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>>> Sirius XM Stock: Buy, Sell, or Hold?
by Dan Victor
Motley Fool
September 18, 2024
https://finance.yahoo.com/news/sirius-xm-stock-buy-sell-134500699.html
Sirius XM Holdings (NASDAQ: SIRI) investors have struggled to lock onto a signal from the satellite radio giant. The stock is down 55% this year amid disappointing results with concerns about whether the company can manage to move the dial toward stronger growth.
The good news is that the company remains a category leader with an audience of over 150 million listeners across its platforms. The potential that Sirius XM finally gets its strategy right highlights the attraction of the stock with a significant opportunity to monetize next-generation audio formats.
Let's discuss what investors should do with Sirius XM stock now.
The case to sell Sirius XM stock now
The way people consume media has rapidly changed in the past two decades. Unfortunately for Sirius XM, the company has been on the wrong side of the audio revolution as satellite radio largely fell behind the rise of streaming-music alternatives.
Recognizing the advantages of a satellite broadcast, particularly compared to terrestrial radio, the technology appears redundant next to the proliferation of broadband-mobile internet. It's been a tough sell for Sirius XM to convert listeners with its premium price point when most people are already connected to the internet via their smartphone device offering access to multiple audio options.
Despite partnering with global-auto manufacturers to feature Sirius XM as an in-vehicle audio option, the company's flagship radio service has been in decline for the last several years. Compared to a record 34.91 million subscribers in 2019, the company last reported 33 million paying users in the second quarter, down 100,000 in the past year.
The trends from the smaller-streaming Pandora segment and other off-platform services haven't been any better. The 6 million paid Pandora subscribers this past quarter was down by 41,000 from a year ago.
Similarly, financials have struggled. Q2 revenue declined by 3% year over year, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were flat compared to 2023. For the full year, the company expects revenue to decline by around 2% with an adjusted EBITDA target for 2024 at $2.75 billion, down 3.2%. These dynamics help explain the fundamental challenges the company faces. Investors skeptical that Sirius XM can orchestrate a turnaround have plenty of reasons to sell the stock.
The case to buy Sirius XM stock
It's easy to get caught up in the poor headlines, but it's also important to consider the strong points of any outlook. Beyond the soft operating trends, Sirius XM remains profitable and generates significant free cash flow, expected to be around $1.2 billion this year.
The plan is to reduce the balance sheet debt position and invest toward growth. On Sep. 9, Sirius XM completed its split-off and merger transaction with Liberty Media which included a 1-for-10 reverse split. This means that shareholders of the stock received one new share for every 10 shares they owned.
The deal, announced last year, simplifies the equity structure and should provide the now independent Sirus XM Holdings Group more strategic flexibility that can hopefully translate into improved shareholder returns. The stock yields 4% through a quarterly dividend that management intends to maintain.
The business isn't growing as expected, but there is a sense of stability supported by a loyal listener base. Instead of attempting to compete with larger players like Spotify Technology for on-demand music streaming, Sirius XM differentiates itself with more curated content that is now available on a stand-alone mobile app separate from the in-vehicle satellite-radio product. The company is betting on a younger demographic growth audience seen as more willing to spend on multiple services.
The bullish case for the stock starts with the company's ability to expand advertising opportunities from its high-profile podcasts along with exclusive live sports broadcasting. With shares of Sirius XM trading at a forward price-to-earnings (P/E) ratio of 8, investors who are confident there are better days ahead can consider buying the stock at what appears to be a bargain level.
Decision time for Sirius XM stock
My prediction is that the number of uncertainties surrounding Sirius XM will keep shares volatile. With the stock already losing more than half its value this year, it's probably too late to sell since many of the negatives are already priced in. The big risk is if conditions deteriorate further. At the same time, it will likely take evidence sales and accelerating subscriber trends for the stock to sustain a big rally. I believe a hold rating makes sense for current shareholders while investors on the sidelines should avoid it for now.
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>>> Intuitive Machines, Inc. (LUNR) designs, manufactures, and operates space products and services in the United States. Its space systems and space infrastructure enable scientific and human exploration and utilization of lunar resources to support sustainable human presence on the moon.
The company offers lunar access services, such µNova, lunar surface rover services, fixed lunar surface services, lunar orbit delivery services, rideshare delivery services to lunar orbit, as well as content sales and marketing sponsorships; and orbital services, including satellite delivery and rideshare, satellite servicing and refueling, space station servicing, satellite repositioning, and orbital debris removal.
It also provides lunar data services, comprising Lunar data network, lunar south pole and far-side coverage, lunar positioning services, data relay, and data storage/caching.
In addition, the company offers propulsion systems and navigation systems; engineering services contracts; lunar mobility vehicles, such as rovers and drones; power infrastructure that includes fission surface power; and human habitation systems.
It serves its products to the U.S. government, commercial, and international customers. Intuitive Machines, Inc. was founded in 2013 and is headquartered in Houston, Texas.
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https://finance.yahoo.com/quote/LUNR/profile/
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>>> Why Intuitive Machines Stock Jumped Up 60% Today
by Rich Smith
Motley Fool
9-18-24
https://finance.yahoo.com/news/why-intuitive-machines-stock-mooned-140209941.html
Intuitive Machines (NASDAQ: LUNR) stock soared 60% in the first five minutes of trading Wednesday morning (up 60.4% through 9:35 a.m. ET) after NASA announced it is awarding a massive $4.8 billion moon contract to the rising space star.
The contract, dubbed "GEO to Cislunar Relay Services" covers communication services to the moon from the period of Oct. 1, 2024 through Sept. 30, 2029, and has the "option" of being extended by a further five years, through Sept. 30, 2034.
NASA + LUNR = better together
Specifically, NASA is hiring Intuitive Machines to provide communication services including "position, navigation, and timing capabilities, which are crucial for ensuring the safety of navigation on and around the lunar surface." The company will establish relays for communications between geostationary orbit (GEO, about 22,000 miles above Earth's surface) and the moon, which orbits Earth at a distance roughly 10 times that.
So basically, Intuitive will be in charge of making sure that messages sent from Earth to GEO satellites get the rest of the way to the moon, and vice versa. In its contract announcement, NASA notes that hiring the space company to handle this work will lighten the communications load on NASA's own Deep Space Network.
Is Intuitive Machines stock a buy?
And here's why this is important to investors: This contract isn't just a (much) bigger contract than the kind Intuitive Machines has been winning from NASA so far. It's an entirely new kind of work that NASA is hiring Intuitive to do.
Up until now, the space agency has hired Intuitive to land payloads on the moon for it. That's great work to have, and so far, Intuitive Machines is the only private company that's proven it's able to do it. Now the company is growing into a new field of business -- space communications -- and it looks very much like it could be a billion-dollar-a-year business for Intuitive Machines.
This is a clear-cut win for Intuitive Machines stock, and investors are right to be happy about it.
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Sirius XM - >>> The Most-Anticipated Reverse Stock Split of the Year Has Arrived -- and This Company Is a Screaming Bargain
by Sean Williams
Motley Fool
Sep 10, 2024
https://finance.yahoo.com/news/most-anticipated-reverse-stock-split-084100466.html
Since 2024 began, hype surrounding the artificial intelligence (AI) revolution has played a major role in lifting Wall Street's three major stock indexes to multiple record-closing highs. But AI isn't the only trend pushing the broader market higher. The euphoria surrounding stock splits has played an equally important role.
A stock split allows publicly traded companies to adjust their share price and outstanding share count by the same factor, without altering their market cap or underlying operating performance. It's a purely cosmetic maneuver that can have important consequences.
There are two varieties of stock splits, with investors decisively favoring one over the other. A reverse-stock split is geared at increasing a company's nominal share price, usually with the goal of ensuring it meets minimum continued listing standards for a major stock exchange. Conversely, a forward-stock split is designed to reduce a company's share price to make it more nominally affordable for everyday investors who can't purchase fractional shares through their broker.
Generally speaking, reverse splits are conducted by struggling businesses whose share price is floundering. Comparatively, companies completing forward splits are typically out-innovating and out-executing their peers. Unsurprisingly, most investors tend to focus on high-flying companies enacting forward splits.
Since late January, 13 prominent businesses have announced or completed a stock split -- 12 of which are of the forward-split variety -- including AI darlings Nvidia, Broadcom, and Super Micro Computer.
But it's the lone high-profile reverse-stock split that deserves the attention of Wall Street and investors today.
