David Rosenthal: prediction

Transcript context

…What, you mean Instagram? Well, no. I was going to tell you the evolution of our benchmark. I think Instagram is still one of, if not the top on the benchmark but I keep thinking about to NeXT and I don’t think you can argue that that’s not the greatest acquisition of all time. When you create a trillion dollars of value to top that. But also makes me think a little bit about like as much as we love IP and these fictions and what I was just talking about, in media, in movies and these franchises, the value that you can create in technology is so much more, like the leverage is so much higher that you can get from the media industry or really any other industry. This is why technology companies are so valuable. Thirteen people on Instagram can create many, many billions of value. You can’t make Iron Man 3 with 13 people, or the Iron Man theme park. And reiterating something we talked about last episode. Last quarter, Facebook’s operating margin went from 32 percent to 45 percent on the incredibly large revenues that they have as a mature company like technology. That is why technology companies are worth so much and you just can’t pull a lever to make the 23 percent profit margin from these Marvel films into something 1.5x that.…

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