Two years ago, in August 2015, Disney (DIS) set off the angst that has troubled traditional media stocks since by admitting to larger than expected subscriber losses at ESPN. We refer to August 2015 as the Media Meltdown. This May, another round of media companies created a smaller, mirror image decline in media stocks, this […]
Liberty Global (LBTYK) showed progress in 2Q17 after a disappointing 1Q that was accompanied by lowered 2017 guidance and a major reset and management change related to its UK buildout known as Project Lightning. 2Q17 was mixed for LBYTK with rebased revenues a bit below reduced expectations, new subscriber additions below expectations, and operating cash […]
Another fairly quiet quarter is in the books at Liberty Media which controls tracking stocks in Formula One (FWONA/K) and Liberty Sirius (LSXMA/K). LSXM controls nearly 70% of SIRI and SIRI had already reported strong second quarter results so there was very little discussion on that front. FWON was the primary subject although there were […]
Activision Blizzard (ATVI) reported strong second quarter results with sales and profits substantially higher than expected. While guidance for the third quarter and full year were raised from previous levels, it appears investors expected a larger increase. ATVI has typically provided conservative guidance in the past, and this appears to be the case again this […]
Disney (DIS) reported a mixed quarter that was completely overshadowed by its announcement of a new strategy for its media networks. The shares are trading lower, which in Northlake’s opinion is logical. Making major investments into digital, over the top distribution of its sports rights and Disney and Pixar content is going to be expensive […]
Our timing on adding Sinclair Broadcast Group (SBGI) to Northlake’s portfolio proved poor. Over the past few weeks, we sold SBGI at a loss and reinvested in Nexstar Media Group (NXST). Like SBGI, NXST owns local TV stations around the country, generally in small to mid-size markets. The bull case is also similar: extraordinarily high […]
MGM Resorts (MGM) reported strong 2Q17 results with better than expected profitability. Management executed well against long term plans to continuously improve profit margins, overcoming a self-imposed headwind from lower hotel room revenue and a slightly unlucky quarter at the casino tables. The investment thesis remains on track with several catalysts expected to drive shares […]
Facebook (FB) reported better than expected sales with profits significantly ahead of expectations. The strong results reflect expense discipline even as FB continues to invest for future growth. Looking ahead to the rest of this year, FB narrowed full year expense growth guidance from 40-50% to 40-45%. EPS easily beat Wall Street estimates even after […]
Despite lots of discussion of cord cutting and cord shaving and merger rumors, Comcast continues to produce good financial and operating results. Furthermore, management is careful with the balance sheet by keeping debt levels low and appears to be cautious about the need for a big acquisition. We like the steady growth and low risk […]
Alphabet (GOOG/GOOGL) shares seem likely to take a breather following the company’s 2Q17 earnings report. Overall, we would give the report a solid “B” but with the shares having soared 26% this year before the report an “A” was probably required to sustain the momentum. The report showed remarkable growth in Google’s mobile search, YouTube, […]
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