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
YouTube ought to carry a standalone Enterprise Value of approximately $300 billion. YouTube's Ad business: YouTube's advertising business is a $30 billion Revenue business (we annualized YouTube's June quarter Ad Revenue). YouTube's Subscription business: YouTube's subscription services (YouTube TV, YouTube Premium and YouTube music; I subscribe to all three) generate approximately $17 billion in annual … Continue reading YouTube Is A Bigger Business Than Netflix. Why Not Spin Out YouTube?
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 … Continue reading Perhaps Disney Has Already Been Low-Balled?
AI-powered convenience was the takeaway from this year's Google I/O conference. When we use "AI" in this context we are speaking of Google's Natural Language capabilities that leverage the company's Large Language Models (LLMs). These models (Bard for example is built upon an LLM-based platform), enable users to engage with their devices using natural language … Continue reading AI-Powered Convenience at Google I/O ’23
YouTube is larger than Netflix (NFLX). We estimate that YouTube generates annual revenue of approximately $43.3 billion (versus fiscal year 2022 Revenue of $31.6 billion for Netflix). 2022 YouTube Ad Revenue (as reported): $29.2 billion. YouTube TV revenue: $3.5 billion. (We assumed 4 million YouTube TV subscribers at $72.99 per month. The $72.99 price is … Continue reading How Big Is YouTube? It’s Larger Than Netflix.
The most interesting thing about Netflix (ticker: NFLX, due to report April 18th at 4pm ET), is its Co-CEO model. Will it work long-term? Time will tell. Co-CEOs usually do not work. Today Ted Sarandos and Greg Peters share the CEO title at Netflix. The way I view NFLX's leadership model is that Sarandos is … Continue reading Will Netflix’s Co-CEO Model Work?
GOOGL shares look attractive. 11.4x EV/Operating Cash Flow and an 8% cash flow yield for a quality company that I would rather own versus overvalued Tech stocks like PLTR, COIN and scores of others. If you ask me, GOOG is going to gain share across its Remote Server business (GCP), and its Productivity products (Docs, … Continue reading Google Looks Attractive
Sure, if Alphabet (ticker: GOOGL), were to spin off YouTube and Google Cloud it would be easier for Wall Street to value the component parts. However, I'm not sure that YouTube or Google Cloud ought to spin-off. Here's why: Google Cloud: Google Cloud consists of Google Cloud Platform (GCP is the comp to AWS and … Continue reading Spin-Off YouTube and Google Cloud?
Apple is going to win the VR/AR/MR war vs. Meta. Apple simply has more elements it can leverage across its ecosystem to deliver a superior user experience delivered through its forthcoming headset (June 2023). Microsoft will be a bigger VR/AR/MR player than META in due time given the combination of its Productivity apps (perfect for … Continue reading Apple vs. Meta Quest 2
It feels like META gave these poor performance reviews in order to not get crosswise with California employment law ahead of more planned employee terminations. My view is that META will never find its way back in terms of making Facebook and Instagram the "destination" platforms they once were. Facebook lacks a product identity. Instagram … Continue reading META Is Lost