TMT: Portfolio Update – Sooner, or Later? We sorted a universe of 67 large cap TMT stocks based on the 5-year cash flow growth projected by consensus, and the percentage of EV represented by the implied 5th year terminal value.
– FB blew past 2Q expectations on every metric. Sales up 60% YoY. Ad sales up 67%. Mobile ad sales up 151%. Operating margins were 59% up from 44% a year ago. EPS beat by 31%. – Ad spending is
– AAPL’s 3QFY14 was mixed, with sales 1.5% below consensus but EPS 4% above on impressive 39.4% GMs. iPhones were in-line with strong expectations, but iPads were down YoY – again! – A revenue miss, 6% growth, the fast erosion
– Media reports can’t seem to decide whether NFLX’s 2Q14 beat consensus or not, but it counts as an upside surprise anyway, because new subscriptions beat forecasts handily – US net sub adds were 570K, and Int’l was up 1.1M,
– The paradigmatic shift of ad dollars drove 22% topline growth for digital advertising leader GOOG. The sales beat overshadowed an EPS miss that was largely due to a higher tax rate. – GOOG sites revenue was up 23% and
– MSFT will cut 18K jobs, most from the former Nokia device business, a repudiation of Ballmer’s “Devices and Services” strategy and a bold move toward a cloud future – Device operations will be pragmatic, targeting the low end and
Apple and Google: On Your Wrist and In Your Car Despite slight recent design shifts toward each other, AAPL and GOOG still have very different world views – a contrast that is clear in their strategies to extend their platforms
Quick Thoughts: Google I/O – Android is here, there, and everywhere – GOOG’s I/O keynote introduced the new “Android L” and focused on extending a consistent Android and application experience into new venues, such as wearables, TVs and automobiles –
US Telecom: Merger Mania! Telecom Bankers Rejoice! Telecom bankers have been busy, with 2 blockbuster deals on the table, and a third expected to follow. We believe that that all 3 will be approved by the FCC and DoJ, albeit
– TMUS CEO John Legere continued his “Un-carrier” assault on T and VZ, unveiling 2 new and unique subscriber benefits in an F-bomb laden late night presentation. – The 1st offers a 7-day free test drive of the iPhone 5S,
