Operating at the Intersection of Technology and the Capital Markets
Tag: Snap
It will take years to wash away the fiscal and monetary excess of 2020-2022 - a period of unprecedented growth in the money supply. This period was the cherry on top of a decade-plus of Quantitative Easing which got investors hooked on cheap debt and the Fed put. Investor psychology won't change overnight. Investors are … Continue reading A Climbing 10-Year Treasury Yield Will Eventually Crack The Market
The NASDAQ is still overvalued. Companies like SNAP, ZI and PAYC that have taken valuation hits over the past week due to disappointing earnings still have far to fall. The large Tech companies will also experience a valuation reset as rates remain elevated and as the money supply shrinks (QT), albeit much more slowly than … Continue reading Equities Will Eventually Reflect Economic Reality
VICE Media: from a $6 billion valuation to filing for bankruptcy. Vice Media (private), is a great example of a Zombie company that can't survive without easy monetary policy. 8-10 years ago Vice was a media darling that could do no wrong. Former Viacom COO Tom Freston viewed Vice and founder Shane Smith as the … Continue reading Watch The Zombies Fall
The WSJ reports that YouTube is negotiating with the NFL for exclusive rights to broadcast NFL Sunday Ticket. YouTube/Google and Amazon Prime (Thursday night NFL games), are essentially pursuing a U.S. audience with their respective NFL strategies. The NFL ought to court YouTube in particular given that YouTube - not TikTok, not Instagram nor Snap … Continue reading YouTube & The NFL
When you invest in a company (public or private), you're betting on the CEO and management team, not a product or service. A CEO can torpedo or lift a company's prospects overnight. Microsoft under former CEO Steve Ballmer and current CEO Satya Nadella underscores the importance of the CEO. Ballmer was a Marketing exec that … Continue reading Zuckerberg & The Metaverse Underscore Why CEOs & Management Teams Matter
AR, VR and other new product initiatives are not the answer for fixing SNAP. Ad Revenue lost to iOS changes is not coming back. Further, SNAP lacks META's scale and TikTok's "cool" factor which makes it impossible to command top Ad rates. Last, this is not exactly the optimal environment to be pitching Ads. Small, … Continue reading M&A Is The Answer For Snap
Apple's (ticker: AAPL), advertising revenue playbook may look something like this two-step plan: 1.) Provide Apple customers with the ability to turn off targeted advertising via their iPhones (Apple's ATT initiative HERE); 2.) Once the competition (Meta Platforms, Snap, Google and others), has been dealt a significant advertising revenue blow, subsequently insert Apple targeted ads … Continue reading Apple’s Ad Business Is About To Get Bigger
Ad Revenue models are predicated upon the type of discretionary spend that gets hit during economic soft patches. Twitter missed earlier today (the proposed Musk transaction and macro softness were the primary contributors in our view). SNAP also came in weak and pulled guidance. As we wrote earlier this month, Ad Revs, Consulting Revs and … Continue reading We Told You Ad Revs Would Come In Soft
Powell was confirmed for a second term as Fed Chair on May 12th. His nomination was held up for months in the Senate. Powell's confirmation will provide him with temporary courage - enough to talk in a hawkish manner, enough to take the Fed Funds Rate to 2% by summer's end - but not enough … Continue reading Jerome Powell Will Talk Tough This Summer
We compared Product Development/ Research & Development investment as a Percentage of Revenue for 20 Technology companies across a variety of subsectors. Our comparison focused on the December quarter. Click HERE to download the table as a PDF. Tickers mentioned: AAPL ADBE ADSK AMZN CRM CSGP FB GOOG IBM ICE MSFT NFLX ORCL PYPL SHOP … Continue reading We Compared Product Development Investment for 20 Tech Companies
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