Scott Galloway: Amazon Will Be Broken Up
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Scott Galloway: Amazon Will Be Broken Up


A winner: Amazon and their acquisition of
Whole Foods for $13.5 billion. We don’t like to gloat, but here are our predictions around the acquisition. Okay, so we like to gloat a little. This deal will be for Amazon what Instagram was for Facebook: a genius acquisition that gives them an unbelievable growth vehicle. Amazon in our view is going to be the first trillion-dollar market capitalization company. The acquisition was essentially free as the marketplace said to Amazon hey it’s yours and bid up their stock more than the value of the acquisition price. In addition, other retailers were told that they are going to pay for this acquisition as their value was taken down the day that deal was announced. Grocery is ripe for disruption. It’s also the largest consumer sector weighing in at $750 billion — and Amazon is about to become the fastest-growing $1 billion-plus grocer. The markets are going to love that. Just one and a half percent of fast moving consumer goods sales in the US occur online. Even in South Korea, that enjoys the greatest global penetration, at just 16%, shy of the 20% tipping point that really causes disruption in the sector. Who’s the big winner here besides Amazon? Consumers. Have you ever wanted to shop at Whole Foods but it was just too damn expensive? Well, your prayers have been answered. Amazon is going to lay their operational
expertise across Whole Foods, bring down prices and also put in place their hurdle rates for profitability i.e. zero. As a result we’re about to get a
Mercedes for the price of Toyota. Whole Foods is about to become in a word, awesome. And who’s the most dominant company on the second most important screen in the world, your television? Netflix, but for how long? They’ve increased their original content budget to $6 billion only because Amazon’s feet they can hear behind them. Amazon is about to become the fastest-growing media company in the world and they’re going to get sports, they’re already streaming some NFL games. Look for them to capture the Olympics, March Madness or the Super Bowl with their infinitely cheap capital which will only expedite the incredible fall television is going to register or broadcast TV is going to register when they no longer have sports as their firewall of viewership erosion. And who’s the most innovative hardware company in the world? Yes it’s still Apple, but for how long? The most innovative hardware products of 2016 to 2017? The Apple Watch? The AirPods? No, Amazon’s Alexa. Oh and who happens to be the most dominant company in the fastest-growing tech sector, the cloud? Amazon. By 2020 Amazon will be our first
trillion-dollar market cap company. But don’t begin celebrating yet as soon
after a district attorney will realize that the fastest blue line path to the governor’s mansion will be to go after Amazon and break them up as we begin to connect the dots and realize this amazing company is destroying jobs faster than we can recreate them. 2020, a trillion dollars and the end of Amazon as we know it. We’ll see you next week.

24 Comments

  • Freddy Flores O

    Jeff Bezos will have impeached Trump, before a breaking up happen. Amazon is an amazing company, specially for consumers, but its growing could be very dangerous for the general society and the economy.

  • Rowan Gontier

    Imagine a 1000 boys, and a 1000 girls at a college. One guy gets all the girls. After reform, 10 guys get all the girls. Then 990 guys think: "nothing has changed".

  • yourmom dad

    Apple is at 988B right now with 1T in the very near future. Amazon being the first trillion dollar company was a joke, Also goes to show that the viewers here are just blind followers 88% say yes it will be. When this video came out apple was at like 800B and amazon was at like 400B.

  • TioSeuss

    Sorry, Scott close, but no cigar. Looks like Apple won the first Trillion dollar company benchmark!

    https://money.cnn.com/2018/08/02/investing/apple-one-trillion-market-value/index.html

    Amazon was close though.

  • SPC DOTIE

    It doesn't take a genius but what bothers me is that you actually made a video about it – so in my small opinion – you are obsessed with money – I feel sorry for you …. yet – I would love to see the end of super companies … my company closed after 40 years because of these people … monopoly rules were set in place for a reason and they have been forgotton

  • Emerson Herrera

    What if they buy the Federal Reserve and pay all the debt of the United States government and create their own government and we become slaves rule by robots and
    Jeff bezos becomes a dictator and accomplish what Hitler wanted to accomplish😬🏃

  • Margaret Burgess Zbikowski

    If the reason a retail store has cache, is because it is costly and rich people can afford it, what happens when you make it cheaper and have digital checkout? I do not see this working out well. Will Tech one day try to reinvent the Village? Yes, that is what they think they have done. But it is the Company village. It is the company store, who owns you. Welcome to Zucker Berg. Or Bezo ville.

  • D. A.

    Whole Foods not doing so well in beginning of 2019, and Apple was the first trillion dollar company, but that had nothing to do with the company and everything to do with politics and an inflated stock market overall.

  • Telluwide

    Two years later……has Amazon broken up yet Scotty boy? So much for your predictions… I wouldn't go into book making if I were you….

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