The most-awaited reverse-stock split of 2024 is now complete
In mid-December, Sirius XM Holdings (NASDAQ: SIRI) and Liberty Media's Sirius XM tracking stock, Liberty Sirius XM Group (NASDAQ: LSXMA)(NASDAQ: LSXMB)(NASDAQ: LSXMK), announced their intention to merge into a single class of shares. Liberty Media is the majority stakeholder in Sirius XM, and the variance in the price between Liberty Sirius XM Group's three classes of shares and the share price for Sirius XM stock has been head-scratching at times.
Last week, the final exchange ratio for this merger was announced, with Liberty Sirius XM Group stakeholders redeeming their shares "in exchange for 0.8375 of a share of common stock of New Sirius." Liberty Sirius XM Group stopped trading after the close of business yesterday, Sept. 9, which means today, Sept. 10, marks the first day of a single, non-confusing, class of Sirius XM shares.
But there's more to this combination than just getting the exchange ratio correct and ending the confusion of multiple shares classes.
In mid-June, Sirius XM announced that, upon consummation of the merger with Liberty Sirius XM Group, a 1-for-10 reverse-stock split would be conducted. This reverse split, which is now complete, has reduced the company's outstanding share count from well over 3 billion to an estimated 339.1 million shares.
What makes this reverse-stock split so unique is that it's not being executed out of weakness. In other words, Sirius XM was in no danger of delisting from the Nasdaq stock exchange.
Instead, it was enacted to increase its share price from the $3 to $6 range that it's hovered around for years to one that's more likely to attract institutional investors. Some money managers will avoid stocks priced below $5 for fear of increased volatility. Sirius XM's 1-for-10 reverse split eliminates this minor concern and should put the company back on the radar of top-tier money managers.
Sirius XM is a screaming bargain for opportunistic long-term investors
In addition to being Wall Street's only high-profile reverse-stock split of 2024, Sirius XM Holdings is, arguably, the top bargain among the 13 companies to have announced or completed a split this year.
Though I'll get to the figures that qualify Sirius XM as a "screaming bargain" in a moment, let me walk you through a few of the competitive advantages that make it a stock you can safely own for years to come.
To begin with, it's the only licensed satellite-radio operator. While this doesn't mean it's devoid of competition, it does convey that Sirius XM is a legal monopoly. As such, it affords the company exceptional pricing power with its monthly and annual subscriptions.
Another advantage to Sirius XM's operating model is its cost structure. While some of its expenses, such as royalties and talent acquisition, are going to fluctuate from quarter to quarter, transmission and equipment expenses typically don't change, regardless of how many subscribers the company has. If Sirius XM can expand its subscriber base, it should have a clear path to improve its operating margin over time, largely thanks to some of its costs being highly transparent and predictable.
A third competitive edge Sirius XM holds over traditional radio operators is the path by which revenue is generated. Online and terrestrial radio providers are overwhelmingly reliant on advertising to pay the bills. While this strategy works well during lengthy periods of economic expansion, it can lead to some big question marks when recessions inevitably occur.
Sirius XM has brought in less than 20% of its sales through the first six months from advertising. Comparatively, almost 77% of its revenue can be traced to subscriptions. There's a considerably lower likelihood of satellite-radio subscribers cancelling their service during a recession than there is of businesses cutting their ad spending. This tends to lead to more predictable cash flow for Sirius XM in any economic climate.
With these competitive advantages in mind, let me now address how historically cheap Sirius XM's stock is. Based on where shares closed on Sept. 6, Sirius XM can be scooped up by opportunistic long-term investors for 8.3 times forward-year earnings. This represents a 53% discount to its average forward price-to-earnings (P/E) multiple over the trailing-five-year period, and is a stone's throw away from its lowest forward P/E multiples since going public in September 1994.
Sirius XM is historically cheap relative to its cash flow generation, too. Its multiple of 5.6 times forecast operating cash flow in the current year (2024) equates to a 43% discount to its average price-to-cash-flow multiple over the last five years.
Tack on a sustainable 3.9% yield for good measure, and you have a screaming bargain that also happens to be Wall Street's most-anticipated reverse-stock split of 2024.
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>>> Sirius XM Stock Has a Good Debut as Independent Company. Berkshire Hathaway Becomes Top Shareholder.
Bloomberg
by Andrew Bary
Sept 10, 2024
https://www.barrons.com/articles/sirius-xm-stock-berkshire-hathaway-buffett-ca45b84c
An independent Sirius XM Holdings had an encouraging debut Tuesday, as Berkshire Hathaway emerged as the largest shareholder with an estimated 25% stake—replacing Liberty Media (FWONA) and its control holder, media mogul John Malone.
Sirius XM Holdings stock gained 2.6% Tuesday to $27.38, after trading as low as $24.43 earlier in the session.
A combination occurred late Monday of Sirius XM with Liberty Sirius XM Holdings, a tracking stock that held about 83% of Sirius XM shares. Sirius XM, the satellite radio company, also did a one-for-10 reverse stock split.
The merger caps what has been a poor year for the Sirius XM, which is down about 50% so far in 2024. The stock is off over 10% since the start of September.
The company provided updated financial guidance late Monday in conjunction with the merger. It reduced its projection for 2024 free cash flow by $200 million to $1 billion, reflecting several factors, including higher interest costs and year-to-date cash outflows at Liberty Sirius XM. That amounted to a modest disappointment, although revenue and Ebitda, or earnings before interest, taxes, depreciation, and amortization, projections were unchanged at $8.75 billion and $2.7 billion, respectively.
The combination between the two companies had been sought for years by Malone and Liberty CEO Greg Maffei to simplify Sirius XM’s structure, broaden its investor base to those who couldn’t hold tracking stocks, and potentially pave the way for its entry into some equity indexes.
Berkshire was the largest holder of the Liberty Sirius tracking stock, and now becomes the biggest investor in Sirius XM. The $2.3 billion stake in the company is believed to be managed by Ted Weschler; he is one of two investment managers that works with CEO Warren Buffett, who oversees Berkshire’s $300 billion equity portfolio. There was no immediate comment from Weschler.
Buffett is a fan of the satellite radio service and regularly tunes into its Siriusly Sinatra station that plays American standards when he’s driving in his Cadillac, Maffei said last year. The station plays songs performed by Frank Sinatra, Ella Fitzgerald, Billie Holiday, and others.
Sirius XM bulls point to the company’s low valuation at less than 10 times projected 2024 earnings and a 10% free cash flow yield. The stock yields about 4% based on a dividend of about 27 cents per share quarterly. The company’s share count fell about 12% in conjunction with the merger to 339 million shares.
The merger may wash out arbitragers who had been long Liberty Sirius XM and short Sirius XM to capture a spread that recently stood at more than 20%. In other words, these traders bought the tracking stock and sold short Sirius XM.
That could be a good setup for the stock if fundamental investors emerge to replace them. Free cash flow is expected to be higher in 2025 at $1.5 billion, Sirius has projected.
Negatives are ample debt of about $10 billion, or nearly four times projected 2024 Ebitda. The company’s target leverage ratio is mid-to-low three times. Sirius XM unveiled a $1.2 billion share repurchase program Monday, but said it plans to emphasize debt reduction with free cash flow until it meets its debt ratio goal.
Sirius XM stock has been hit hard this year for several reasons. The company’s revenue was down 5% in the latest quarter while self-paid satellite radio subscribers have fallen about 400,000 in the first half of 2024 to about 31.5 million. That has prompted concerns that the subscriber count will continue to decline and put pressure on the monthly subscription fee.
Weakness in cable TV stocks also has hurt Sirius XM’s valuation, which is now about seven times this year’s estimated Ebitda, in line with the major cable stocks.
Many investors had invested in the Liberty Sirius XM tracking stock because it long traded at a 25% to 40% discount to the value of its Sirius XM stake. But that strategy didn’t pan out well because of the sharp drop in Sirius XM stock this year which offset the discount.
That may have been the motivation for Berkshire’s involvement. It’s unclear what role Berkshire will play with Sirius XM but it usually takes a hands-off approach to its major investments—although it’s possible that Weschler or another Berkshire representative could join the board.
With a cleaner structure and Liberty essentially gone from the picture, Sirius could be in a position to deliver for investors after a tough year.
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>>> Meta's reality check: Inside the $45 billion cash burn at Reality Labs
Yahoo Finance
by Yasmin Khorram
Jul 28, 2024
https://finance.yahoo.com/news/metas-reality-check-inside-the-45-billion-cash-burn-at-reality-labs-125717347.html
Nearly $50 billion.
