“Let’s make some money off of this pandemic.” – Jeff
Hey there carnivores,
Markets were mixed Monday.
Today we’re talking about the stay-at-home product boom.
Jeff & Jason
If you can stream it…
Roku’s stock was on fire yesterday as the streaming technology company reported positive user growth and a 49% jump in hours streamed for Q1.
“Pshh, those are rookie numbers” – every “adult entertainment” site
The stock price gained 4% on the day, and another 11% after hours. Not unlike Roku’s usage on a typical workday.
Let’s dive in
In case you were never exactly sure what Roku does, here ya go: it’s the OG streaming platform and operating system (think: Google Chrome for your TV) that allows you to watch apps like Netflix, Hulu, and even cable programs right on your TV. Yes, even dumb ones.
Despite the recent boom in streaming services, Roku’s stock had cratered from a high of $170 in September to just above $63 in Mid-march. Who knew a pandemic could save a company?
Roku hasn’t reported Q1 numbers yet but it estimates that users streamed for 13.2B hours during the first three months of the year, an increase of 49% from the previous quarter, which included the holiday season (another instance where you’re stuck inside with people you dislike). The company also noted that 3M new viewers joined the platform as of March 31, bringing total active users up to 39.8M.
As is the trend for pretty much every company these days, Roku did not provide guidance for the full year, though its Q4 2019 estimate was calling for 2020 revenue of $1.6B.
Netflixin’ on em
Not to be outdone by Roku, Netflix’s stock skyrocketed 7% and reached a 52-week high, closing at $400.51. The Blockbuster-killer (*pours one out*) didn’t put out news, issue guidance… or announce that ‘The Office’ isn’t leaving, but investors are flocking to the stock as users have had plenty of time to watch that psychopath Carole Baskin lie about feeding her husband to tigers.
The bottom line…
Despite last week’s impressive market run-up, gains in this environment have been a story of the “haves” and “have-nots.” That is, if your core demographic includes “people sitting at home looking to waste time,” investors are piling in.
But companies not named Roku, Netflix, Amazon, and Zoom continue to face “headwinds” (read: they better be praying to the Fed gods). Need proof? According to a WSJ 295 companies have pulled their full-year guidance as of April 10th, heightening investor’s concerns with earnings season on the horizon.
Of course, this is only the tip of the iceberg when it comes to earnings uncertainty. The economy and markets face a long road to recovery. Isn’t that right, Dr. Fauci?
☑️ Quibi: an underdog story. The little streaming service that could…
Mobile streaming service Quibi launched its short-form video platform last Monday and is celebrating its one weekiversary (surprisingly a real word… thanks clingy GFs everywhere). The new app saw 1.7M downloads during those first seven days, reportedly exceeding expectations of CEO Meg Whitman (probably by 1.6M).Underpromise. Overdeliver.
Getting into the details, 80% of users who started watching a show completed the entire first episode… showing that even in this day and age users can manage to pay attention for ten minutes. It’s a good start for Quibi but makes you wonder what the long term plans are for competing with the behemoths of the industry. 300k users installed the app on Apple and Android devices on day one, falling juuust shy of Disney+’s 4M day-one downloads.
The iPhone is supposedly getting a facelift in its next release. Throwing it back to the iPhone 4 and 5, the latest design would have angular sides and flat screens, which is also similar to the latest iPad models.
There will allegedly be four new iPhone models debuted this fall, with two higher-end ones to replace the iPhone 11 Pro and iPhone 11 Pro Max. At least one of these higher-end models will have an even larger screen than the 6.5 inches… but odds are none of them will really give the people what they want. A HEADPHONE JACK.
☑️ Spare some miles?
I’m not sure if you’ve noticed, but nobody has been flying lately… heck, even Superman is staying home instead of taking to the air. This means that airlines are in a cash crunch and, thus, getting creative. Delta and United are considering selling miles at a discount in exchange for cash from their credit-card partners, American Express and JPMorgan. Can you be any more desperate?
Airlines sell miles all the time, but this would be different, as the banks would bulk buy the miles ahead of schedule instead of as cardholders accrue points. And while this would give the airlines cash now, it would forego the future revenue. Sounds like the airlines should call JG Wentworth.
☑️ You’re hired!
Let’s face it: 2020 has been a sh*t year for almost everyone… everyone besides Mr. Jamie Iannone, who just got hired to be the new CEO of eBay. He’ll make his return back to eBay at the end of April, where he spent nearly eight years as a VP. They selected the Buy Now option this time.
So why’s his year been so good (besides the obvious news)? Well, this is his second promotion YTD. He had just been promoted to lead Walmart’s stateside e-commerce business in late February after crushing it as CEO of SamsClub by growing membership and sales. It’s nice to see at least one person’s New Year’s resolution is coming true.