Microsoft closed its Activision acquisition. As we wrote on August 7th - Activision will add strategic glue to MSFT's Xbox platform by adding hit gaming content such as the Call of Duty franchise. We are fans of vertical acquisitions. The complementary pieces - once combined - have the ability to differentiate the acquiring company from … Continue reading Microsoft’s Activision Deal Adds “Strategic Glue” To Its Xbox Platform
We have folded our CEORater-related content under our TEK2day brand. TEK2day will publish more content to YouTube in the coming weeks. Our YouTube content won't necessarily be published as a TEK2day podcast. We occasionally publish our content to LinkedIn, but not all of our content. The best way to find our content is here at … Continue reading TEK2day: All Things Technology & Capital Markets-Related
We don't write frequently about U.S. Labor data because it is junk data. Most Government survey data is in fact garbage. I can't think of a Government data set that I believe is a quality data set. The Labor data that the BLS publishes lags. It is better to watch what companies are doing. From … Continue reading Unemployment Will Get Worse Before It Gets Better
Amazon, Apple, Disney, Google, Meta, Microsoft and Netflix have an advantage over other content companies given their size. By size I am primarily referring to market cap and size of balance sheet. Apple (AAPL, $2.94 Trillion market cap) and Microsoft (MSFT, $2.43 Trillion market cap) are in a league of their own with their nose … Continue reading Apple’s VisionPro Provides A Defensible Edge In The Content Space
Reading through WarnerBros Discovery's (ticker: WBD) financials... it makes lots of sense for WBD CEO David Zaslav to find a strategic partner. WBD is undersized in its direct-to-consumer ("DTC"), business - it needs more proprietary content and reach. WBD has approximately $47 billion in debt ($3 billion short-term, $44 billion long-term). An acquisition of Endeavor … Continue reading What’s Next For WarnerBros Discovery?
META's Threads traffic has fallen off after a strong start in early July (blue line in the chart below). Zuckerberg needs to focus less on jiu-jitsu and more on META's product portfolio. Source (HERE). Does META have world-class Product Managers? One look at each product and the answer is a resounding "NO!" Start there. Hire … Continue reading META, META You Can Do Better
Netflix (ticker: NFLX), needs a growth engine. The table below is a bit of an eye chart, but what it tells you is that in Q2 2023, only Netflix's LatAm region had solid Average Revenue per Membership growth at 8% adjusted for currency. The U.S. and Canada had only 1% growth, EMEA (1)% and APAC … Continue reading Netflix: Where’s The Growth?
Microsoft (ticker: MSFT) added $116 billion to its market cap yesterday as it announced that MSFT 365 users would be required to pay an additional $30 per month to use the AI-enhanced version of its productivity apps - Copilot. We wrote about Copilot back in March (HERE). Yes, AI-enhanced productivity applications by Microsoft and Google … Continue reading AI and Equity Dilution During Bubble Times
If you plan to run the credit risk exercise that I mentioned at a high level last week (HERE), the exercise is not a simple one. For example, if Company ABC issued a 5-Year note in August 2020 when the 5-Year Treasury was at 0.19% and credit spreads where at "Y", it would be incorrect … Continue reading Credit Spreads Will Widen The Longer The Fed Maintains Elevated Rates
Now that Microsoft (ticker: MSFT) has received approval to acquire Activision (ticker: ATVI, better luck next time Lina Khan), I am curious as to what kind of operating leverage Activision may enjoy as Generative AI is deployed more deeply throughout the organization post-deal close. Video game publishers have been using AI for years to render … Continue reading Generative AI Across Activision Post-Deal Close