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
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
When Apple (ticker: AAPL) CEO Tim Cook takes the stage tonight at 8pm ET, recognize that there would be no Apple without co-founder Steve Jobs. There would be no iPhone... There would be no Mac product line... There would be no Apple Watch... There would be no Apple Services... There would be no new HQ … Continue reading The Next Steve Jobs?
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
We reviewed share buyback activity for Amazon, Apple, Google, Meta and Microsoft. Generally speaking, share buyback activity is down versus a year ago given elevated share prices, higher interest rates/cost of capital and an uncertain macroeconomic environment. We reviewed share buyback activity for AMZN, AAPL, GOOGL, META and MSFT at 3, 6 and 12 month … Continue reading Share Buyback Activity for AMZN, AAPL, GOOGL, META and MSFT.
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 … Continue reading What Next for Apple?
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. Amazon (ticker: AMZN), Prime: In the case of Amazon's Prime … Continue reading Tech Companies & Strategic Glue
Apple's Product Revenue has declined in 4 of the past 5 quarters on a year-over-year basis. iPhone sales have declined in 2 of the past 3 quarters year-over-year. This despite the fact that Apple devices get more expensive over time. Apple is no longer a growth company given its size and the maturity of its … Continue reading I Don’t Get Apple’s Valuation
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?