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Loup TV 130: Netflix Casts Shadow Over Tech Earnings

Loup TV 130: Netflix Casts Shadow Over Tech Earnings

Takeaways:

  • Netflix missed their guidance for December and guided March sub adds down by 64%. While it’s common for Netflix to guide below the Street, the magnitude of the guide down is greater than typical.
  • Netflix is now trading at 6% higher than the pre-pandemic price which is testimony to the market focus for future growth.
  • Brace yourself, these results cast a shadow on the rest of tech. We will be paying most attention to the true tech barometers — Apple (reports on January 27) and Google (reports on February 1). Until Apple reports and we hear from the Fed, the tech market will be edge. 

Disclaimer

Apple, Google, Netflix, Themes
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Loup TV 129: Welcome to Correction Territory; Sony is Misunderstood; There’s More to 5G Than Speed

Loup TV 129: Welcome to Correction Territory; Sony is Misunderstood; There’s More to 5G Than Speed

Takeaways:

  • NASDAQ entered into correction territory, down 10% from its highs. The team at Loup thinks this is not over — however, we’re closer to the end than to the beginning. What’s most important is finding great companies at attractive valuations, versus trying to guess what the market will do over the next month. 
  • Sony’s stock drops 13% on the Microsoft-Activision news, which means Sony’s gaming business lost about a third of its value. We think this is an overreaction given that PS3 is leading the market share and that Sony has a world-class content library.
  • 5G deployment in the U.S. keeps running into hurdles, and it will take longer to get to the nirvana 1GB download speeds. What’s more important than speed? It’s what companies and developers will be able to build atop 5G to move humanity forward.

Disclaimer

Themes
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Loup TV 128: Microsoft Takes Content to New Level

Loup TV 128: Microsoft Takes Content to New Level

Takeaways:

  • Microsoft announces its largest acquisition yet: Activision for $68.7B ($95/share) — in an all cash deal.
  • The sheer size of this transaction underscores the adage that content is king is stronger than ever. Given the significance of gaming in the metaverse, we see this as the most significant metaverse-based news since Facebook’s name change. Getting the deal done won’t be easy as lawmakers will likely take offense given Microsoft’s most recent aggressive step into gaming.
  • In the end, we believe Microsoft prevails and gets the deal done. That said, don’t hold your breath — this will likely take 6 months to sort itself out.

Disclaimer

Gaming, Microsoft
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