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Twitter is being de-listed from the New York Stock Exchange effective October 28th Friday that's likely because Elon Musk wants everyone to let his new ownership sink in well he's expected to take ownership of Twitter at 5 pm and says the rumors of him dismissing 75 percent of the staff are false well even though he is expected to cut a lot of expenses at Twitter he's got an uphill battle to work in the valuation for Twitter and in this video I'd like to talk about what you're buckling up for if you're deciding to ride or die with Elon Musk when this company goes private and the shares are delisted Friday I'm not entirely sure if that's Friday morning or Friday at the closing bell either way before or after Friday Twitter will be delisted and it will be a private company so we know that Elon Musk is paying about 44 billion dollars for this company the largest idea that he has is growing the user base of Twitter from it's current about 200 million users let's not even get into the discussion of how many of those are actually bought two one billion users that's about a 5x growth in users and then hopefully 10xing the monetize I monetizability of Twitter in order to essentially produce real cash flows and uh the idea of Elon Musk purchasing Twitter for 5420 has been the reason that Twitter has actually traded relatively close to 5420 because quite frankly Twitter would probably be selling for close to 15 to 20 dollars today since advertising companies are absolutely getting reamed uh during this uh this recession and it's really what's a beginning of recession which stocks tend to price in the worst of of course now we're getting actual EPS misses from companies like Google Microsoft and Facebook and so what do we get big downshifts all at all companies except for Twitter of course because elon's paid 54-20 for it now look it's all new he knows he's overpaying he was paying at the time like 70 times 2022 earnings that should have compressed by at least half it's old news to say he's paying double what it's worth we got that what's he going to do with the company well again double well 5x Revenue sorry 5x the user base and 10x the revenue and how does he plan to do that well according to sort of internal rumors that we're hearing Elon Musk is also hinting about this on Twitter that we might see Twitter turn into a Twitter space that can also include monetizable videos including subscription based live streams where you could essentially sign up for a one-time paid live stream or a paid Style live stream think about Twitter spaces but either for exclusive members or through some sort of paid subscription model kind of like maybe when I used to do Market open and close live streams publicly a paid version of that and then hosted on Twitter and one of the things that I'd like to add in terms of commentary is in order for this to be successful we should potentially look at the number one competitor in the space of a long form video and now we're not talking about short form video which would be Facebook reels YouTube shorts or tick tocks we're talking about long form generally deemed to be eight minutes plus but really anything over about three minutes and that is a horizontal video video would be a competitor like twitch Vimeo Facebook video or YouTube and clearly the elephant of the room is YouTube YouTube has the number one Nielsen rating for most watched streaming service as of September of 2020 which is actually an impressive feat but when we look at the numbers of the earnings provided by YouTube for Google we can see that YouTube advertising is down about 1.85 percent uh year over year and if we look at the percentage of Revenue that comes from YouTube compared to the total revenue for Google we can see that YouTube makes up less then the Google network of income it does make up nearly twice as much as Google Cloud but makes up a fraction of the ads that are spent on search in total YouTube ads make up only about 10.2 percent of of Google's entire revenue and that's actually declined as a share of Revenue YouTube used to represent 11 in income this was back in uh 2021 and now represents just 10.2 percent so not only is it experiencing a downshift in sort of the trend of growth but it's also becoming a less important part of Google's revenue which one of the reasons people have been very enthusiastic about Google over the last few years has been because of YouTube but that is actually becoming less notable at Google and so for Elon Musk to suggest hey let's just turn Twitter into a potentially to suggest let's turn Twitter into a platform for long form monetizability I have a few suggestions for Elon Musk and a warning so the first in terms of suggestions monetization is everything YouTube and Google have announced that they're planning to incorporate product placement buttons that pop up within videos while the videos are playing so maybe kind of like the little cards that pop up for another video you could actually purchase merchandise directly kind of like some channels have the merchandise shelf below videos this would actually pop up in videos when certain products are mentioned so if I say hey you know I've had a really good experience with my Google pixel phone click the link down below you could potentially do that directly through uh through a link that actually pops up on screen one that hopefully is also tapable on your iPhone and that would be my recommendation to Elon Musk make sure that if you would launch some sort of long-form video content you immediately launch