What Companies Will Come out of This Crisis Stronger?
It’s a foregone conclusion that we are in a recession. Jobless claims hit an all-time record this week, the stock market has had its fastest bear market on record, everything feels like it is going to shit. Things look terrible right now. But, hopefully, as with most economic crises, there will eventually be a light at the end of the tunnel. If not, well, we got bigger fish to fry. The financial news has been talking non-stop about stocks doing well during this crisis. Turn o
Is It Smart to Bet Against Netflix?
I recently finished the book Netflixed, by Gina Keating. Besides being a fantastic read, the book had plenty of insights into the company’s management team and business model. It is a must-read if you are long or short the stock (disclosure: I’m neither). The book was published in 2012, so it misses the last seven years of Netflix’s history. However, I think the story holds up well even with the TV landscape changing dramatically during that time. Reed Hastings is still the C
CCM Ep. 59: How to Make a Billion Dollars in America
No interview this week, so we dove deeper on some news topics from the past week. I hit Facebook Pay, which I think will be additive to the War on Cash companies (Square, PayPal, etc.) instead of taking their business. Ryan dug into the latest developments in the streaming wars and why the Apple subscription bundle is a great idea. Other Segments this Week: What $28 billion business should Buffett buy? How to make a billion dollars in America (wrong answers only) FMK between
Disney, Netflix, and Sports
Why would you need anything else? At the Apple event this week, they announced the price point for their video streaming service: $4.99 a month, and free for a year if you buy a new Apple device. That’s a great deal for consumers, especially compared to the pricier streaming options like Netflix or HBO. The problem is, I can’t come up with a reason why anyone would want to subscribe to it. Demand for video content has already been filled, and Apple is coming in with no season
How do Uber’s Financials Compare to Other Tech Giants?
*You can find all the historical earnings numbers on each companies Investor Relations page. Uber, since going public, has been a controversial stock. Many prominent analysts doubt their business model, while some think they are just valued too highly. Others, like the Motley Fool, are long the stock and think it has a chance to be another tech giant. Personally, I can’t make up my mind. I’m fairly confident Lyft is a terrible business (zero-brand, terrible margins, and runni
How High Can Netflix Raise Prices?
With news out this week that AT&T’s streaming service will cost $16-$17 a month, investors have to be asking themselves: how high could Netflix raise prices before they lose subscribers? Why should they be asking that? Because the answer will determine where the stock price will be in 3-5 years. As they’ve transitioned to spending more and more on original content (now the biggest spender in the world), the video streaming pioneer has been able to raise prices around 5% per y
Disney is Treating Streaming as a Loss Leader
At a media event on April 11th, 2019, investors finally got some information on the highly-anticipated Disney+ streaming service. It is going live on November 12th, will cost only $6.99 a month (nice), and will be kids and family focused. Wall Street apparently loved the announcement, with Disney shares up over 10% during intraday trading. The beautiful thing about streaming for Disney, at least from an investors perspective, is that they can treat it as a loss leader. The en