Archive for October, 2015

This will change at some point — and when it does, there will be a big pop — but right now YHOO can’t win a free kitten.

With a completely inferior position, Yahoo absolutely smashed the competition.

That is, they streamed the first live, free NFL game on Sunday.

It was between two small market teams.

It was also between two inferior teams… the Jacksonville Jaguars (1-5) and the Buffalo Bills (3-3).

It was also at 6:30am on the west coast, hardly what you would call “prime time.”

And it was also in London, England… where travel time and sparse crowds have translated into lethargic play in the past.

In other words, this game had all the exciting build up of a wet rag.

And yet, YHOO SMASHED results… 15 million unique viewers… vs. the 1 million viewers a region game like this normally gets on TV (source: Julia Boorstin, CNBC).

And yet — unbelievably — most of the press this morning had a negative bend.

Maybe Marissa Mayer needs to take a tip from Elon Musk:  If you can’t trust the press to get your story straight… TWEET!

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A report out from Drexel Hamilton this morning about AAPL… his rationale sounds familar!

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Drexel Hamilton analyst Brian White (formerly at Cantor Fitzgerald) initiates coverage on Apple (NASDAQ: AAPL) with a Buy rating and a price target of $200.00 (Street High)

White highlighted:

  • The sharp correction in Apple’s stock this summer represents an attractive entry point as we believe fears surrounding China are overblown, concerns around difficult iPhone comparisons are short-sighted and the appreciation for the implications of this transformational super cycle is surprisingly muted.
  • Trading at just 8.2x our CY:16 EPS projection (ex-cash) and well below the 14.7x for the S&P 500 Index, Apple remains one of the most undervalued technology stocks in the world.
  • In our view, Apple’s successful transition to a larger form factor iPhone with the iPhone 6/6 Plus is the start of a sustainable upgrade cycle that has already catapulted the company to the #1 position in China’s smartphone market for the first time ever during 1Q:15 and we estimate the company will gain share in the global smartphone market in 2015.
  • Despite a slowing economic backdrop, our recent trip to China further supports our view that Apple fever is alive and well across the country. For example, we believe Apple is planning a bigger push into Tier 3-5 cities (80-90% of China’s households) across Mainland China over the next 12-24 months and the country’s 4G network is only 12% penetrated.
  • We expect the next big iPhone market that could open up for Apple is India and we view the country at a similar stage as China was for Apple in 2010. With a population of 1.25 billion, India is similar in size to China’s 1.36 billion and enjoys a wireless subscriber base of 980.8 million users as of the end of June (source: Telecom Regulatory Authority of India).
  • For the first time in five years, Apple entered into a new product category this year with the launch of Apple Watch in April, marking company’s initial push into the wearable technology market. We believe Apple Watch will be a major hit this holiday season.
  • In our view, Apple is innovating like never before with entry into the first new product category in five years with Apple Watch, the launch of new services such as Apple Pay, an expanded effort in the TV market with the all-new Apple TV and investment in big, new industries such as the auto market that we believe could eventually lead to an “Apple Car”.