Prof G Markets: Has Apple Lost Its Mojo? + BlackRock’s $23B Bet on the Panama Canal
Mar 10, 2025
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Disney faces layoffs and Walgreens gets taken private amidst shifting market strategies. BlackRock’s bold acquisition of ports near the Panama Canal sparks financial excitement. The hosts question Apple’s innovation pace and discuss the implications of Scott’s decision to sell his Apple stock. They examine how recent product launches reflect on the tech giant's market position. Insights into corporate responsibility and the evolving landscape of media and retail management round out the conversation.
57:46
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Quick takeaways
Disney's workforce reduction reflects a strategic approach to tackle declining ad revenues amid a challenging media landscape.
Walgreens' decision to go private represents a necessary restructuring to confront its declining market position and ongoing legal challenges.
Apple's recent product launches reveal stagnation in innovation, leading to concerns about its market valuation and future growth potential.
Deep dives
Fintech Fraud Arrest
The co-founder of the fintech company Aspiration was arrested for allegedly conspiring to defraud investors out of $145 million. This situation highlights the early skepticism around the firm’s claims of addressing climate change through financial services, which included promoting a debit card as eco-friendly. The firm’s attempt to go public via SPAC at a $2.3 billion valuation raised red flags concerning its business model and transparency. The discussions point to the broader issue of companies using social justice as a facade while engaging in questionable business practices.
Disney Workforce Cuts
Disney announced layoffs affecting nearly 200 employees, approximately 6% of its workforce in specific divisions like ABC News and Disney Entertainment. This move is seen as part of a larger trend in the media industry where ad revenues are declining significantly, prompting companies to cut costs and streamline operations. As linear TV viewership decreases, Disney is adjusting its business model to remain competitive amidst industry challenges. This shift reflects the ongoing consolidation within media companies as they face an evolving advertising landscape.
Walgreens Private Equity Takeover
Walgreens is going private in a $10 billion deal with Sycamore Partners, marking a significant drop in its market value from $100 billion a decade ago. The factors contributing to Walgreens’ decline include outdated management strategies and failure to keep pace with competitors like CVS in the pharmacy sector. Lawsuits, particularly related to opioid sales, further compounded the retailer's struggles, prompting drastic restructuring efforts upon acquisition. Sycamore is expected to break up the company into separate units to refocus its operations and manage costs effectively.
Starlink Contract Cancellation
Ontario has canceled its contract with Starlink, citing the desire to avoid engagement with companies promoting economic attacks on the province. This high-profile decision signals growing public sentiment against Elon Musk's ventures as consumer dissatisfaction rises. With Starlink being a key growth area for Musk's businesses, this cancellation could set a precedent for other regions to rethink their relationships with his companies. The strategic move could impact Starlink's expansion plans and signal a shift in consumer and government relations regarding tech companies.
Apple's Product Struggles and Market Shift
Apple's latest product announcements, including an updated MacBook Air and new iPad Air features, have received criticism for being underwhelming and lacking innovation. The decline in significant new features reflects broader concerns over Apple's stagnant growth and high price-to-earnings ratio, outpacing competitors like Microsoft and Meta. Executives are contemplating selling Apple stock due to its perceived overvaluation amidst a lack of meaningful product advancements. This situation illustrates the tension between market expectations and the realities of growth within the tech industry.
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.
