder's arrest.
Impact of Disney's Workforce Reductions
Disney announced layoffs of nearly 200 employees, approximately 6% of its ABC News Group workforce, in response to declining revenue. The company is facing significant challenges as the U.S. linear TV market is expected to shrink substantially over the coming years, exacerbating financial pressures. Many high-profile anchors have seen substantial pay cuts amid this trend, highlighting the competitive nature of the media landscape. The anticipated need for further workforce reductions suggests a restructuring phase for Disney as it adapts to changing viewer behaviors and market conditions.
Walgreens Goes Private
Walgreens has officially gone private after a $10 billion buyout by Sycamore Partners, marking a significant change for the legacy company. Once valued at $100 billion, Walgreens has struggled due to outdated management and market pressures from competitors like CVS, which has embraced telehealth innovations. The company was also plagued by legal issues, particularly lawsuits related to opioid sales, which further complicated its operations. As Sycamore plans to divide Walgreens into different units, there are concerns about the long-term viability of the brand in a rapidly evolving retail environment.
Starlink Contract Cancellations in Ontario
Ontario recently canceled a substantial $100 million contract with Starlink, signaling a potential shift in governmental support for Elon Musk's company. The decision was fueled by political tensions surrounding U.S.-based companies and comes amid broader critiques of corporate behavior in Canada. The cancellation reportedly aims to protect Ontario's interests and signal a strong stance against perceived economic threats. As Starlink’s user base has grown significantly in Canada, this action may impact its future growth and relationship with the Canadian market.
Apple's Declining Product Innovation
Apple released a new MacBook Air and iPad Air, but the updates have been criticized as uninspired and indicative of a broader decline in product innovation. The tech giant's stock showed volatility following the announcements, reflecting investor concerns about its future growth potential. Comparisons are drawn between Apple's current product offerings and those of its competitors, highlighting a stagnation in both hardware and software development. As analysts express skepticism about Apple's high valuation amidst lackluster product releases, there are predictions that stock prices could drop significantly if innovation does not improve.
Scott and Ed open the show by discussing Disney’s latest round of layoffs, why a private equity firm is taking Walgreens private, and Ontario’s decision to cancel its Starlink contract. They then analyze BlackRock’s decision to buy the ports on either side of the Panama Canal, breaking down why it could be a highly profitable move. They also discuss what Apple’s newest product launches reveal about the state of the company. Scott explains why he’s begun offloading his Apple stock, while Ed makes a prediction about where shares are headed in the next six months.
