Comcast remains a tale of COVID winners and COVID losers. The cable/Xfinity business is performing great, driven by broadband. Cord cutting has minimal impact given margin dynamics and the fact that you cannot really cut the TV cord without maintaining the broadband cord. The NBCUniversal and traditional media side is still feeling pressure from COVID. […]
Apple reported an extremely good December quarter to open the company’s 2021 fiscal year. Strength was across the board in all products, services, and geographies. The results materially exceeded high expectations. Northlake sees two key long-term takeaways from the results. First, the iPhone remains healthy and is poised for several years of growth as 5G […]
IBM reported disappointing 4Q20 earnings although there were positives that support Northlake’s investment thesis. EPS exceeded expectations, but the upside was due to below-the-line or non-operating items. The culprit in the quarter was revenue weakness. We are not surprised by a revenue shortfall given IBM has a lot of exposure to on-premises enterprise spending in […]
We recently added Sony (SNE) to Northlake client accounts. In many cases, we partially paid for the investment in SNE by selling shares of ViacomCBS (VIAC). SNE is well-known for its consumer electronics products, but this is just a small part of the company. The key growth drivers are video games, music, TV and film […]
There are no changes to Northlake’s favored themes for December. We remain neutral on growth versus value and continue to favor mid caps. As a result, current client positions following the models in the Russell 1000 Growth (IWF), the Russell 1000 Value (IWD), and the S&P 400 Mid Cap (MDY) will be held for at […]
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