Prof G Markets An Nvidia Challenger Files For An IPO + Can A New CEO Turn Nike Around?
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Oct 7, 2024 Tesla's quarterly successes and CVS's potential breakup kick off the discussion. A deep dive into Cerebras Systems raises eyebrows but highlights possible investment benefits. The hosts analyze the strategic moves of Gulf sovereign wealth funds. Nike's recent revenue drop and the implications of a new CEO take center stage, with a focus on the brand's reliance on marketing amidst changing consumer expectations. Will Nike adapt, or is its historical strength about to be tested?
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NYT and Red Sox
- Scott Galloway recalls his time on the New York Times board, questioning their ownership of the Boston Red Sox.
- The CEO's justification, "special insight into Boston athletics," struck him as nonsensical, highlighting diversification for unclear reasons.
CEO Incentives
- CEOs are incentivized to grow companies for higher compensation, often leading to unsuccessful acquisitions.
- Company size is a factor in CEO compensation, creating a bias towards expansion.
Spins vs. Acquisitions
- Acquisitions often fail due to overpayment, integration issues, and the premium paid to shareholders.
- Divesting assets, or spins, usually benefit shareholders as the market often undervalues conglomerates.