Jason Calacanis on CNBC Squawk Alley 6/14/16: Microsoft buys LinkedIn, Alibaba, Warriors/Cavs

TL;DR

The analysis discusses the uncertainties surrounding the Chinese economy, caution regarding investing in Chinese stocks, the potential success of Alibaba, the Microsoft acquisition of LinkedIn, and predictions for the NBA Finals.

Transcript

watch Susan Lee back at HQ uh Jason I'll throw this to you first I mean obviously big Ambitions as Susan said but also a very long time Horizon what do you do with some of these projections well um I think that nobody has any real Clarity on what's going on in China remember this isn't even a democracy and you have a company hanging out there you k... Read More

Key Insights

• 🖤 Understanding the Chinese economy is challenging due to lack of transparency and corruption.
• 🎮 Investing in Chinese stocks can be risky due to government control and legal uncertainties.
• 🔬 Alibaba has potential for success but caution is advised when investing in Chinese stocks.
• 👻 Microsoft's acquisition of LinkedIn allows for integration of valuable data and services.
• 📈 The Enterprise graph at LinkedIn can provide insights and efficient communication within organizations.
• ❓ YouTube's success after being acquired by Google is compared to the potential for LinkedIn under Microsoft.
• 😶‍🌫️ Microsoft's efficiency in cloud computing can benefit LinkedIn's cost structure.

Questions & Answers

Q: Is owning stocks in China risky due to government control and lack of transparency?

Yes, owning stocks in China carries risks due to government control, lack of transparency, and potential legal issues for investors and companies. It is advised to be cautious and limit investment in Chinese stocks.

Q: Can Alibaba succeed in the face of competition from domestic and foreign companies?

As long as Alibaba doesn't face significant threats and competition, it has a favorable position in the growing middle class and government emphasis on domestic consumption in China. However, uncertainties and risks still exist.

Q: What are the possible benefits of Microsoft's acquisition of LinkedIn?

Microsoft's acquisition of LinkedIn allows for integration of Skype and Yammer into the Enterprise graph. This integration can provide valuable insights on companies, their employees, and enable efficient communication and collaboration within organizations.

Q: How can Microsoft and LinkedIn efficiently merge their online identities and services?

It remains to be seen how Microsoft will integrate Live ID and LinkedIn ID. Possibilities include merging the identities or ensuring seamless cooperation between the platforms. The aim will likely be to encourage users to work on Office documents within LinkedIn and eventually sign up for paid Microsoft Office 365 accounts.

Summary & Key Takeaways

• The speaker highlights the difficulty of understanding the Chinese economy due to lack of transparency, manipulation, and corruption.

• They caution against owning stocks in China and operating in the challenging environment.

• The speaker acknowledges Alibaba's potential success but advises caution and limited investment in Chinese stocks.