In a series of posts over the course of the last year, I argued that you can value users and subscribers at businesses, using first principles in valuation, and have used the approach to value Uber riders, Amazon Prime members and Spotify & Netflix subscribers. With each iteration, I have learned a few things about user value and ways of distinguishing […]
On May 9, 2018, Walmart confirmed officially what had been rumored for weeks, and announced that it would pay $16 billion to acquire a 77% stake in Flipkart, an Indian online retail firm, translating into a valuation of more than $21 billion for a firm founded just over ten years ago, with about $10,000 in […]
It was just over two weeks ago that I started my posts on the FANG stocks, starting with Facebook, which I decided to buy, because I felt that notwithstanding its current pariah status, its user base was too valuable to pass by, at the prevailing market price. I then looked at Netflix, a company that […]
In my last two posts, I looked first at the turn in the market against the FANG stocks, largely precipitated by the Facebook user data fiasco and then at the effect of the blowback on Facebook's value. I concluded that notwithstanding the likely negative consequences for the company, which include more muted revenue growth, higher […]
For better or worse, Netflix has changed not just the entertainment business, but also the way that we (the audience) watch television. In the process, it has also enriched its investors, as its market capitalization climbed to $139 billion in March 2018 and even after the market correction for the FANG stocks, its value is […]
In my last post, I noted that the FANG stocks have been in the spotlight, as tech has taken a beating in the market, but it is Facebook that is at the center of the storm. It was the news story on Cambridge Analytica's misuse of Facebook user data, in mid-March of 2018, that started […]
If there is one thing that I have learned about markets over the years, it is that they have a way of leveling egos and cutting companies and investors down to size. The last three weeks have been humbling ones for tech companies, especially the big four (Facebook, Amazon, Netflix and Alphabet or FANG) which […]
In my last post, I valued Spotify, using information from its prospectus, and promised to come back to cover three loose ends: (1) a pricing of the company to contrast with my intrinsic valuation, (2) a valuation of a Spotify subscriber and, by extension, a subscriber-based valuation of the company, and (3) the value of […]
In the last few weeks, we have seen two high profile unicorns file for initial public offerings. The first out of the gate was Dropbox, a storage solution for a world where gigabyte files are the rule rather than the exception, with a filing on February 23. Following close after, on February 28, Spotify, positioning […]
Seeking Alpha published my presentation before the Chartered Financial Analysts Society of Washington, DC on June 6, 2018. Summary (1) The outlook for U.S. equities is very bright. (2) Interest rates are likely to remain at historically low levels after several gradual increases in the Federal Funds rate in 2018 and 2019. (3) Corporate profits will […]
From the Omaha World-Herald: Some Berkshire shareholders stiffed an Omaha waitress. So Warren Buffett sent her a check By Steve Jordon / World-Herald staff writer 7 hrs ago From the it’s-a-small-town department: Some Berkshire Hathaway Inc. shareholders weren’t patient in a downtown Omaha restaurant. Despite their waitress’ best efforts to serve a full house of […]
CNBC has reported that David Feinberg, CEO of Geisinger, has declined the offer to be CEO of the health care joint venture of Berkshire, JP Morgan, and Amazon.
CNBC is reporting that Warren Buffett, Jamie Dimon, and Jeff Bezos have selected David Feinberg, CEO of Geisinger, to run their joint venture to reduce health care costs.
Warren Buffett and Jamie Dimon were interviewed on CNBC on June 7. Three highlights were: (1) Public companies should eliminate the practice of estimating quarterly earnings. They have also published an op-ed in today’s Wall Street Journal. (2) Buffett and Dimon are very optimistic about the economy. Buffett: ‘If we are in the sixth inning (of the […]
Bayer will close its deal to acquire Monsanto at $128 per share on June 7. Berkshire Hathaway owns 19 million shares of Monsanto valued at $2.4 billion (as of March 31, 2018).
The 2018 Summer Reading List from the Robert H. Smith School of Business at the University of Maryland contains 16 recommendations including my own: The Warren Buffett Shareholder: Stories from inside the Berkshire Hathaway Annual Meeting By Lawrence A. Cunningham and Stephanie Cuba “This book, edited by Lawrence Cunningham and Stephanie Cuba, compiles stories from […]
Apple Music's launch of a music publishing department is not a shift into signing songwriters directly. Instead, it'll allow the streaming service to work more closely and effectively with music publishers that represent songwriters.
LISTED construction and real estate group, Soilbuild, has won the tender for the collective sale of the 89-unit residential development along Balestier Road, Kemaman Point, with a bid of S$143.88 million.
[SINGAPORE] Noble Group suspended its shares in Singapore on Monday pending an announcement, as efforts to get shareholder agreement on its controversial US$3.5 billion debt restructuring plan drag on longer than expected.
ASCENDAS Hospitality Trust has on June 15 entered into an agreement with ES-CON Japan via Ascendas Hospitality Real Estate Investment Trust (A-HReit) to acquire three hotels in Japan’s Osaka city for a purchase consideration of 10.29 billion Japanese yen (S$126.1 million).
[BENGALURU] Australian shares finished slightly higher on Monday as gains in financials and real estate stocks outweighed a fall in materials stocks on lower commodities prices.
[TOKYO] Tokyo stocks fell on Monday amid lingering worries over a US-China trade war, while the impact of a strong earthquake that shook western Japan earlier in the day was limited.
SINGAPORE stocks resumed trading on Monday in negative territory, with the Straits Times Index declining 1.31 per cent or 43.92 points on the day to 3,312.81 at 1.19pm as concerns about a US-China trade war continued to batter markets.
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