In just over four years, Meta’s Reality Labs division — focused mainly on its products in augmented reality (AR), virtual reality (VR), and the metaverse — has lost as much money as the market caps of Snap (SNAP) and Pinterest (PINS) combined.
Insiders tell Yahoo Finance that the staggering cash burn is not the price of innovation, but rather the result of a “chaotic” culture that features frequent reorganizations and installation of top leaders without AR or VR expertise.
With Meta CEO Mark Zuckerberg warning that operating losses in Reality Labs will only continue to “increase meaningfully,” Yahoo Finance spoke to a dozen former high-level employees (mostly executives or managers across multiple segments including engineering, research, product management, hardware, content, and operating systems) who say the lack of a clear vision and mismanagement are largely to blame for Reality Labs' financial pitfalls.
The former employees Yahoo Finance spoke with left within the last three years, with the earliest departing in February of 2021 and the most recent ones this year. The majority left on their own because of what they called discord within Reality Labs, but some left due to structural layoffs.
They asked not to be named because of nondisclosure agreements and a fear of jeopardizing future employment opportunities.
Meta did not respond to Yahoo Finance’s multiple requests for comment on this story.
The question for investors is how to reconcile Reality Labs' multibillion-dollar expenses within the context of Zuckerberg’s “year of efficiency” promise for Meta. Despite implementing cost-cutting measures and scaling back spending in Q1 of 2023, Meta saw its shares tank 20% after its most recent earnings report, thanks to a significant increase in AI investment.
With Zuckerberg back to breaking open the checkbook, is there enough room on the balance sheet for his AI pivot and Reality Labs' steep losses? Although analysts and investors have remained patient on the long-term potential of AR and VR, how long is that leash more than 10 years on?
Back in 2014, Meta (then Facebook) made its two largest acquisitions ever in just over a month. The first was its $16 billion purchase of WhatsApp. The second was of a smaller outfit out of Irvine, Calif., that had only developed a prototype of its revolutionary VR headset. The company’s name was Oculus and the promise of its technology was enough for Mark Zuckerberg to shell out $2 billion — only a fraction of what he’d spend on its development over the next decade.
In its first few years under the Facebook umbrella, Oculus's financials were grouped in with every other product in the business. But during the COVID-19 pandemic, Zuckerberg became enamored with the potential of the Metaverse — so much so that he changed the name of his company from Facebook to Meta.
Meta also began breaking out its revenue and expenses into two separate divisions: “Family of Apps” (which included Facebook, Instagram, and WhatsApp), and “Reality Labs” (a combination of Oculus and its other mixed-reality investments). In 2020, the former reported a profit of more than $39 billion, while Reality Labs lost just over $6 billion.
The numbers only became worse for Meta over the ensuing years: a $10 billion loss in 2021, $13 billion in 2022, and $16 billion in 2023. Furthermore, slumping sales and poor mainstream adoption caused Reality Labs’ revenue to decrease annually. Since 2021, Reality Labs' annual revenue has been falling despite significant increases in spend.
In just the first quarter of 2024, Meta has reported a loss of $3.8 billion, about equal to its total revenues in the last two years combined. Analysts Yahoo Finance surveyed projected Q2 losses for the division would be closer to $5 billion. The lowest forecast we received was $4.6 billion.
'Employee Bingo'
Several of the people interviewed blamed the dysfunction and cash burn at Reality Labs on chain of command reorganizations they say took place every three to six months. This included the promotion of “local heroes” — or individuals that had succeeded elsewhere within Meta, such as Instagram or Facebook — who were then asked to replicate those results inside of Reality Labs. The lack of understanding of the technology often led to tension between new managers and the existing staff.
“It was pretty chaotic,” said a former employee who worked on the research team and said leaders were often pulled from the apps division with little VR experience. "In software you can get away with that because you make mistakes and change things all the time. In hardware, you’re stuck with your mistakes for a long time.”
“If you’re a senior director, they forklift you into any position,” said a former executive in engineering. “You can lead an organization, set priorities, take on anything from Instagram ads to AR software design. It creates this really weird dynamic where the people in the trenches doing the work don’t have respect for the senior leaders and the senior leaders don’t really speak the language of the technology they’re building.”
“They play employee bingo,” said another employee responsible for AR/VR content. “They move people into AR that don’t really understand it. It’s hardware and experience, not a news feed in your hand.”
One former executive in product management told us, “There's an arrogance there that says, ‘Look how much money I was accountable for making because of this role I played in Facebook’s Family of Apps — therefore I can obviously be successful at this new thing.’"
"I think that’s probably the real story as to why there’s been so much money thrown at this thing with such limited success today,” they said.
Just last month, several senior managers and vice presidents were quietly let go from the company, according to two people familiar with the matter. Their positions at Reality Labs included head of AR glasses hardware, head of hardware partnerships, vice president of supply chain organization, vice president of technology engineering, and head of silicon partnerships.
Another challenge is the lack of traction AR and VR products have had in gaining a wider audience. Meta also competes in the segment with Snap, Tik Tok parent Bytedance, and now Apple (AAPL).
Circana Research analyst Ben Arnold says total AR and VR device sales in the US were just over $1 billion last year — a year in which Meta’s Reality Labs expenses alone topped $18 billion. According to IDC's analysis, global shipments of AR and VR headsets dropped 67.4% year over year in 2024 Q1.
Meta’s current product lineup includes two VR headsets (the Quest 3 and Quest Pro) and Ray-Ban Meta smart glasses. But Arnold says software gains will be critical to the industry, specifically “in content and applications that appeal to people beyond gamer."
"That’s always been the challenge for this category,” he said.
A former employee said that at one point, there were 24 hardware products on an 18-month roadmap. "You might be able to do that if you’re shipping software experiences, but highly unlikely for an organization that has never really shipped outside of the Oculus space."
The source said management did not realize until too late that shipping "a wrist [watch], sunglasses, new controller models, new VR experiences, new mixed-reality experiences" was unrealistic, leading to low morale among the workforce.
“I had severe doubts about leadership,” they said.
Emblematic of that lack of direction was the scrapped development of Meta’s in-house chips for its Ray-Ban smart glasses and other devices. In 2021, after over a year of design and build, Meta’s vice president of AR Alex Himel abruptly canceled the project, instead returning to using an external Qualcomm (QCOM) chip.
The team was incensed. “All of us in the room that were software and chip people were like, ‘You’re insane,’” said a former executive who was directly involved in the project. “People were livid over this. People left the company. This guy basically flushed millions of dollars down the toilet.”
The cost of the internal chip was cheaper than Qualcomm's chip, according to another executive involved. "It's illustrative of this mindset of not really taking the innovation piece seriously and not wanting to invest in long-term deep technology on the hardware side," they said. Himel did not respond to Yahoo Finance’s request for comment.
Another executive put Meta’s spontaneous decision making more succinctly: “I had anti-confidence in the roadmap. Zuck gets excited. Everyone rallies around what Zuck gets excited about. Boz [Reality Labs head Andrew Bosworth] gets a budget based on Zuck’s excitement, and then we go off and try to figure out what the product looks like. Over and over and over again.” Meta CTO Andrew Bosworth did not respond to a request for an interview.
As for Zuckerberg's vision for his multibillion-dollar bet, sources say he sees the metaverse as another community he can own, similar to how he revolutionized social media with Facebook. "He's really big on the notion of an immersive presence across boundaries," a former executive who worked closely with Zuckerberg said.
"When we were working on the Orion [AR] glasses, the top Zuck scenario was always immersive video calls. We did all the modeling on the heat and battery performance and we told him, 'Dude, we can do a call like this for five minutes and then the person's head catches on fire.' It's a power-hungry thing, but it's one of those goals he's chasing."
Another former executive said Zuckerberg is at the mercy of Apple — due to its anti-data-tracking efforts and Vision Pro development — so he's playing "a big chess game."
"His bet is that the next thing after phones will be augmented reality glasses. Apple is making moves and he's trying to protect by investing in the future and hoping to own the next platform."
Wall Street, meanwhile, has its own mixed reality on the stock. Gene Munster, co-founder of Deepwater Asset Management, called Reality Labs “a disaster from a financial perspective.” Munster told Yahoo Finance that the stock would be higher if not for the significant cash burn inside the division.
