The Prof G Pod with Scott Galloway Prof G Markets: Uber and Airbnb Earnings, Apple’s Debt
11 snips
Aug 8, 2022 This week, the discussion dives into the contrasting market reactions to Uber and Airbnb’s strong earnings, emphasizing how narratives often overshadow raw numbers in stock valuation. Scott sheds light on Apple’s significant debt, framing it as a double-edged sword. He highlights how Apple has cleverly used bond issuance to fund dividends while managing tax implications. The talk reveals a deeper connection between storytelling and financial outcomes, questioning how perceptions shape corporate evaluations in today’s market.
AI Snips
Chapters
Transcript
Episode notes
Uber's Turnaround
- Uber doubled its Q2 revenue year-on-year, reaching $8 billion, and became cash flow positive.
- Scott Galloway's view on Uber has shifted from negative to positive due to these improvements and strategic acquisitions like Postmates and Drizzly.
Profits vs. Cash Flow
- Consider both profits (GAAP) and cash flow when evaluating a company's financial health.
- Cash flow is crucial because companies fail due to lack of cash, not unprofitability.
Expectations Drive Stock Prices
- Stock prices are heavily influenced by expectations, as seen with Airbnb's case.
- Despite beating revenue and earnings expectations, Airbnb's stock initially dropped because the positive results weren't as substantial as anticipated.