with features that are potentially not only more advanced than what YouTube's going to come out with but are at least as good as what YouTube has it really wouldn't be that difficult to have the option to implement some form of iPhone because we know that or even smartphone in general we know about 50 percent of viewers are watching on their phones if not as many as 60 of people that while you're watching a video vertically you can actually click a button shop for a product while the video is maybe still playing in sort of the miniaturized player that I think would be Priceless and now YouTube is working in that direction so you've got work to do here obviously the most important thing is advertising revenue for creators now look there is a lot of entertaining content on Tick Tock and with shorts but my personal opinion is that if you want real education and real perspective you frequently need to resort to longer form video to get that and that's because you're going to attract a better Talent when you can actually pay creators through a monetizable video for example on YouTube when a video is more than eight minutes long we can monetize that video so if I knew you that every single video I made made 500 bucks for example I might think to myself well damn I'll just make 10 videos a day almost five grand a day you know just as an example right so whereas if somebody told you every video you made made five dollars like shorts frequently do and you spent the same amount of time making that kind of content uh you know making that content viral or viralask and attractive on a short form content where it really incentivizes more editing than potentially a valuable perspective well or just straight up content theft which is rampant in shorts people just basically regurgitating the the same almost verbatim content that you get of other people's shorts have gone viral right like this is not this is not actually perpetuating Society in a better Direction so personally I haven't been extremely interested in shorts although I've posted some shorts that I think have been very very educational and have done well but personally I think in order to really attract High Caliber creators monetization needs to be a number one priority benefit to the user who gets better quality content and it's a benefit to the Creator who is incentivized to continue to make their content better and better not having monetization for Content I think is is a really bad Doom Loop of uh really chasing not so educational Trends now there are a lot of things that are just meant to pass time and that's fine but if the goal is to educate and actually help people build wealth and I don't know that necessarily shorts are that option so that is a big priority number one monetization and if there's a way to include or incorporate more clearly or transparently product placements or advertisements to wear maybe a little Creator banners come up in an integrated way that's controlled by the Creator I think that's a real opportunity to expand revenue and you've really got a lot of work to do because here's the thing remember YouTube is just about 10.2 percent of the revenue of Google that's about a 1.2 billion dollar market cap company that's worth about 120 million dollars alone just for YouTube buying Twitter for for about 44 bills suggest that that might be a 3X if you can just compare to being par with YouTube but to be par with YouTube you've got to be able to drive the revenue so if you're going to drive Revenue with video you've got to learn what YouTube has done well and personally that's videos over eight minutes with one or two ads in between and supporting creators ability to build revenue so they continue to bring content to the platform now a danger that you're going to face is people just posting the same video on YouTube and on Twitter so somehow creating an organic incentive for people to post video videos on Twitter to be a little bit challenging and this is where I do have a word of caution because you do have an audience on Twitter that's very attuned to short form text in fact generally even threads uh you know the second tweet in a thread gets maybe 10 percent of the engagement of the initial tweet it's usually just initial tweets that do well and go viral and so it makes me wonder how many people are really going on Twitter to spend eight minutes on a video versus you know 30 seconds of scrolling between bus stops uh to see what the latest tweets are or news notifications I actually have uh right here just Out Of Reach of this camera right ding I touched it uh an iPad and I have a scroll list here of uh all my Twitter notifications so I actually have notifications on for uh just a limited subset of individuals or companies and so I have a scrolling feed that's basically a free news service almost of of notifications it's just an always-on iPad that just sits here so to me it would be relatively useless in this sort of purpose to have a bunch of videos pop up here because I use Twitter for different purposes so I do have a concern for that and I think that's a red flag for the rider Dyers going in on Twitter betting that this is going to be so easy to monetize I don't know why individuals would really be incentivized to to create for Twitter rather than YouTube or to leave YouTube to go onto Twitter uh that would potentially be a very expensive Endeavor to convert people like Joe Rogan uh or it would be a very difficult grind to prove that someone how the Twitter service is better and the eyeballs are actually there and I don't know that the user base on