Wedbush analyst Dan Ives agreed, referring to Reality Labs as the “black eye of spending at Meta.” Yet, both remain bullish on the stock, despite Munster believing that Reality Labs won’t play a real role in Meta’s future for at least a decade.
Meta investor Dan Niles of Niles Investment Management called Reality Labs “a giant insurance policy,” saying Meta could always cut spending in the division if its other businesses falter.
For those insiders with “Reality Labs” on their resumes, it’s a different conclusion. “It just doesn’t seem responsible,” said a former executive. “If I was a shareholder, I would rather see Zuckerberg putting all their metaverse infrastructure on top of somebody else burning at those rates. Let Samsung or Apple build that hardware.”
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>>> Motorola Solutions Announces New Global R&D Centre in Ireland
Business Wire
Jul 7, 2024
https://finance.yahoo.com/news/motorola-solutions-announces-global-r-230500239.html
Cork Centre recruiting highly skilled jobs to design technologies vital to the company’s global footprint of customers
CHICAGO & CORK, Ireland, July 07, 2024--(BUSINESS WIRE)--Motorola Solutions (NYSE: MSI) today announced it is opening a new Research and Development Centre in Cork, Ireland, expected to generate 200 highly skilled jobs. The team will be focused on designing software for the company’s comprehensive land mobile radio (LMR) portfolio, with plans for expansion across other technologies in the future.
Following investments of more than $12 billion in R&D and acquisitions over the past decade, Motorola Solutions’ ecosystem of technologies is centered on safety and security, with LMR representing a foundational core. The company has deployed more than 13,000 LMR networks worldwide, trusted by governments and enterprises for highly secure communications designed to work in the most extreme conditions. Modernised with broadband and advanced data applications, LMR remains at the forefront of providing public safety agencies with the communications they rely on and need.
"Decade after decade, the durability of our mission-critical LMR technology helps protect those who protect us all," said Greg Brown, chairman and CEO, Motorola Solutions. "Our new centre in Cork will contribute to advancing our future vision for LMR, while building upon the collective impact of our more than 20,000 employees who are innovating what’s next for our customers around the world."
The investment is supported by the Irish Government through IDA Ireland.
"Motorola Solutions is an iconic American company known for its work over many decades to support public safety and first responders," said U.S. Ambassador to Ireland, Claire D. Cronin. "Today’s announcement of its new Research and Development Centre in Cork marks a significant step forward in the company’s commitment to Ireland and in further expanding its innovation footprint in technology that plays a vital role around the world to help keep people safe, today and in the future. It also recognizes the highly skilled talent in Ireland and further bolsters the strong trade and investment relationships between the United States and Ireland."
The new R&D Centre, planned for Cork’s vibrant city centre, complements Motorola Solutions’ existing footprint in Ireland, which is focused on delivering the emergency services’ secure communications network, Ireland’s National Digital Radio Service.
"It’s fantastic news that Motorola Solutions has chosen Cork City for their new global R&D Centre," said Peter Burke TD, Minister for Enterprise, Trade & Employment. "Regional investment is a priority for Government and the creation of 200 highly skilled jobs in R&D is a significant boost for the region. The new Centre will be a welcome addition to the already thriving city centre and will provide exciting new work opportunities for technology talent. It is encouraging to see new investments in R&D technologies, which is very much in line with our National AI and Digital strategies. I want to thank Motorola Solutions for their continued investment in Ireland and I wish all the team the best with this new venture."
The company embraces a people-first philosophy and encourages its 20,000+ employees to share their unique perspectives to influence new ideas, tackle challenges and make an impact. The team in Cork will join a global force of talent focused on developing communications, video security, access control, artificial intelligence and command centre technologies to help address the growing scale of safety and security challenges.
Motorola Solutions’ communications portfolio is hallmarked by a history of firsts, including the first car radio, the Apollo missions, and introduction of the APX NEXT smart radio, that brought broadband applications to a two-way radio. With more than $850 million invested in R&D in 2023, employees are enabled to design ingenious solutions that play an essential role in people’s lives.
Details about the centre and role opportunities can be found here: https://www.motorolasolutions.com/en_xu/about/careers/cork-ireland.html
About Motorola Solutions
Motorola Solutions is solving for safer. We build and connect technologies to help protect people, property and places. Our solutions enable the collaboration between public safety agencies and enterprises that’s critical for a proactive approach to safety and security. Learn more about how we’re solving for safer communities, safer schools, safer hospitals, safer businesses – safer everywhere – at www.motorolasolutions.com.
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NetEase - >>> ‘Warcraft’ Returns to China as Blizzard and NetEase Settle Spat
Bloomberg
by Sabrina Mao and Zheping Huang
April 9, 2024
https://finance.yahoo.com/news/warcraft-returns-china-blizzard-netease-010000423.html
(Bloomberg) -- NetEase Inc. reached a new agreement to distribute games in China for Microsoft Corp.’s Blizzard Entertainment, salvaging a 15-year relationship and reviving titles like World of Warcraft for the world’s biggest gaming market.
With the deal, famed franchises like StarCraft, Diablo, Hearthstone and Overwatch will once again be live for players in China. The Hangzhou-based publishing giant and Microsoft’s Activision Blizzard subsidiary halted a longtime partnership in January of last year after failing to agree on an extension, causing a 15% plunge in NetEase shares in Hong Kong.
Separately, Microsoft’s gaming division and NetEase have agreed to explore bringing new NetEase titles to Xbox consoles and other platforms, the companies said in a statement.
“We are thrilled to embark on the next chapter, built on trust and mutual respect, to serve our users in this unique community that we’ve built together,” NetEase Chief Executive Officer William Ding said in the statement. The expiration of the previous deal descended into acrimony when the two sides alleged bad-faith negotiations for a renewal of the terms.
Blizzard suspended most online game services and sales in mainland China when the prior pact expired more than a year ago, cutting off a lucrative collaboration for both parties. Its major release in June 2023 — Diablo IV, which got off to a hot start internationally — hasn’t been officially available in China. The companies now say Blizzard games “will return to the market sequentially” starting in the summer, with further details to be provided at a later date.
Activision Blizzard was acquired in October by Microsoft in a $69 billion deal that set a record for takeovers in the video-game industry. The combined entity ranks No. 3 among global games publishers, behind Tencent Holdings Ltd. and Sony Group Corp., and was expected to seek a rapprochement with NetEase.
First signed in 2008 and renewed in 2019, the NetEase-Blizzard distribution accord has benefited both companies, feeding NetEase with globally recognized hits and giving its US partner a gateway into the world’s biggest PC and mobile gaming arena.
Before NetEase, Blizzard distributed World of Warcraft in China through Shanghai venture The9 from its release in 2004 through 2008. But that partnership ended in a rift, with Chinese players unable to access the game for more than a month. China’s No. 2 gaming giant swooped in as Blizzard sought to find a new local publisher, first signing a deal to run StarCraft II and Warcraft III, then taking over World of Warcraft, which at the time was the most popular online game in China.
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>>> Trump’s Truth Social is now a public company. Experts warn its multibillion-dollar valuation defies logic
by Matt Egan
CNN
March 26, 2024
https://finance.yahoo.com/news/trump-truth-social-going-public-090031597.html
For the first time in almost 30 years, part of Donald Trump’s business empire has gone public. Trading started with a bang, but the frenzy eased considerably by the closing bell, with shares ending well off their highs of the day.
Trump Media & Technology Group, the owner of struggling social media platform Truth Social, began its long-delayed journey as a public company at Tuesday’s opening bell under the ticker symbol “DJT.”
The stock surged about 56% at the open, to $78, and trading was briefly halted for volatility. Trump Media shares stabilized around $70 before fizzling. By the closing bell, Trump Media ended at $57.99, up by a more modest 16% on the day.
Despite the late-day slide, Wall Street is still assigning Trump Media an eye-popping valuation of nearly $11 billion — a price tag that experts warn is untethered to reality.
Shares of Digital World Acquisition Corp., the shell company that became Trump Media Tuesday morning, have spiked more than 200% so far this year. That includes a 35% surge Monday after the deal closed. Shares popped again at the start of trading Tuesday — investors’ first opportunity to trade the stock after the merger, under the new DJT ticker.
The skyrocketing share price comes despite the fact that Trump Media is burning through cash; piling up losses; and its main product, Truth Social, is losing users.
