Your initial reaction is we have gone “cuckoo for Cocoa Puffs” but let’s slow down and think about what Comcast is doing versus its peers. First off, we remain adamant that unless legacy media companies are willing to completely disrupt their legacy businesses and go “all-in” on SVOD (which none are), it is far better to…
We increased our Motorola Solutions price target to $170 primarily as a result of moving our estimates out to 2020. We believe Motorola Solutions can sustain mid-single digit revenue growth in 2020 as it continues to expand and deepen its presence in 911 call centers with advanced technology solutions. Motorola’s acquisitions and investments in new…
We are concerned that the Apple event today could trigger a sell-off in the stock. Apple’s stock has rallied 34% since pre-announcing weaker than expected FQ1 results on January 2nd. That is more than twice the move in the S&P 500 and more than the 20% move in FANG. Its P/E multiple is now nearly…
Feels like deja vu all over again as DirecTV, now owned by AT&T, could be forced to drop Viacom’s suite of cable networks this coming weekend. DirecTV dropped Viacom networks back in 2012 and it did not end well for DirecTV, with competitors seizing on the opportunity to capture market share at DirecTV’s expense (see our…
Apple has long had ambitions to play a more direct role in the video ecosystem; remember Tim Cook’s “intense interest” commentary from 2012 (link). While Apple launched two TV series inside the Apple Music app in the summer of 2017, Carpool Karaoke (without James Corden) and Planet of the Apps, that was simply an early dip of…
The tech giants have continued to wage a war for consumers’ time – leveraging their scale, technical infrastructure and balance sheets to gain hegemony throughout the media universe. Collectively, FAANG’s platforms have had a hand in the disruption of video, music and publishing, with serious ramifications for legacy players. Their impact on gaming has been less direct, with Amazon’s Twitch…
We are upgrading Snapchat to BUY from Neutral, with a $15 price target based on 25x 2022E adjusted EBITDA discounted back 2 years at 15%. Your initial reaction is likely why now and what changed, as virtually everything that could go wrong for Snapchat over the past couple years since going public has gone wrong. …
Over the past four years, vMVPDs have grown from literally non-existent to approximately 8 million subscribers (in size order: Sling, Hulu, DirecTV Now, YouTube TV, Sony Vue, FuboTV and Philo). The vMVPD ramp has helped mute the pressure on programmers (broadcast and cable networks) from cord-cutting. However, as we detailed in our Feb. 13th blog…
With Q4 earnings season for TMT complete, Brandon Ross and I thought it would be useful to pull out the most noteworthy and/or cringeworthy management quotes from calendar Q4 2018 earnings calls. Contrasting management commentary across the broader TMT sector helps investors understand the relative positioning and strategy of major players. To spice it up a bit, we have…
The arbitrator’s decision in the Fox Bones lawsuit was shocking to the broader content industry based on the size of the award: $179 million ($50 mm in actual damages and $129 mm in punitive damages) tied to FOX’s failure to properly compensate talent based on the show’s overall profitability (Bones ran 12 years on FOX and is its longest…
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