TEK2day

Operating at the Intersection of Technology and the Capital Markets

    Category: Mergers and Acquisitions

    • What Next for Apple?

      VisionPro – Apple’s mixed reality platform is what’s next for Apple. However, the price point needs to come down before the high-end headset becomes ubiquitous. Assuming the price point comes down over the next several years, Apple will need glue to reel customers in and to drive usage. That means Apple will need to heavily…

    • Tech Companies & Strategic Glue

      It is always a good idea for companies to add incremental products and services that customers value. These incremental products and services enhance the value of a given company’s product and service portfolio. They act as “glue”, which mitigates customer churn, drives usage and more.

    • What’s Next For WarnerBros Discovery?

      Reading through WarnerBros Discovery’s (ticker: WBD) financials… it makes lots of sense for WBD CEO David Zaslav to find a strategic partner.

    • ZoomInfo (ZI) Won’t Be The Last Outlook Haircut

      Investors finally figured out that ZoomInfo (ticker: ZI), wasn’t really a long-term growth story and that once corporate buyers began to pull back on Sales & Marketing spend, ZI would feel the pain.

    • The Fed’s Dance of Death

      The tune Fed Chair Jerome Powell is whistling is called “Dance of Death”, and portends the death of commercial banks, especially small commercial banks. A close look at the chart below (click caption to expand), shows that as the Fed has raised its Fed Funds rate (blue stepped line), Retail Money Market Funds AUM has…

    • Perhaps Disney Has Already Been Low-Balled?

      Perhaps Amazon and others have already low-balled Disney regarding an acquisition of the Company? I know if I were Amazon, YouTube or Apple, and I was to lob an offer into Disney, I would not impute much value to ESPN. Sure, ESPN is a widely-recognized brand, but so is Amazon, YouTube and Apple. Further, ESPN…

    • 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…