“This is a very unusual situation. The stock is pretty much divorced from fundamentals,” said Jay Ritter, a finance professor at the University of Florida’s Warrington College of Business, who has been studying initial public offerings (IPOs) for over 40 years.
Ritter said the closest parallel would be GameStop, AMC and other so-called meme stocks that skyrocketed during Covid-19 as an army of retail traders piled in. He said Trump Media is likely worth somewhere around $2 a share — nowhere near its closing stock price of $58.
“The underlying business doesn’t seem to be worth much. There is no evidence this is going to become a large, highly profitable company,” he said. “I’m reasonably confident the stock price will eventually drop to $2 a share and could even go below that if the company blows through the money it got from the merger.”
The eye-popping valuation is a massive windfall for Trump, who owns a dominant stake of 79 million shares.
At Tuesday’s opening price of nearly $78, that stake is worth nearly $6 billion, although lock-up restrictions likely prevent Trump from selling or even borrowing against those shares anytime soon. The value of Trump’s stake ended at $4.6 billion at the closing bell.
Trump Media generated just $3.4 million of revenue through the first nine months of last year, according to filings. The company lost $49 million over that span.
And yet the market is valuing Trump Media at approximately $11 billion.
For context, Reddit was only valued at $6.4 billion at its IPO last week — even though it generated 160 times more revenue than Trump Media. (Reddit hauled in $804 million in revenue in 2023, compared with Trump Media’s annualized revenue of about $5 million.)
“At these levels, it appears untethered to its underlying business results,” said Matthew Kennedy, senior IPO strategist at Renaissance Capital. “Eventually, valuations tend to fall back on fundamentals. That means this stock is definitely at risk of plummeting back down to earth.”
Michael Ohlrogge, an associate professor of law at the NYU School of Law, told CNN there is “no way to square the current stock price with anything that would be called a rational valuation for this company.”
Truth Social is tiny
Truth Social faces real challenges and is still dwarfed by its rivals.
Truth Social had just 494,000 monthly active US users on iOS and Android combined in February, according to Similarweb stats provided to CNN. That’s a small fraction of the 75 million on X (formerly known as Twitter) and 142 million on Facebook.
Even Threads had more than 10 times the number of monthly active users that Truth Social had in February, according to Similarweb.
Not only that, but Truth Social is shrinking. Its monthly active users plunged 51% year over year in February, Similarweb stats show. The number of unique visitors to Truth Social’s website was 648,000, down 20% year over year.
Kennedy described Trump Media as a “meme-SPAC,” alluding to both its astronomical valuation and the fact it was formed through a merger with a special purpose acquisition company, or SPAC.
“Stocks that trade on momentum are subject to falling rapidly,” he said.
Jonathan Macey, a law professor at Yale, told CNN last week that the Digital World stock price is “clearly a bubble.”
Of course, history shows that bubbles can always inflate further, and it’s very difficult to pinpoint when they will pop.
That means Trump Media’s share price could keep skyrocketing for now — even if those gains are not backed up by fundamentals. In theory, a rival company or wealthy group could swoop in and acquire Trump Media even at these price levels, although Ritter said that’s very unlikely.
“We’ve already seen with other meme stocks that even if they eventually fall back to reflecting a fundamental value, the process can take quite a long time,” said Ohlrogge, the NYU professor. “There’s every reason to believe that this stock could remain at highly inflated prices much longer, due to the enthusiasm that Trump’s supporters have for it.”
‘Stay away from it’
Matthew Tuttle, CEO of Tuttle Capital Management, told CNN that Trump Media is probably not worth anything close to what the market is valuing it at.
“But it doesn’t really matter,” he said.
Tuttle noted that there is a history of SPACs spiking on their first day of trading, and he placed options bets that stand to make money if the stock shoots up.
“Because of what this is, and because it’s Trump — you’ve got people expecting this thing will take off [on Tuesday,]” he said.
But Tuttle advised everyday investors to use extreme caution trading Trump Media, noting the implied volatility is “insane.”
“Stay away from it,” said Tuttle, who has sold his shares of Digital World but still owns options that would pay out if the stock rises sharply. “Normally, I wouldn’t touch this with a 10-foot pole. But I’m not playing with much money and I already made a lot on this. If I wake up tomorrow and it’s trading at $1, oh well.”
Beyond the valuation concerns, there are other risks involved in Trump Media.
For example, this company’s future is inextricably linked to that of one person: Trump.
“There is a unique key man risk because Donald Trump is the chairman, top shareholder and the most popular user. He is one man, and he’s 77 years old,” said Kennedy.
Not only that, but Trump is facing felony prosecution in multiple simultaneous cases.
Trump Media noted that risk in SEC filings, saying: “Donald J. Trump is the subject of numerous legal proceedings, the scope and scale of which are unprecedented for a former President of the United States and current candidate for that office. An adverse outcome in one or more of the ongoing legal proceedings in which President Trump is involved could negatively impact TMTG and its Truth Social platform.”
A history of Trump bankruptcies
Not only does Trump himself face reputational issues, but his companies have a history of going bankrupt.
The last Trump company to go public, Trump Hotels and Casino Resorts in 1995, used the same DJT ticker symbol. It went bankrupt in 2004 and was delisted from the New York Stock Exchange.
Trump Media even highlighted Trump’s history of bankruptcies as a risk in its SEC filing.
“A number of companies that were associated with President Trump have filed for bankruptcy. There can be no assurances that TMTG will not also become bankrupt,” the company said.
Another question is what happens when the lock-up restrictions on Trump and other key insiders lapse in the coming months.
Trump’s legal troubles could give him a reason to sell his commanding stake, an outcome that would threaten Trump Media’s share price.
Betting on a Trump victory in November
Other insiders, including the sponsor of the SPAC, would also be able to sell.
Like any social media business, Truth Social faces pressure to grow its user base, expand its advertising business and build a subscription service.
Those tasks are complicated by the polarizing political backdrop where at least some portion of the country views the Trump movement skeptically.
Kennedy said that in many ways, Trump Media going public amounts to a “multibillion-dollar bet” on a second Trump term, a return to the White House that could be lucrative for his social media network.
“If he wins in November, Truth Social will probably be the primary means of presidential communication,” said Kennedy. “That’s the bet here.”
Ohlrogge, the NYU professor, agrees that the election could prove to be a real turning point for this company.
“If Trump were to lose the 2024 election, I’d imagine the stock price would crater quite quickly,” he said. “If he were to win, it could conceivably stay higher for longer, maybe much longer.”
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>>> DJT having a good first day: Trump's Truth Social media stock price sees rapid rise
by Bailey Schulz
USA TODAY
March 26, 2024
https://finance.yahoo.com/news/now-trumps-truth-social-hit-134022713.html
Donald Trump's Truth Social stock price skyrocketed during its stock market debut, gaining more than 40% by early Tuesday afternoon.
The parent company of Truth Social, Trump Media & Technology Group, went public Tuesday morning under the ticker DJT, short for Donald J. Trump. The stock was trading at $71.63 as of 1:32 p.m. ET, up nearly $22.
The public listing was made possible by Trump Media's merger with Digital World Acquisition, a special purpose acquisition company, or SPAC. Digital World’s shareholders voted in favor of the merger Friday, and Trump Media took Digital World's place on the Nasdaq on Tuesday.
How much is Truth Social worth?
Before trading opened Tuesday, Truth Social's parent company had a market value of about $6.8 billion. Because Trump owns about 79 million of the 135 million outstanding shares, his stake in the company was worth about $4 billion.
It’s a pricy valuation, especially for a company that has racked up tens of millions of dollars in losses since its 2021 launch and generated just over $3 million in revenue during the first nine months of 2023.
In comparison, Reddit ? a social media platform that brought in more than $800 million in revenue in 2023 ? was valued at roughly $6.4 million for its IPO last week. Its stock was trading at $70.90 as of 1:16 p.m. ET.
While it's "hard to believe" that Truth Social and Reddit are close in valuation, Trump's social media company has been bolstered by investments from loyal Trump supporters, said Derek Horstmeyer, a finance professor at George Mason University in Virginia.
"It's hard to come up with any reasonable metrics that would get you to this valuation," Horstmeyer said.
What is Trump’s net worth?
Truth Social going public means a massive boost to Trump’s net worth, at least on paper.
Trump is not allowed to sell his shares or use them as collateral for a bond for the next six months. He would need approval from the Trump Media board to lift that restriction.
