TEK2day

Operating at the Intersection of Technology and the Capital Markets

    Category: Media & Entertainment

    • META, META You Can Do Better

      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.

    • Netflix: Where’s The Growth?

      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…

    • AT&T, Telcos and Cable Cos

      I traded emails with a friend over the weekend regarding AT&T and telcos/cable cos in general. My general take is that I would not touch any of these companies. These are slow growth businesses that carry significant debt, too much debt in fact considering where interest rates are. Many of these companies will be required…

    • Credit Spreads Will Widen The Longer The Fed Maintains Elevated Rates

      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…

    • Apple’s Primary Driver Is Price Increases

      Recall when Apple (ticker: AAPL), stopped reporting unit sales for its hardware products back in 2019? That’s when Apple essentially admitted that it was no longer a growth company. I have a difficult time squaring Apple’s muted unit growth with its valuation. Despite Apple’s efforts to convince the world otherwise, it remains a hardware company.…

    • What May A Disney Deal Look Like?

      Let’s assume that Disney sells off unwanted legacy, linear networks and what remains is the Media & Entertainment business and the Parks business. What may a deal look like with Amazon, Apple, Google or Xbox/Microsoft? This is a follow-up to our recent article: It Is Expensive Selling To Consumers. Just Ask Disney CEO Bob Iger.…

    • It Is Expensive Selling To Consumers. Just Ask Disney CEO Bob Iger.

      There was a time when it seemed that content producers believed that the answer to generating revenue was to go direct-to-consumer via a proprietary streaming platform and to do so without a distribution partner. That is a very expensive proposition. For example, the WWE (ticker: WWE), launched its 24/7 streaming network – WWE Network –…

    • Generative AI Across Activision Post-Deal Close

      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…

    • Will Instagram Threads Kickstart META’s Growth?

      I believe that Instagram’s Threads product has a better near-term growth opportunity than META’s misguided metaverse bet. Will Threads help META steal mojo from TikTok? I doubt it. Don’t be fooled – TikTok is the competitor that META is concerned with, not Twitter. We live in a video-based world and most social media growth will…

    • Nothing To See Here. Or Is There?

      The equity market is too sanguine. Things feel too still. Could this be the calm before the storm, or, will another round of Fiscal stimulus and Fed easing abort the storm on the horizon, fiscal debt and inflation be damned? It is difficult to make a call on the fundamentals whether it be the price…