As summer 2021 fades, we thought it would be useful to highlight some of the key issues we are thinking about: Is Disney sticking with ESPN as it seeks to license the brand to a sportsbook? Has sports betting competition gone too far relative to financial opportunity? Why Netflix has structural advantages as it enters the video game space. Does the upcoming retrans/affiliation negotiation between Comcast and Disney hold the keys to resolving Hulu ownership once and for all? Facebook less likely to succeed…
We believe AT&T’s wireless and fiber growth opportunity is not being properly recognized by the market. AT&T’s free cash flow yield is more than 11%. That’s too high empirically and relative to peers, especially within the context of its strong and increasingly predictable wireless performance. While AT&T might be shedding dividend-focused investors in the near-term,…
Disney is set to report fiscal Q3 June 2021 earnings after the close this evening. We thought it would be useful to lay out the key questions and issues we are thinking about heading into earnings. 1) Why Shift Back to Exclusive Theatrical Window? Given the slow recovery of movie theater attendance driven by a…
Business is back to usual at WWE, as the company finally returned to the road after seventeen months of fanless shows. The company managed well financially during the period, which should be capped by a sizable Q2 earnings beat. The COVID-19 period was not otherwise uneventful for WWE, as the company overhauled management and refocused…
We are raising our one-year price target on BUY rated Snap Inc. to $84, which yields 33% upside from current levels. Our new PT is based on 35x 2024 EBITDA discounted back at 15% for two years, which equates to 20x 2022 revenues. As we project revenues to still be growing at or above 40%…
We are increasing our price target on Iridium to $54 from $50 and our expectation for revenue growth and share repurchase is rising. Fundamentals on track Iridium is accelerating growth from the broadening of IoT service adoption and the ubiquity of its differentiated global coverage. IoT growth accelerated to 20% in Q2 from 4% in…
Here are the ten key questions investors should be asking management on tonight’s Netflix Q2 2021 earnings interview (our Q1 2021 questions can be found here). When Do You Foresee Normalized Sub Growth? What needs to happen to return to annual subscriber growth in the mid-20 million range? Related, we presume if you were not confident…
Dish played an integral role in T-Mobile’s ability buy Sprint. However, the relationship between the two companies quickly soured. Dish is effectively dumping T-Mobile as its network partner in favor of AT&T. This creates a new revenue growth headwind for T-Mobile and could fan regulatory intervention over its synergy plans. Conversely, it not only provides…
We are downgrading American Tower and Crown Castle to Neutral from Buy, on the back of a rally in treasuries, a contraction in the spread of AFFO yields to the 10 year treasury and a lack of near-term events that can drive better than expected growth. We recommend investors interested in maintaining exposure to the…
The entire ad market may be hot right now, but the connected TV (CTV) ad market is especially on fire. Brands are looking for new ways to reach consumers, with linear TV viewership continuing to both evaporate and age up to increasingly unappealing demos. Revenue growth is surging at sixteen year old YouTube (table embedded…
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