Project Stargate & The Rise of Oracle + Scott’s Stake in La Equidad Football Club
Jan 27, 2025
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Scott and Ed dive into Netflix’s earnings and the intricate world of TikTok's potential buyers. The discussion shifts to Project Stargate, revealing its strategic ties to Oracle and the tech industry's evolving landscape. Ed shares insights on how this initiative could influence AI development. Scott also opens up about his investment in the Colombian soccer team La Equidad, sharing a personal connection to this venture and the unique opportunities within the Colombian football scene.
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Quick takeaways
Scott and Ed discuss Netflix's 44% subscriber growth in the fourth quarter, highlighting its significant dominance in the streaming market.
The Stargate initiative is positioned as a strategic branding victory for the Trump administration, enhancing Oracle's influence within the tech industry.
Scott's investment in La Equidad Football Club demonstrates a mix of personal passion for soccer and a strategy to diversify investments internationally.
Deep dives
Venture Capital Democratization
The Fundrise Innovation Fund aims to democratize access to venture capital, traditionally an exclusive space reserved for wealthy insiders. With a $150 million portfolio that includes top tech and AI companies, it allows smaller investors to participate with a minimum investment of just $10. This progressive approach counters the historical challenges of entry into the venture capital market, as it seeks to lower the financial barriers that have previously restricted participation. Such initiatives are gaining traction as they offer opportunities to a broader audience in areas typically perceived as unreachable.
Record Growth for Netflix
Netflix added a staggering 19 million new subscribers in the fourth quarter, representing a 44% increase from the previous year. This remarkable growth was coupled with strong financial performance, as the company surpassed earnings expectations and announced price increases across all its plans. The company's operating margins significantly increased, highlighting its dominance in the streaming service market. Analysts noted that Netflix's subscription model is increasingly segmented, reflecting broader trends of economic disparity in the entertainment industry.
Johnson & Johnson's Revenue and Accountability
Johnson & Johnson reported an impressive $22.5 billion in sales for the fourth quarter, although they faced scrutiny for not addressing rising healthcare costs in their earnings call. The company's focus remained on financial metrics rather than engaging with the wider crisis in healthcare affordability, which many argue they are partly responsible for due to high profit margins in pharmaceutical manufacturing. Analysts highlighted the disparity between perceptions of healthcare costs and the reality faced by consumers, advocating for more comprehensive discussions that include pharmaceutical companies during these earnings calls. Overall, this disconnect raises important questions about accountability in an industry plagued by rising expenses.
The TikTok Acquisition Landscape
Interest in acquiring TikTok has spiked, with notable figures like MrBeast and investors such as Kevin O'Leary forming bids for the platform. The process is complicated by geopolitical factors, notably the influence of the Chinese Communist Party over potential transactions involving the app. Experts suggest that substantial capital and the ability to manage substantial computational resources are crucial factors that will determine the success of any bidders. Ultimately, the prospects of a deal hinge on navigating complex regulatory and political landscapes while also addressing substantial investment commitments.
Scott Galloway's Investment in Colombian Football
Scott Galloway is part of an investor group that recently acquired a Colombian soccer team, La Equidad, alongside high-profile figures like Ryan Reynolds and Rob McElhaney. This investment reflects a personal passion for football coupled with a strategic move to diversify into international markets amid rising valuations in the U.S. The group aims to enhance the club's community engagement and potential profitability, leveraging Galloway's branding expertise. The excitement surrounding soccer's growth in Colombia adds a layer of enthusiasm to the investment, aligning personal interests with broader economic trends in the sport.
Scott and Ed open the show by discussing Netflix’s fourth quarter earnings, Johnson and Johnson’s latest earnings call, and potential TikTok bidders. Then Scott breaks down the new Stargate initiative, explaining how it served as a strategic branding victory for the Trump administration and will likely enhance Oracle’s influence within the tech industry. Ed offers his thoughts on what the project reveals about the evolving AI industry. Finally, Scott discusses his stake in a Colombian soccer team, explaining how the deal came about and how it aligns with his broader investment strategy.
