Financial Friends 🌱

A community for everything business, finance, and investing related. Retweeting the best content out there.

[Brendan Schema @brendanschema]

Buying $AMZN > Buying on Amazon

[dividend hike @dividendhike]

WaFd just hiked the dividend by 4.0%. $WAFD

[Brendan Schema @brendanschema]

Tonights Super Bowl ad spots breakdown:

[Brendan Schema @brendanschema]

Here is a list of brands we know will show ads during the Super Bowl:

NYX Cosmetics
E.l.f. Cosmetics
Coors Light
BodyArmor
State Farm
Drumstick
Kawasaki
Hellman’s
Bud Light
BetMGM
TurboTax
T-Mobile
Popeyes
Pringles
Doritos
CeraVe
Starry
Nerds
Lindt
Dove
Oreo
Etsy
NFL
Silk

[Morning Brew ☕️ @MorningBrew]

There have been more Temu ads than touchdowns so far

[Morgan Housel @morganhousel]

"Nothing so undermines your financial judgement as the sight of your neighbor getting rich." J.P Morgan

[App Economy Insights @EconomyApp]

Earnings season continues!

What are you watching this week?

• Monday: $ANET, $CDNS, $MNDY, $ZI.
• Tuesday: $ABNB, $DDOG, $SHOP, $UPST.
• Wednesday: $APP, $CSCO, $HUBS, $SONY.
• Thursday: $AMAT, $COIN, $ROKU, $TTD.

[Morning Brew ☕️ @MorningBrew]

Coke is rolling out their first permanent flavor in years

Cherry
Vanilla
Regular
And now.... Spiced

Combines raspberry and spiced flavors. Looks kinda good?

[Brendan Schema @brendanschema]

$DIS Disney Earnings

EPS: $1.22 adj. vs 99 cents expected
Revenue: $23.55b vs $23.64b expected

Net income of $1.9b up from $1.28b
FCF of $886m up from ($2.1b)

Disney enters $1.5b stake in Epic Games
ESPN DTC service confirmed
Dividend increased 50%
$3b buyback approved

[Morning Brew ☕️ @MorningBrew]

Best performing stock in the S&P (total returns)

Last 5 years:
1. Nvidia +1,743%

Last 10 years:
1. Nvidia +17,763%

Last 15 years:
1. Nvidia +34,320%

[Quartr @Quartr_App]

$PLTR Q4 2023

Revenue +20%
*Commercial +32%
*Government +11%
Customer count +35%
Adj. EBIT +28%
*marg 34% (29)
EPS +33%
Stock +15% AH

[App Economy Insights @EconomyApp]

Apple Services made $23B in Q4.

It was more than:

🔴 Netflix $NFLX
🟠 Mastercard $MA
🟢 Spotify $SPOT
🟣 Electronic Arts $EA
⚫️ Peloton $PTON
⚪️ The New York Times $NYT
🔵 Dropbox $DBX

Combined. $AAPL

[Brendan Schema @brendanschema]

Disney (ESPN), Fox, and Warner Bros Discovery's decision to create a joint venture that will bring together the trios networks is quite the move… back to cable?

Let's start at the beginning.

From Disney, you get ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, as well as the ABC broadcast network.

Fox includes the Fox broadcast station along with FS1, FS2, and BTN.

Warner Bros. Discovery brings TNT, TBS, and TruTV.

This joint venture will essentially control everything in the major sports world besides NBC and CBS. That is quite literally insane. The rumored price point for this service will be $45-50 per month. And it wouldn’t be a streaming service if you couldn’t bundle it with ESPN+, Hulu, or Max.

Here is where things start to get tricky… doesn’t this just cause a race to one provider? I am referring to the fact that streaming is slowly beginning to mimic cable TV. But let’s think about this step by step.

1. All corporations create DTC streaming platforms to capture customers.
2. All corporations slowly raise prices as profitably is hard to find.
3. All corporations begin to churn customers as prices go up, causing further issues.
4. Mergers and consolidation begin between 2 and 3, and after 3.
5. All corporations begin offering an ad-supported tier of their service.

And now we are here, what I would call 6. Corporations are creating joint ventures that will theoretically cannibalize their DTC offering in favor of creating economies of scale or… cable?

Of course, this is very high level and oversimplified but let me know what you think. Will this joint venture be successful? What is the measure of success?

[Brendan Schema @brendanschema]

$MCD McDonald's earnings🍔

Revenue: $6.41 billion vs $6.45 billion expected
EPS: $2.95 adj. vs $2.82 expected

Net sales up 8% year over year

Net income of $2.04 billion, up from $1.9 billion a year earlier

Domestic same-store sales up 4.3%
Global same-store sales up 3.4%

[Dividend Hero @HeroDividend]

Hot take:

Most people don’t actually save money by shopping at Costco

[App Economy Insights @EconomyApp]

$MSFT Microsoft's latest quarter visualized.

Activision Blizzard is included for the 1st time.

🎮 Gaming is now bigger than Windows. 👀

[Brendan Schema @brendanschema]

Apple Vision Pro will unlock so much value from Apple One. Here is why.

1) Spatial video is about double the file size of a normal video. Take a bunch of these and you need more iCloud.

2) AppleTV+ will leverage the Vision Pro better than any other platform.

3) Gaming is always going to be a major use case for headsets. Once Apple begins to develop games for Vision Pro, users will be “gently” guided to Apple Arcade.

4) It might take a generation or two, but once you can move fluidly in a Vision Pro, think of the Apple Fitness capabilities.

5) If Spotify decided to stay away from Vision Pro permanently, why would Apple care? Insert Apple Music.

6) News seems to be the oddball. Leveraging spatial video or immersive images would be amazing. Is it a reason you get Apple One? No. But does it hurt? No.

Long story short, Apple has the ability to fully leverage their suite of proprietary applications and continue to grow subscription revenue… it just may take a few iterations.

[Brendan Schema @brendanschema]

Netflix has reached a 10-year deal to stream WWE Raw for over $5 billion, emphasizing Netflix's focus on Live Sports.

Netflix: WWE Raw
Peacock: Sunday Night Football
Apple TV+: MLS, Friday Night MLB
Prime Video: Thursday Night Football
ESPN+: Out-of-market NHL, F1, UFC, etc.

[Brendan Schema @brendanschema]

$PG Procter and Gamble earnings

EPS: $1.84 vs. $1.70 expected
Revenue: $21.44B vs. $21.498B expected

Net income falls from $3.93B the previous year to $3.47B.

[Brendan Schema @brendanschema]

$JNJ Johnson & Johnson earnings

EPS: $2.29 vs. $2.28 estimated
Revenue: $21.40B vs. $21.02B estimated

J&J guidance for full year forecasted sales of $87.8B to $88.6B and adjusted EPS of $10.55 to $10.75.

Net income was $4.13B compared to $3.23B in the year-ago period.