Trump has been ordered to post a $175 million bond as he appeals the full $454 million civil fraud judgment against him. He has also been ordered to pay $83.3 million after a defamation trial loss to advice columnist E. Jean Carroll.
Why is Truth Social’s ticker DJT?
Research shows that familiar names, such as a former president’s initials, can help a company’s stock performance.
One 2006 study by Princeton University psychologists found that stocks with tickers that are easier to pronounce tend to perform better in the first few days of trading. Another study from Pomona College in 2019 verified earlier research that found clever tickers tend to perform better, partly because they are more memorable to investors.
What is Digital World Acquisition?
Digital World is a SPAC, also known as a blank check company. These publicly traded shell companies exist to acquire or merge with private companies and take them public.
Truth Social’s merger with Digital World was first announced in 2021, when the number of companies going public via SPACs surged. The investment vehicles have since faced criticism for being bad deals for retail investors.
Why did Trump launch Truth Social?
Truth Social was founded after Trump was booted from major social media platforms following the Jan. 6, 2021 attack on the Capitol.
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>>> Trump's Truth Social stock soars in first day of trading
Yahoo Finance
by Alexandra Canal
March 26, 2024
https://finance.yahoo.com/news/trumps-truth-social-stock-soars-in-first-day-of-trading-133705717.html
Donald Trump's social media platform Truth Social (DJT) surged more than 30% in its first day of trading on the Nasdaq early Tuesday.
Shares of Trump Media & Technology Group, Truth Social's parent company, were trading above $65 under the ticker symbol "DJT," Trump's initials, around mid-morning.
The company merged with special purpose vehicle Digital World Acquisition Corp. (DWAC) in a deal approved by shareholders last week. Prior to the merger, DWAC had been on the public market since 2021.
Trump founded Truth Social after he was kicked off major social media apps like Facebook and Twitter, the platform now known as X, following the Jan. 6 Capitol riots in 2021. He has since been reinstated on the platforms.
Trump will maintain a roughly 60% stake in Truth Social, with nearly 79 million shares. That translates to a valuation of more than $5 billion based on current trading levels.
The merger comes as the former president faces a $454 million fraud penalty and grapples with a campaign fundraising shortfall as he gears up for a 2024 presidential rematch against current commander-in-chief Joe Biden.
But Trump will have to wait before cashing in his shares.
According to the terms of the merger, stakeholders are subject to a six-month lockup period before selling or transferring shares. The only exception would be if the company's board votes to make a special dispensation.
According to an SEC filing from Digital World, Trump Media lost $49 million in the first nine months of last year and brought in $3.4 million in revenue.
As Yahoo Finance's Rick Newman pointed out, short interest in DWAC stock — bets that the stock price will fall rather than rise — was about 11% of outstanding shares. To note, average short interest in public companies sits in the 3% to 4% range.
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Cogent Communications - >>> Revenue Surge and Dividend Hike: Cogent Communications' 2023 Financials
GuruFocus Research
February 29, 2024
https://finance.yahoo.com/news/revenue-surge-dividend-hike-cogent-123237245.html
On February 29, 2024, Cogent Communications Holdings Inc (NASDAQ:CCOI) released its 8-K filing, revealing a robust financial performance for the fourth quarter and full year of 2023. The company, known for carrying over one-fifth of the world's internet traffic and providing broadband services to businesses, has reported a significant increase in service revenue, both quarterly and annually. This growth is particularly noteworthy given the challenges faced by the telecommunications industry and the complex economic environment.
Financial Performance Highlights
CCOI's service revenue for Q4 2023 was $272.1 million, a slight decrease from Q3 2023 but a substantial 79.0% increase from Q4 2022. The annual service revenue for 2023 reached $940.9 million, up 56.9% from the previous year. These figures reflect the company's strong position in the market and its ability to grow despite external pressures.
The company's GAAP gross profit for Q4 2023 was $29.7 million, nearly doubling from the previous quarter, although it decreased by 41.1% from the previous year. The GAAP gross margin improved to 10.9% in Q4 2023 from 5.5% in Q3 2023. Non-GAAP gross profit for the year ended December 31, 2023, was $397.8 million, with a non-GAAP gross margin of 42.3%.
CCOI's EBITDA, as adjusted for Sprint acquisition costs and cash paid under the IP Transit Services Agreement, was $110.5 million for Q4 2023, with an adjusted EBITDA margin of 40.6%. The basic net income per share was $4.23 for Q4 2023, reflecting the company's profitability.
Strategic Developments and Dividend Increase
CCOI has continued to expand its customer base, with total customer connections increasing by 42.6% year-over-year. The number of on-net buildings also grew, indicating an expansion of the company's physical network infrastructure.
In a strategic move, CCOI acquired Sprint's Wireline Business, which has resulted in a provisional gain on bargain purchase of $1.4 billion. The company also entered into an IP Transit Services Agreement with T-Mobile USA, Inc., which will contribute $700.0 million in aggregate payments to CCOI over a period of 42 months.
Reflecting confidence in its financial health, CCOI's Board approved an increase in the regular quarterly dividend to $0.965 per share for the first quarter of 2024, representing a 1.0% increase from the previous quarter and a 4.3% increase year-over-year.
Market and Operational Challenges
Despite the positive financial results, CCOI has faced challenges, including the residual impact of the COVID-19 pandemic on corporate results. The pandemic has led to a shift in remote work policies, affecting real estate markets and Cogent's corporate revenue. However, as businesses adapt to new work environments and upgrade their internet infrastructure, CCOI anticipates opportunities for growth.
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>>> Direct Digital Holdings (DRCT) - Investors looking for a promising micro-cap stock may want to consider Direct Digital Holdings (NASDAQ:DRCT). Micro cap stocks require more research since fewer media outlets cover them, but the company has exhibited meaningful revenue and earnings growth.
https://finance.yahoo.com/news/market-mavericks-7-growth-stocks-154037454.html
The programmatic advertising company has buy-side and sell-side platforms, with the latter doing most of the work for the company’s financials. Revenue increased by 129% year-over-year in the third quarter of 2023 which prompted the company to raise its full-year guidance.
However, the bigger win came from net income which more than quadrupled year-over-year. Net income reached $3.35 million as a part of the big surge. Guidance suggests revenue growth will remain strong for a while. However, if the company can continue to expand its net profit margins, the stock’s returns can give big tech a run for its money.
Investors have gotten excited about the stock. Shares are up by 291% over the past year which is largely due to a dramatic rally that started in mid-November. This makes it one of those growth stocks to consider.
The advertising company should report Q4 2023 earnings near the end of March. Investors who are on the fence may want to wait for those earnings to come out before making a decision.
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>>> Cogent Communications Holdings, Inc. (CCOI), through its subsidiaries, provides high-speed Internet access, private network, and data center colocation space services in North America, Europe, Oceania, South America, and Africa. The company offers on-net Internet access and private network services to law firms, financial services firms, and advertising and marketing firms, as well as heath care providers, educational institutions and other professional services businesses, other Internet service providers, telephone companies, cable television companies, web hosting companies, media service providers, mobile phone operators, content delivery network companies, and commercial content and application service providers. It also provides Internet access and private network services to customers that are not located in buildings directly connected to its network; and on-net services to customers located in buildings that are physically connected to its network. In addition, the company offers off-net services to corporate customers using other carriers' circuits to provide the last mile portion of the link from the customers' premises to the network. Further, it operates data centers that allow its customers to collocate their equipment and access the network. It serves primarily to small and medium-sized businesses, communications service providers, and other bandwidth-intensive organizations. Cogent Communications Holdings, Inc. was founded in 1999 and is headquartered in Washington, the District of Columbia.
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DRCT, PERI, SPT - >>> 3 High-Risk, High-Reward Small-Cap Stocks to Buy Now
InvestorPlace
by Marc Guberti
Feb 19, 2024
https://finance.yahoo.com/news/3-high-risk-high-reward-112700553.html
Small-cap stocks can produce some of the largest gains in the stock market. These stocks often fly under the radar because fewer analysts do the necessary research to find them. Furthermore, they aren’t plastered all over the news like the Magnificent Seven stocks. This has led to this list of high-risk, high-reward small-cap stocks.
Investing in small cap stocks is riskier because there’s more research involved. You won’t be able to turn to many media sources to find this information, and you will have to interpret earnings reports and stay on top of release dates.
This line of investing can be rewarding, and you will discover three stocks that fit the category. While small cap stocks comprise of stocks with market caps between $250 million and $2 billion, this list will include a company that is well on its way to becoming a small-cap and another firm that recently graduated from the category.
