When WWE launched the WWE Network in 2014, direct-to-consumer was not in the vocabulary for most traditional media companies and content creators. The idea that WWE could circumvent MVPD gatekeepers to make more money by offering significantly more value to its audience was met with skepticism from investors and industry executives alike – never mind…
The COVID-19 pandemic has fundamentally changed the way we live, work, interact and entertain ourselves. As we rapidly adapted to life at a physical distance, technology has replaced critical elements of the real world. Almost as soon as lockdowns began in March 2020, the video game ecosystem not only surged in engagement, but took attention…
Ahead of Verizon’s Q4 2020 earnings call tomorrow morning we wanted to lay out nine questions investors should be asking management as we enter 2021. 1. What Is The 3-year Capital Budget? We expect Verizon to be the leading buyer of spectrum in the C-Band spectrum auction, adding 100 MHz to its existing 133 MHz…
After a dramatic surge in Netflix’s stock price in 1H 2020, shares have been effectively stuck at the ~$500 level over the past six months. The recent underperformance has largely been driven by fears of a COVID-19 pull-forward creating challenging comps for 2021 and rising concerns about intensifying streaming competition. While there is little doubt…
We are lowering our one-year target price on Fubo to $6.50 from $8 and maintaining our SELL rating, based on a 7.5x multiple of 2025 advertising contribution margin discounted back at 15% for four years. The change from our prior target is based on the assumption that Fubo will need to raise at least $1…
Happy New Year and good riddance to 2020. As always, we are kicking off TMT coverage in the new year by laying out our top predictions and events to watch for in 2021 – what we call our #Top21for21. To see what we got right and wrong in last year’s Top 20 list for 2020, it can be…
In early May, we downgraded Disney to SELL (link). Our call has been dead wrong. At the time we focused on how the market under-appreciated the impact of COVID-19 on fiscal (September) 2020-2021 earnings. We knew numbers needed to come down significantly and expected the stock to follow, especially as leverage far exceeded historical norms.…
As it turns out, vMVPD’s really did not offer much of a fresh start for the multichannel video industry. As these services emerged, the hope was to offer consumers better price / value bundles by starting the channel offerings from scratch. For the most part, that hope is gone and vMVPDs are looking more like…
Happy New Year! We had a lot to say about tower stocks in 2020, but stopped short of making formal recommendations as valuations rose quickly following the approval of T-Mobile’s acquisition of Sprint which, in turn, triggered overly optimistic domestic growth expectations. The end of year sell-off in tower stocks and digestion of higher than…
Radius Global is a new type of wireless infrastructure investment opportunity. It owns the property under wireless towers and generates tower-like revenue escalators. Radius pays no taxes because it’s still in the early stages of consolidating a global portfolio of assets, but we believe REIT status is inevitable. Management is top notch. The $13 stock…
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