Audioburst Search
|
2 months ago

Coming up next

Snap, Disney, Chipotle

MarketFoolery
|
2 months ago

A new story from Bloomberg Businessweek

Bloomberg Businessweek
|
5 d ago

Automatic TRANSCRIPT

I'm Chris L. With me in studio today the Fabulous Abby Mellon. Thanks for being here. Thanks for having me. We've got more earnings. I love earning season so damn much. We've got we've got some restaurant earnings. We've got some social media earnings. We're going to start with Disney though look like another solid quarter of the first quarter results. You look at their parks division. You look at products solid growth both across the board. I know that Disney plus is getting the headline here but worth remembering. This is a a diverse business with a bunch of segments the stocks down a a couple of percent but let's focus on the first quarter results. Anything stand out to you. Yeah I mean. Revenue was up thirty six percent year over year to twenty point. Eight billion dollars which is massive amounts and a massive increase really I do think it's worth noting that Disney's revenue tends to be a little bit chunky. So Oh Especially for this. Most recent quarter it was pretty influenced by the studio entertainment segment which was driven by frozen too. And then the star wars movie so Disney does have a little bit of blockbuster Lumpini within their earnings. But you are right. I mean it's a super diversified business. Lots of growth engines and lots of positive momentum before we get to Disney plus also I think worth pointing out something Bob Iger. The CEO said with regards to China. They are currently if if I have the numbers right. They are currently budgeting about a one hundred. Seventy five million dollar miss due to their parks in China and that is based on an assumption that the parks will the only be closed for two months. I guess my first question is that certainly sounds like a lot of money and and if it it is in fact two months. And then the park's reopening and business returns as normal than this is a speed bump but how concerned should shareholders. I be about that I think in the short term. It's definitely going to be a pressure cooker. I do think Disney tends to be a little bit more conservative in their management style. And so for our projections going forward I would say that's probably sort of an outside case scenario at least as they see it now That is still developing obviously so it could be much worse than that but I do think long term. It won't really matter because I think Disney has a magic. There's a polls those parks people will come eventually. especially if you you know if you told your kid going and then you can't say you of course have to make that up at some point right so I think it's more sort of a deferred situation rather than a total mess are completely gone. So Disney plus subscribers are now somewhere in the neighborhood of twenty six million which is great to see right out of the gate. I think that surprised some people to the upside Were you surprised it was not big. Yeah this is what I was. Twenty eight point six million as of Monday so a little bit into this next quarter as well. which if you think about? It is about seventeen percent of the size of Netflix. So within not less than ninety days really they've achieved humongous growth. But I think it's even you know when you look at that bundle that they're offering about thirteen dollars a month bundle for ESPN plus and Hulu as well so ESPN and now has six point. Six million subscribers up from one point four million a year ago Hulu has about thirty four thirty point four million subscribers up about thirty thirty three percent annually. So it's not just about Disney plus it's really about the total package offering these streaming services. I think they've been really smart with the way that they have price. This and while I was a little surprised at the size of the Disney plus numbers. Maybe I shouldn't have been because they really priced it in such a way that you could tell they wanted to get a bunch of people. Although they did did stress that they added two million subscribers after the delorean came out or something like that But but I as good a number as the Disney plus number is. I'm now looking to the next quarter and I'm thinking okay. What is it reasonable assumption in terms of growth because if they priced it in such a way to get a lot of people right out of the gate is? They're going to be a selloff if they come out three months from now and say. Oh we've gone from twenty eight and a half to thirty one which is like well. It's going up not down. That's good but it almost seems like they. I'm not saying I'm expecting another twenty five million subscribers but there is some number out there that they need to hit i. I think people have big expectations and they've just raised their own ceiling right. So you have to be Conscientious of that. I would imagine the sort of longer term or or medium term plan is that I would be very surprised if that thirteen dollar bundle stays at thirteen dollars. I would expect that price increase. I think the value of that package is Certainly a lot more than thirteen dollars when you look at comparative offers so I think long term this will be monetize. Maybe through price rather rather than through quantity. Let's move on to snap. Shares of snapper down ten percent today. Fourth quarter revenue came in lower than expected for snap and that is notable because this is a growth company and this is the first revenue miss. They've had in nearly two years. Yeah I think it's a fair critique with that being said I actually I think this is the first quarter I find snaps. There's actually a little bit interesting from an investing standpoint for me So if you look at their key highlights for the quarter daily average what users increased seventeen percent year over year so they now reach about two hundred eighteen million people and not increased in each Geographic segment that they operate so North America. Europe you're up and what they call the rest of the world Totally daily time spent by snap charters watching their discover platform which is a lot of their monetization. Actually increase thirty five percent year over year in the quarter and particularly within that age demographic of twenty five and above it spent time spent in discover so that same metric increased increased sixty percent year over year And so I think when you think about the longevity of snapchat which I think has always been a question for them. Those are very positive metrics at a time when I wouldn't have necessarily anticipated