Sprout Social (SPT)
Sprout Social (NASDAQ:SPT) trades at a $3.7 billion market cap and needed a rally that started in November to move out of the conventional small-cap territory. The firm is a social media management tool that helps clients schedule social media posts and build brand awareness. The firm has over 30,000 customers including large corporations and universities. Sprout Social also helps small businesses which gives it a large addressable market.
The company offers a 30-day free trial for its plans but then starts at $249/mo and builds from there. That’s a lot of recurring revenue from each customer, and the financial impact is apparent in earnings reports.
Sprout Social reported $85.5 million in revenue in the third quarter of 2023. This represents a 31% year-over-year growth rate. Annual recurring revenue came in at $359.5 million and was up by 33% year-over-year. Remaining performance obligations increased by 67% year-over-year.
Shares have jumped by 250% over the past five years but are slightly down over the past year. The major component holding SPT back from more gains is profitability. The company reported a $23 million GAAP loss in the quarter compared to a $13.9 million GAAP loss in the same time next year.
Sprout Social has done a better job in previous quarters to minimize losses and get closer to profitability. If the firm reduces losses in the next quarter, the equity is likely to rally. This makes it one of those high-risk, high-reward small-cap stocks to consider.
Direct Digital Holdings (DRCT)
Direct Digital Holdings (NASDAQ:DRCT) isn’t quite a small-cap stock, but it may have joined the class by the time you read this article. The equity has a $240 million market cap and trades at a 54 P/E ratio. However, shares trade at a more attractive 18 forward P/E ratio. Shares are up by over 500% since the start of November.
The programmatic advertising company’s Q3 2023 earnings report explains why it has attracted more investors. Revenue increased by 129% year-over-year while the company expects to deliver 101% year-over-year revenue growth for the full year. That’s an acceleration from the previous two quarters’ growth rates.
Direct Digital Holdings makes most of its revenue from Colossus, its sell-side advertising platform. Revenue from this platform surged by 174% year-over-year while buy-side advertising revenue went up by 10% year-over-year. Luckily, more than 85% of the company’s total revenue comes from its sell-side platform.
The advertising firm’s net income more than quadrupled in this quarter. If DRCT can maintain high net income growth and get its profit margins in the double-digits, this stock can generate significant returns for long-term investors. This makes it one of those high-risk, high-reward small-cap stocks to buy.
Perion (PERI)
Perion (NASDAQ:PERI) is a small adtech company that is growing in several key advertising channels. Despite a decent earnings report, shares plunged by more than 20% on the news and have created a buying opportunity.
This quarter featured “notable growth in Search, CTV, and Media” which resulted in a 12% year-over-year revenue increase. Two concerns with the earnings report are GAAP net income growth and a reliance on search advertising revenue.
GAAP net income growth only came in at 2% year-over-year which the company will have to fix in future quarters. Perion has been a top performer with a 694% gain over the past five years, so it is plausible that the company recovers on this front.
Perion’s search advertising revenue grew by 33% year-over-year, but that revenue depends on a partnership with Bing. The two companies have to renew their contract in 2024 or else that revenue stream will go away. The companies have worked together for over a decade, so it’s very likely that this contract gets renewed. However, the market is keeping the stock down due to this uncertainty.
Shares trade at a very affordable 8 forward P/E ratio and a 0.35 PEG ratio. Perion stock should soar if (and likely when) a contract with Bing gets renewed this October.
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>>> Direct Digital Holdings, Inc. (DRCT) operates as an end-to-end full-service programmatic advertising platform. The company's platform primarily focuses on providing advertising technology, data-driven campaign optimization, and other solutions to underserved and less efficient markets on both the buy- and sell-side of the digital advertising ecosystem. It serves various industry verticals, such as travel, healthcare, education, financial services, consumer products, and other sectors with a focus on small and mid-sized businesses. The company was founded in 2018 and is headquartered in Houston, Texas. <<<
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Re-post - >>> Berkshire Buys More Liberty Sirius XM, Now Owns $2.2 Billion of Tracking Stock
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=173993547
By: Barrons | March 7, 2024
Berkshire Hathaway purchased about 3.7 million shares of Liberty Sirius XM Holdings, the tracking stock for Sirius XM Holdings, in recent days, bringing its stake in the tracker to almost 76 million shares, according to filings late Wednesday.
Berkshire now holds $2.2 billion of Liberty Sirius XM Holdings, a roughly 23% stake in the company. Berkshire purchased both the voting Class A shares an d nonvoting Class C shares for a total of more than $100 million from Monday through Wednesday of this week. Sirius XM operates a satellite radio network with over 32 million paying subscribers.
This continues intermittent purchases of the tracking stock so far this year by Berkshire. The Liberty Sirius XM voting A stock ended Wednesday at $29.38, down 0.1% while the nonvoting C shares finished at $29.25, off 0.2%.
Berkshire appears to be looking to capitalize on the spread between the value of the Sirius XM stock that will be received by Liberty Sirius XM shareholders under a deal reached in late 2023 and the current price of the tracking stock.
Sirius XM ended Wednesday at $4.19, up 0.5%. Liberty Sirius XM holders are due to get 8.4 shares of New Sirius XM for each share of the tracking stock. That's worth about $35, allowing Sirius XM holders to make about 20% ($6 a share divided by the current tracker stock price). The deal is due to close in the third quarter. Current Sirius XM holders will get the new stock on a share-for-share basis.
The spread has narrowed so far in 2024 as Sirius XM stock has come down from a price of about $5.50 in late December. The spread could narrow further as the closing date approaches and after the transaction closes — assuming the deal occurs. Liberty Media owns over 80% of Sirius XM and that stock could start hitting the market once the deal closes.
Some investors have bought the tracking stock and shorted Sirius to capture the spread, but that can be difficult to do now given the thin float in Sirius, high short interest in the stock, and high borrowing costs to short it.
Some Berkshire watchers think the company's Liberty Sirius XM holding is overseen by Ted Weschler, one of two Berkshire investment managers who run about 10% of the roughly $350 billion equity portfolio. CEO Warren Buffett oversees the rest. Weschler is believed to be close to Liberty Media CEO Greg Maffei.
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Sirius XM - >>> Warren Buffett's Latest $2.1 Billion Buy Brings His Total Investment in This Stock to More Than $74 Billion in Under 6 Years
by Sean Williams
Motley Fool
Mar 4, 2024
https://finance.yahoo.com/news/warren-buffetts-latest-2-1-100600894.html
For nearly six decades, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has been putting on a clinic for Wall Street. Whereas the benchmark S&P 500 has delivered a total return, including dividends, of a little north of 33,000% since the "Oracle of Omaha" took over as CEO in the mid-1960s, Berkshire's Class A shares (BRK.A) have galloped higher by an aggregate of more than 5,000,000% as of the closing bell on Feb. 28, 2024! An outperformance of this magnitude is going to get you noticed by professional and retail investors.
Warren Buffett's phenomenal track record is a big reason why there's a buzz surrounding Berkshire Hathaway every time the company files Form 13F with the Securities and Exchange Commission (SEC). A 13F gives investors an over-the-shoulder look at what Wall Street's greatest money managers have been buying and selling, and is a required quarterly filing for institutions and investors with at least $100 million in assets under management.
Warren Buffett has been adding to a core position and building up his stake in a value stock
Throughout 2023, the Oracle of Omaha and his investment aides, Todd Combs and Ted Weschler, were very selective about their purchases. One core holding that's continued to see somewhat regular additions is energy stock Occidental Petroleum (NYSE: OXY).
Accounting for Berkshire's latest share purchases during the first week of February, Buffett's company has gobbled up more than 248 million shares of Occidental Petroleum since the start of 2022. That's a roughly $15 billion position, with $34 billion, in total, devoted to energy stocks, including Berkshire's position in Chevron.
Having 9% of Berkshire's invested assets tied up in two integrated oil and gas stocks is a pretty clear message that the company's brightest minds anticipate crude oil prices will remain elevated for an extended period. With the global supply of oil remaining tight following years of capital underinvestment tied to the COVID-19 pandemic, there's a real possibility the spot price of crude oil heads even higher.
What makes Occidental Petroleum an intriguing investment in the energy arena is its revenue breakdown. Despite being an integrated operator that generates some of its revenue from downstream chemical plants, Occidental derives the lion's share of its sales from drilling. If the spot price of crude oil climbs, it'll benefit more than virtually any other integrated oil and gas company.
