This retail giant has been one of the largest and most profitable companies in the sector for decades and it continues to invest in e-commerce and the consumer experience.
We believe Jerome Powell's announcement that the Fed is not planning to raise rates in the immediate future validates the key points we made over two years ago.
David Trainer sat down with Alyona Minkovski of Real Vision TV to talk about our recent Long Idea “Rising from the Ashes to Lead a New Retail Paradigm.”
The market has recognized some of the turnaround (shares are up 40% in the past year), but investors are missing the critical role the firm could play in the next chapter of retail as well as the balance sheet story.
To help investors sort through the confusion, we present three different proposed valuations for Spotify based on three different scenarios of growth and profitability.
While this deal certainly could be good for AMZN, we believe the market may be ignoring some of Whole Foods Market’s off-balance sheet liabilities that make this acquisition more expensive than it appears.
Even with inflation running below target, the Fed chose to raise interest rates again. The Fed’s influence is overstated, but it’s still troubling that major policymakers are acting on such an outdated view of the economy.
The surfacing of this ugly truth could be a catalyst for more investors to question the viability of Netflix’s business model and to send NFLX shares to a more rational level.
On the back of a strong holiday season, retailers are back in the spotlight. To start out the new year, we want to take the time to circle back to two of our previous long ideas on some of the giants in the retail industry.
It’s time to consider a new paradigm for interest rates – a paradigm where treasury rates remain ultra low and riskier investments are priced by a decentralized market instead of a central bank.
The internet economy may be in the early stages of transforming our daily lives, but it’s already wreaking havoc on economic policy. As mentioned at the top of this piece, the Fed cannot manage to hit its 2% inflation target no matter how hard it tries, so maybe it should stop trying.
Issues include: unprofitable international expansion, dwindling competitive advantages, and a sky-high stock valuation. For a long time, the market has largely ignored these concerns. When investors finally accept the truth about this company and stock, Netflix (NFLX) could be in for a big sell-off.
I think we are seeing the start of that process in late 2015 and early 2016. The combination of a slowdown in China, falling energy prices, and the end of zero interest rate policy from the Fed have put markets and the global economy in an interesting state of transition.
Despite deteriorating margins, lack of competitive advantage, and a sky-high valuation, Qlik Technologies (QLIK: $31/share) is up nearly 33% over the past two years and finds itself in the Danger Zone this week.