Twitter is looking for video content again when I think of video hey how to change an outlet I'm not going to Twitter for how to change an outlet I'm going to the number one video search engine and that's uh you know hey YouTube yeah it just is what it is you also have the competition of Google if I type in to search how to do something usually Google videos come up so you do have a sort of a little bit of a roadblock there although there are arguments that that's anti-monopoly and maybe videos or that sort of encouraging Monopoly right that's anti-free Enterprise and uh and competitive and therefore there should be Twitter videos that show up there but now do individuals need to purchase potentially a Toyota premium membership so that that way they don't have to constantly see ads uh which is something else to consider I'm sure that'd be an option and then would it be site-wide or individual wide I think there are a lot of challenges I do think that there are a lot of opportunities for removing some of the filtering and being more transparent about content moderation that does happen at Twitter I think that would be phenomenal I do think that Center censorship should exist to the extent that laws are violated but not beyond that for example when I announced my campaign for governor against uh you know a a camp an existing campaign who's heavily funded by big Tech in California uh you know I had my post deleted and censored and and that's really not okay right that's that sort of censorship is unacceptable I mean we almost had to sue CNN we had to send them a cease and desist letter for for censoring the existence of our campaign blatantly and it was disgusting so uh censorship is is absolutely terrible and should never exist everything should should exist out in in the open I'm a big proponent of that and it's one of the reasons why I'm very transparent about uh failures that I have or mistakes that I make uh or or problems that I face because I I don't think transparent currency is just let me just show you all the good it's let me show you some of the downsides as well so I do think transparent content moderation is great but we also risk potentially uh turning into a one-sided political Echo chamber and that's sort of a danger that I believe that certain platforms like rumble or even parlor have fallen victim too because unfortunately uh these particular platforms can cater specifically to one demographic one political party and then it's it's almost like you have an even worse situation because you're just adding fuel to the fire of of anger and hate for for another side in an echo chamber rather than promoting uh discourse so uh that's difficult I do think that video is a way of providing more perspective but uh I I really have trouble seeing how Twitter is going to pull that off I am hopeful though because I think that if anyone is doing it uh or can do it rather I should say Elon can do it I I'm very bullish about that so I'm very excited for Elon but I think there are a lot of challenges in becoming a new YouTube It's personally not something that I would invest in I own one share of Twitter it's not an investment that I would make I think I'm down 50 day one uh on my ownership of Twitter at 5420 uh yeah I do think that there are a lot of uh costs that need to be cut and uh I am not exactly sure how tweets are as monetizable as videos ever which it makes sense why then Elon might be considering moving into the direction of a of a video style platform but I think you have a lot of competition there so the really remaining option here is okay what if you just lay off so much staff that you take the company down to a skeleton crew rather than having 7 000 employees or 7 500 employees roughly which you do now uh you go down to I mean this sounds ridiculously extreme but I'm going to purposely go extreme you go down to 500 and and almost everything is just handled algorithmically or through Bots and any kind of moderation is is publicly shown and intervention is extremely limited really what you need now is is a sales team that's almost all you need I mean you need a small engineering team and and a sales team and the sales team's job is to bring in marketers and brand partners for your creators because your creators are the backbone of the platform they are what bring viewers back and without the creators there are no viewers so you you build it and they will come and people will continue to come back as long as the perspective that you share or the Creator share is is valuable and so I think that's the the goal of everyone as a creators provide value but the goal of the platform is to incentivize providing value because again if there's no money to be made then what's the point of bringing quality value uh to to that platform it just makes sense to say on YouTube in that case so speaking as a Creator I'm personally very skeptical I'm very excited because I'd love to see what happens but I can't say that I'm optimistic although I will always wish Elon the best that this is not you know by no means do I ever consider myself a you know a hater I think of myself as uh as as just a a reasonable entrepreneur who has hope but also has a check of realism so I wish everyone the best who's an investor in Twitter this video is not Financial advice if you want more not Financial advice check out my programs on building your wealth linked down below especially our fundamental live streams that we do every single morning the market is open thanks for watching we'll see in the next one
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