Activision Blizzard (ATVI) slightly beat expectations for 4Q19 results, with typically conservative guidance for 2020 falling a bit below consensus estimates. Interestingly, Jefferies analyst Alex Giaimo noted that ATVI has beaten initial EPS guidance by 15% on average over the last 4 years. Alongside the results, ATVI also increased the dividend paid to shareholders by […]
ViacomCBS (VIAC) reported more disappointing news with its 4Q19 earnings report and 2020 guidance. The stock is now down about -40% since last summer when the company first lowered its outlook. Investors had thought that management had given a conservative outlook back then but this appears to have not been the case. Management credibility is […]
In our last blog post on MGM Resorts (MGM), we note that after a string of tough quarters brought about mostly due to things beyond MGM’s control, the story was moving in the right direction. Bad luck has struck again and not just with hold in the casinos. The coronavirus has shut down Macau and […]
Disney (DIS) is a difficult stock to value at the moment as the company is “all in” on the roll out of Disney+ and overall transition of its traditional media revenue sources to streaming. The new streaming services are losing money now and likely will for another few years. The traditional media businesses including ESPN […]
Alphabet (GOOG/GOOGL) reported slightly disappointing 4Q19 results compared to elevated expectations that existed thanks to a +10% gain in the shares in January to all-time highs. Looking more closely at the quarter, the headline miss in revenues was heavily concentrated in hardware sales, an area where Northlake has little concern. Overall advertising revenues at search […]
Facebook (FB) delivered 4Q19 sales and earnings above consensus estimates, and reiterated guidance for 2020. The stock traded lower, reflecting an appetite for a larger upside surprise. Since last quarter, FB climbed midway into Northlake’s $200-$250 target range based on reaching 20x-25x $10+ EPS this year or next. After the earnings selloff, FB is back […]
Apple reported a strong 1Q20 and guided the current quarter nicely ahead of estimates on all key financial metrics. This is clearly a positive for Apple shares. However, the stock has soared recently, up 21% since Thanksgiving. Northlake sees the latest good news as largely reflected in the current price of Apple shares. Fundamentals are […]
Comcast reported solid 4Q19 results with strength in the cable business offset by a modest shortfall at NBC Universal’s broadcast and cable TV networks, theme parks, and film studio. As often seems to be the case over the past year, Comcast’s conference call snatched defeat from the jaws of victory when the company discussed specific […]
IBM’s 4Q19 earnings report was a big step in the right direction for Northlake’s bullish thesis on IBM shares. As a reminder, we see the potential for an expansion in the company’s depressed P-E multiple if the company can return to modest revenue growth due to improvement in the company’s growth businesses – hybrid cloud, […]
Activision Blizzard (ATVI) reported sales and earnings that were better than expected with typically conservative guidance for 4Q19. The restructuring effort underway at ATVI appears to be gaining traction as the company invests toward setting up a strong 2020. Such investments include increasing marketing spend behind successful franchises to expand the player base, developing content […]
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