Big Tech is so yesterday. Prices peaked last year, but there are limited reasons to expect they will ever become so dominant again. They are too big, under the regulatory cosh, and increasingly under competitive pressure. They are heading the same way as the dinosaurs.
Big Tech “growth” stocks suffered a price-check this week as economic reality bit, but they face much more pressure than just short-term cost and sales problems. Long-Term, new businesses and opportunities are evolving to eat their lunch, and leave them behind.
Netflix just experienced its’ judder moment – and it is shaking markets. Overnight the streamer became a completely different investment proposition, even though we’ve been warning it was inevitable. There are lessons to be learnt across the equity market.
“Hi. My name’s Bill, and I am a Netflix addict..” The streaming wars may be heading in a completely new direction as brilliant disruptive programming demonstrates the potential value of “Content” not just on TV, but for the Metaverse also. I think I just glimpsed the future – and for some it’s going to work.
Disney has just posted some great results on subscription growth, begging questions what it means for Netflix. Will the sector’s founder survive the current attritional Streaming Wars? And what’s it really worth?
A bounce back rally is underway – but its reactive, based on the hopes of “buy-the-dippers”, and the fundamentals haven’t changed. Many weakening Tech stocks are seeing their foundations exposed as built on sand.
Tech stocks have taken a thumping this year – a well-timed reality check or a threat to bring down the whole market? Probably time for a clean out of all the speculative, improbable and fantastical perpetual motion machines that beguiled IPO and SPAC investors during the easy money era. Reality bites and it’s time to get real..
The collapse of the Super-League Football coup is a great illustration of just how self-delusional big money can be. After delusion comes acceptance, which is what Netflix faces as post-covid subscription growth slows in an increasingly crowded Streaming Wars space. It won’t kill the company, but will refocus investors on the depth of its’ moat and profitability. The same process is likely to be repeated across markets as delusional myths unravel.
It’s not what you know about value – it’s what the market believes that matters when it comes to price. Will Call My Agent win the streaming wars? And will widespread adoption fuel a massive boom in Socks… just the shills say has happened in Bitcoin?
