Innovation

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Can Amazon really justify a $1 trillion valuation?

Last week, Amazon’s stock price crossed the $1,000 threshold. In the process, its market capitalization nearly reached $500 billion. And of course, the next question was, when will Amazon become the world’s first trillion dollar company? Let’s look at Amazon’s financial performance, and see what might have to happen to make the company worth a
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Why did NVIDIA's stock jump 30% in the past two weeks?

NVIDIA is a company well-known to 1990’s gamers. It quickly built a reputation for making top tier computer graphics cards. Much more recently, it has used the heart of its graphics technology to make some exciting headway in the field of artificial intelligence (AI). In the past two weeks alone, NVIDIA’s stock price is up
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ESPN layoffs, and the creative destruction of sports capital

On Wednesday, ESPN, the sports broadcasting behemoth, laid off dozens of employees. Some were highly recognizable on-air personalities. Others were lower profile reporters and journalists. It’s a visible demonstration of the free market’s powers of creative destruction. ESPN has decided it no longer gets sufficient return from its own marginal talent It’s tough to think of layoffs
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Artificial intelligence started with the calendar and abacus

I wrote earlier this week about why artificial intelligence (AI) is such a big deal. Using Kevin Kelly’s example, I claimed artificial intelligence will have a bigger impact than electricity. My argument was that electricity helps human perform manual tasks. Artificial intelligence helps us perform cognitive tasks. Electricity makes us stronger. Artificial intelligence makes us smarter.
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Artificial intelligence will be bigger than electricity

I hate buzz words as much as the next person. I also hate tech fads. It would make sense, then, that I despise the artificial intelligence (AI) gold rush. But I don’t. I really do buy into the AI excitement. And Kevin Kelly has a great analogy to explain my thinking. Think of artificial intelligence
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Why is Johnson & Johnson so much more valuable than Pfizer?

Earlier this week, I looked at the valuations of 5 large pharmaceutical companies: Johnson & Johnson, Pfizer, Merck, Amgen, and Eli Lilly. I was trying to get an idea of which one was the most “over-valued”. Long story short, Johnson & Johnson and Amgen are the most expensive, relative to their asset base. That doesn’t necessarily
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The Patriots, the 49ers, and one way sports is different than business

You want a proven path to innovation? Find good ideas in one context, and try to apply them in a different context. The Wharton School gives us some examples: At Reebok, the cushioning in a best-selling basketball shoe reflects technology borrowed from intravenous fluid bags. Semiconductor firm Qualcomm’s revolutionary color display technology is rooted in
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Big corporations and Robinson Crusoe have opposite problems

I’m reading The Dao of Capital by Mark Spitznagel. The main idea of the book is that in order to win in the long term, you have to lose in the short term. You have to follow a “roundabout” path to success. Spitznagel’s telling of the story of Robinson Crusoe To demonstrate his point, Spitznagel uses
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Job loss from automation has been a fear for 100 years

Robots are coming for our jobs. That’s what we’ve been told. And it’s true, to an extent. I could cite any number of these doomsday scenarios. I’ll choose this one from David Ignatius at The Washington Post: The deeper problem facing the United States is how to provide meaningful work and good wages for the
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No, Wall Street Journal. We're not out of big ideas.

The Wall Street Journal ran a series of articles on Tuesday about the “Innovation Paradox”. The first article was written by Greg Ip, and was titled “The Economy’s Hidden Problem: We’re Out of Big Ideas”. I could not disagree more. But before I dive in, let me mention what the article is about. Ip shows
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