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Anthropic IPO Primer

Downgrade Cogent to Sell

We do not expect Cogent (CCOI) to generate enough free cash flow to fund its dividend, let alone its growth. We expect this to require the company to perpetually increase its debt at prevailing interest rates. Unfortunately, we also expect Cogent’s EBITDA in 2028 to be lower than 2024 pushing debt leverage over 6x in…

Is Paramount Really Trying to Buyout NAI and Six Other Questions for Earnings Tonight

When Paramount reports Q4 2023 tonight, we expect management to be excited about the success of recent live events on CBS including Super Bowl LVIII, NFL Playoffs and Grammys, on top of the recent performance of their movie One Love. But these are distractions from the far larger issues that have the entire company’s employee…

Warner Bros. Discovery Keeps Cutting Earnings Expectations, How Soon Until They Pivot?

Over the past few years, Warner Bros. Discovery shares have fallen dramatically as management lowered 2023 earnings guidance projections several times, despite the help of dramatic cost-cutting efforts and an aggressive shift to licensing content to third-parties such as Netflix (versus keeping all their content for their own vertically-integrated streaming service, Max). Below is a…