FUBO

ViacomCBS Makes Big Bet on Streaming

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Image Source: ViacomCBS Inc – Fourth Quarter of 2020 IR Earnings Presentation By Callum Turcan After Viacom and CBS were reunited in December 2019, the new entity ViacomCBS Inc (VIAC) has finally started to gain some traction on the video streaming front. The service CBS All Access, which has since been rebranded as Paramount+, was largely a dud and did not gain the level of attention that Walt Disney Company’s (DIS) Disney+ service (more on Disney’s video streaming successes here and here), AT&T Inc’s (T) HBO Max service (AT&T’s video streaming growth strategy is picking up steam as we covered here), or Netflix Inc’s (NFLX) namesake service (more on Netflix here) were able to generate. For background, ViacomCBS’s operations include … Read more

AT&T’s Video Streaming Growth Story Is Starting to Take Flight

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Image Source: AT&T Inc – 2021 Investor & Analyst Day Presentation By Callum Turcan On March 12, AT&T Inc (T) hosted its 2021 Analyst & Investor Day event. In conjunction with the event, AT&T issued long-term financial and operational guidance which included a substantial upward revision in its expected HBO/HBO Max subscriber growth over the coming years. We continue to be big fans of AT&T as a high yielding opportunity and include AT&T as an idea in the High Yield Dividend Newsletter portfolio (more here). As of this writing, shares of AT&T yield ~7.0%. Background Information In June 2018, AT&T completed its acquisition of Time Warner which gave AT&T the keys to Home Box Office (‘HBO’). A pillar of AT&T’s … Read more

ALERT: Bull Raids, Short Squeezes and Highly Unusual Market Activity

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We are putting short investors on high alert! By Brian Nelson, CFA In late 2018, Valuentum published Value Trap, a book that warned to all that would heed its warning that a collapse in the traditional quant value factor was coming and that excessive volatility in the markets caused by price-agnostic trading–or those that aren’t paying attention to fair value estimate calculations–would only build and build to eventually reach extreme and irrational levels. The book, while hugely successful winning award after award, was largely ignored by the media, despite our best efforts to get the word out. Now, the chickens are coming home to roost. Image Shown: The book Value Trap warned about the impending collapse of the value factor, … Read more

We Expect Netflix to Turn Into a Free Cash Flow Generating Machine

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Image Shown: Netflix Inc’s global paid subscriber base is expected to keep growing at a decent clip going forward, though at a slower pace than in the recent past. Image Source: Netflix Inc – Shareholder Letter covering its fourth quarter and full-year earnings in 2020 By Callum Turcan The proliferation of video streaming services during the past decade accelerated in 2020 due to the coronavirus (‘COVID-19’) pandemic forcing households to stay indoors, which in turn drove up demand for economical forms of at-home entertainment. During the early days of the video streaming services industry, subscriber growth was driven largely by the “cord cutting” trend in which households traded out more expensive cable/satellite TV packages (sometimes referred to as “premium” TV … Read more

AT&T’s Outlook Is Getting Brighter

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Image Shown: An overview of AT&T Inc’s capital allocation priorities over the coming years and a snapshot of its financial position at the end of September 2020. Image Source: AT&T Inc – Third Quarter of 2020 IR Earnings Presentation By Callum Turcan The rollout of 5G wireless packages in the US combined with expected growth at its video streaming business has significantly improved AT&T Inc’s (T) outlook during the past few months. We include shares of AT&T in the High Yield Dividend Newsletter portfolio (click here to learn more about the High Yield Dividend Newsletter), and as of this writing, shares of T yield ~6.6%. Headwinds caused by the ongoing coronavirus (‘COVID-19’) pandemic weighed negatively on AT&T’s financial and operational … Read more

Update on High-Yielding AT&T

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Image Source: AT&T Inc – Second Quarter of 2021 IR Earnings Presentation By Callum Turcan The communications and media giant AT&T Inc (T) is pivoting back to its roots, a strategy that we think will pay off handsomely in the long run, though there have been plenty of rough bumps along the way. Management has finally found a strategy that AT&T can stick with. We include AT&T as an idea in the High Yield Dividend Newsletter portfolio and shares of T yield ~7.7% as of this writing (note that the company will rightsize its dividend in the coming quarters, resulting in a yield adjustment lower). Warner Bros. Discovery AT&T’s WarnerMedia segment is joining forces with Discovery Inc (DISCA) that will … Read more

Netflix’s Subscriber Growth Is Slowing Down, Competition Heating Up

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Image Shown: Netflix Inc’s paid subscriber base is expected to grow at a slower pace in the near term compared to the performance seen in recent years. Image Source: Netflix Inc – Shareholder letter covering the fourth quarter of 2021 By Callum Turcan On January 20, Netflix Inc (NFLX) reported fourth-quarter 2021 earnings after the bell. The video streaming giant met consensus top-line estimates and beat consensus bottom-line estimates last quarter as original content such as the South Korean TV show Squid Game (released September 2021) proved to be quite popular in markets around the globe and helped Netflix retain interest in its service. During Netflix’s latest earnings call, management noted that the violent Squid Game TV show had been … Read more