#56 - Tesla is Overvalued and Elon Knows It. Walmart+Shopify vs. Amazon, and Winners and Losers of the App store battle.
|Sep 4, 2020||3|
In this week's episode, we're talking about how Apple is tightening privacy settings in ios14 and how that might affect Facebook. We'll revisit why companies like Tesla issue stock to raise money when their share price is up and end off talking about whether there will be a place for the traditional grocery store in a world of same-day deliveries
On Spotify click these timestamps in the show notes to skip ahead in the episode.
Will iOS 14 privacy updates affect Facebook or Amazon? (0:55)
Why companies like Tesla issue stock to raise money. (13:50)
Amazon fresh versus Walmart groceries. (25:00)
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📵 Facebook Says Apple’s New iPhone Update Will Disrupt Online Advertising
Under Apple’s changes, which will go into effect this fall in its iOS14 operating system, Facebook and other companies that facilitate online advertising will no longer be able to collect a person’s advertising identifier without the user’s permission. Many apps will begin asking users whether or not they want their behavior on the web to be tracked for the purposes of personalized ads.
Example of Financial Time Misrepresenting the facts:
Check out Ben Thompson’s outlook on what this spat between Apple and Facebook means and who will come out the winner and who will be the losers… it’s not who you think. see here
From the linked outlook article: Apple’s de facto deprecation of the IDFA here: Apple and Facebook
Every user on iOS has an Identifier for Advertisers (IDFA) (Android has equivalent functionality); Apple added the IDFA in 2012, and banned ad networks from using a device’s MAC address or Unique Device Identifier (UDID) to identify a user. Unlike a MAC address or UDID, the IDFA could be reset or turned off by the user; if turned off, then a call to the IDFA API simply returned all zeros.
Because the IDFA is consistent across applications, it makes it possible to track a user’s activity across apps. For example, suppose you click on an advertisement in one application for a mobile game, download the game, and then play the game; because the IDFA is the same across both apps, the ad network knows that clicking the ad led to you downloading and playing the game.
Facebook super-charged this functionality: because Facebook also has access to the IDFA, it could more finely target that ad in the original app, drawing on all of Facebook’s data about you; this meant that the game developer could advertise to fewer people because they had a higher liklihood to convert, which meant that Facebook could charge a higher price for the ad on a CPM ( cost per thousand of advertsing impressions) basis, which meant the original app made more money from running the ad.
Over the last 6 months, Tesla has been the hottest stock in the market. Since March 23rd lows it’s up nearly 600%… But is it Justified? There’s a bifurcation on Financial Twitter regarding the valuation and justification for its price…
Choose your fighter.
Short Sellers are down 18 billion this year and were down 4 billion in July
🛒 Walmart’s new Amazon Prime competitor, Walmart+ will launch on September 15.
What does Walmarts relationship with Shopify mean for retailers? Will Walmart+ be worth the money and does it make for a formidable adversary to Amazon prime and their fulfillment business.
We think it does.
The service will cost $98/year giving customers free shipping on orders over $35, Scan & Go shopping, and fuel discounts.
Monthly subscriptions will also be available for $12.95.
We can only assume Prime members are canceling their memberships for this screamin’ deal.
Walmart is 15 years behind Amazon Prime so we’ll give them time.
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p.p.s. Answer from last week: Dude Perfect
Enjoy the rest of your week!
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