Operating at the Intersection of Technology and the Capital Markets
Category: Technology
TEK2day will soon move to a premium model. We are working through the mechanics. Pricing options will be $9.99 per month or $99.00 per year. Our content will remain similar - a combination of Technology-focused articles along with Capital Markets and Economic-related content. More to follow. -Jon
A key reason why I wrote yesterday that a Disney (DIS) sale would not be announced until the end of 2024 or in 2025 is that Disney has to be thinking about the Biden Administration's FTC head Lina Khan blocking a potential deal, whether it be for pieces of Disney such as ABC, or for … Continue reading A Disney Sale: The FTC and Potential Acquirers.
Disney (ticker: DIS) CEO Bob Iger will sell the company before he walks away. Iger will not appoint another successor after his 2020 appointment of Bob Chapek as CEO failed. Today, PepsiCo (ticker: PEP) CFO Hugh Johnston was named Disney CFO (read more HERE). View Mr. Johnston's experience HERE. My view is that Disney will … Continue reading Disney’s New CFO Is an M&A Guy
The Fed is likely done hiking its Fed Funds rate. However, the Fed ramped up its QT effort, purging its Balance Sheet of $40 billion of Treasuries this week, the most since it reduced its Treasury holdings by $43 billion the week-ended August 16th 2023. Treasuries: The Fed’s Treasury security holdings declined by $40.0 billion for … Continue reading The Fed’s Balance Sheet Reduction (QT) Update
My, how things have changed with Apple's valuation. We compared AAPL today versus 2015 from a Revenue growth and valuation standpoint. Apple grew Revenues 33% in the June 2015 quarter (see table below for details). Today, Apple's topline is shrinking. Fed Funds was essentially at zero and the 10 year Treasury yielded half what it … Continue reading Apple: Now vs. Then
PAYC shares are sharply off today, yet trade at 20x calendar year 2023 cash from operations, which we estimate at $450 million. That is a steep multiple for a company that is growing its topline at 10-15% and is likely to see growth further slow in 2024. In addition, I am not a fan of … Continue reading We Still Don’t Like PAYC.
WeWork (ticker: WE) plans to file for bankruptcy. The penny stock is down 53% today to $1.07. We have slammed WeWork's business model countless times over the years in these pages, both when it was a high-flying private firm as well as when it went public (WE shares peaked at $520.80 in October 2021). The … Continue reading WeWork Plans to File for Bankruptcy
AI - what a mess. Executives and investors regularly refer to all advanced automation as "AI", regardless of whether the technology in question refers to machine learning, deep learning, neural networks, natural language processing, computer vision / image recognition, voice recognition, generative AI and so on. The good folks at Korn Ferry recently published the … Continue reading AI: The Blind Leading The Blind
Layoffs have ticked up in October as compared to September. I expect a step function up in layoffs in January 2024 as I believe that a number of CEOs, CFOs and Boards have yet to find religion around higher interest rates. We are not going back to a zero percent Fed Funds rate in Q1, … Continue reading A Modest Uptick In October Employee Layoffs. I Expect Layoffs To Spike Higher In January.
We told you that ZoomInfo (ticker: ZI) shares were overvalued in August (HERE) despite the 25% haircut the day we published. Today's 15% haircut gets ZI shares in a more rational valuation space. However, I have always questioned how ZI calculates "organic" revenue growth, particularly when it was regularly rolling in acquisitions. Now that it … Continue reading We Have Never Liked ZoomInfo (ZI)
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