Beyond Occidental, we've also seen Warren Buffett and his team piling back into satellite-radio operator Sirius XM Holdings (NASDAQ: SIRI). Though radio operators are often highly dependent on advertising revenue to keep the lights on, Sirius XM has an assortment of competitive advantages working in its favor that should help it navigate any economic climate better than terrestrial and online radio companies.
To start with the obvious, Sirius XM is the only licensed satellite-radio operator. While this doesn't mean it's free of competition for listeners, it does give the company reasonably strong subscription-pricing power.
What's arguably even more important with Sirius XM is how the company generates revenue. Whereas terrestrial and online radio providers are reliant on advertising revenue, only 20% of Sirius XM's sales came from advertising in 2023. Meanwhile, a whopping 77% of Sirius XM's revenue can be traced to subscriptions. Subscribers are less likely to cancel their service during an economic downturn than businesses are to meaningfully pare back their advertising budgets.
Sirius XM is also historically cheap. Shares are currently trading for a multiple of 13 times forward-year earnings, which is a 32% discount to its average forward-year earnings multiple over the trailing five-year period.
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>>> The sun just launched three huge solar flares in 24 hours. What it means.
The Washington Post
by Matthew Cappucci
2-22-24
https://www.msn.com/en-us/news/world/the-sun-just-launched-three-huge-solar-flares-in-24-hours-what-it-means/ar-BB1iKdQD?OCID=ansmsnnews11
Three top-tier X-class solar flares launched off the sun between Wednesday and Thursday. The first two occurred seven hours apart, coming in at X1.9 and X1.6 magnitude respectively. The third, the most powerful of the current 11-year “solar cycle,” ranked an impressive X6.3.
Solar flares, or bursts of radiation, are ranked on a scale that goes from A, B and C to M and X, in increasing order of intensity. They usually originate from sunspots, or bruiselike discolorations on the surface of the sun.
Sunspots are most common near the height of the 11-year solar cycle. The current cycle, number 25, is expected to reach its peak this year. The more sunspots, the more opportunities for solar flares. Solar flares and accompanying coronal mass ejections, or CMEs, can influence “space weather” across the solar system, and even here on Earth. CMEs are slower shock waves of magnetic energy from the sun. Flares can reach Earth in minutes, but CMEs usually take at least a day.
All three of the X-class solar flares disrupted shortwave radio communications on Earth. But the first two flares did not release a CME. And, after careful review, scientists confirmed that the third also did not produce one. Therefore, no additional impact on Earth is expected.
High-frequency radio waves propagate by bouncing off electrons in Earth’s ionosphere. That’s a layer of Earth’s atmosphere between 50 and 600 miles above the ground
When a solar flare occurs, that radiation travels toward Earth at the speed of light. It can ionize additional particles in the lower ionosphere. Radio waves sent from devices below it then impact that extra-ionized layer and lose energy, and aren’t able to be bent by ions at the top of the ionosphere. That means signals can’t travel very far, and radio blackouts are possible.
Three back-to-back radio blackouts occurred in response to the trio of flares, but primarily over the Pacific and Indian oceans. They were rated “R3” or greater on a 1 through 5 scale.
According to the National Oceanic and Atmospheric Administration’s Space Weather Prediction Center, that results in a “wide area blackout of [high frequency] radio communication, [and] loss of radio contact for about an hour on sunlit side of Earth.” Low-frequency navigation signals, like those used on aircraft traveling overseas, can be degraded too.
Disruptions to AT&T cell service?
There was rampant speculation that Thursday morning’s pervasive AT&T blackout was tied to Wednesday’s solar flares. The Space Weather Prediction Center, however, released a statement noting that “it is unlikely that these flares contributed to the widely reported cellular network outage.”
Joe Kunches, former chief of operations at the center, told The Washington Post that “there is no chance” of any connection.
“First it occurred in the night hours for North America, so any possible impact would have not occurred here. Flares and their associated radio bursts only impact dayside systems if at all,” Kunches said in an email. “And, even if this was to occur during your daylight hours, chances are near nil that cell service would be affected.”
Solar flares don’t usually affect cellphone frequencies. Radio blackouts associated with solar flares affect transmissions in the high-frequency 3 to 30 megahertz band. Most cellphone carriers operate between 698 and 806 megahertz.
Finally, Wednesday’s flares didn’t unleash CMEs. Such blasts can induce electric currents that can overwhelm circuitry in satellites and even knock them offline or destroy them. In February of 2022, 40 SpaceX satellites were knocked out by a CME. Even had there been a CME, it probably would have taken more than a day to reach Earth.
Because the first two flares on Wednesday didn’t release CMEs, it means skywatchers won’t be treated to displays of the northern lights, as is often the case when such geomagnetic storms reach Earth.
The third solar flare, which was the biggest and occurred Thursday evening Eastern time, also didn’t produce a CME.
Since CMEs are slower-moving than solar flares, it generally takes several hours for them to fully radiate away from the solar disk and become visible on sensors. That’s why experts weren’t initially sure if any CMEs had been launched. Now that time has passed, it’s apparent none were.
Interestingly, there could be a few auroral displays in the high latitudes on Sunday night as a minor CME — unrelated to the flares -- grazes the Earth.
There may be more opportunities for X-class flares and CMEs in the days ahead. The parent sunspot cluster that launched all three, dubbed “Active Region 3590,” is still crackling.
The sunspot is so big that you can view it with your own eyes — but you’ll need eclipse glasses to do so safely.
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>>> What is causing AT&T outage? Details about nationwide cellular outages
by Aaron A. Bedoya
El Paso Times
February 22, 2024
https://www.yahoo.com/tech/causing-t-outage-details-nationwide-163034869.html
A number of Americans are dealing with cellular outages on AT&T, Cricket Wireless, Verizon, T-Mobile and other service providers, according to data from Downdetector.
AT&T had more than 73,000 outages around 7:30 a.m. MT, in locations including Houston, Atlanta and Chicago. The outages began at approximately 1:30 a.m. MT. The carrier has more than 240 million subscribers, the country's largest.
What is causing AT&T outage?
So far, no reason has been given for the outages. But Lee McKnight, an associate professor in the iSchool at Syracuse University, believes the most likely cause of the outage is a cloud misconfiguration, or human error.
"A possible but far less likely outcome is an intentional malicious hack of ATT's network, but the diffuse pattern of outages across the country suggests something more fundamental," McKnight said in an emailed statement.
Who else was affected by outage?
Cricket Wireless, which is owned by AT&T, had more than 13,000, the outage tracking website said Thursday.
"Some of our customers are experiencing wireless service interruptions this morning. We are working urgently to restore service to them. We encourage the use of Wi-Fi calling until service is restored," AT&T and Cricket said in a statement.
Verizon had more than 4,000 outages and T-Mobile had more than 1,800 outages. Boost Mobile had about 700 outages.
"Verizon's network is operating normally. Some customers experienced issues this morning when calling or texting with customers served by another carrier. We are continuing to monitor the situation," Verizon said.
Customers can also sign in to their Verizon account to check for outages.
Additional outage tips are available on the Verizon service outage information.
AT&T customers can check for service outage information by using the company's outage map or downloading the AT&T Smart Home Manager app.
Is there a T-Mobile outage?
T-Mobile said that it did not experience an outage.
"Our network is operating normally. Down Detector is likely reflecting challenges our customers were having attempting to connect to users on other networks," T-Mobile said.
If customers ever experience service problems, T-Mobile does not offer an outage map, but customers can find support contact information on the company's website.
iPhone SOS message
Some iPhone users have seen SOS messages displayed in the status bar on their cellphones. The message indicates that the device is having trouble connecting to their cellular provider's network, but it can make emergency calls through other carrier networks, according to Apple Support.
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>>> What are space nukes, the 'indiscriminate' satellite weapon raising tensions between Washington and Moscow?
CNBC
2-22-24
by Karen Gilchrist
https://www.msn.com/en-us/news/world/what-are-space-nukes-the-indiscriminate-satellite-weapon-raising-tensions-between-washington-and-moscow/ar-BB1iHaRO?cvid=7e761945afa14a34f58c0faa41d580fe&ei=59
A fresh spat between Washington and Moscow has raised alarm about the potential risk of a space-based nuclear satellite attack.
Russia on Tuesday denied U.S. claims that it was developing a space-based anti-satellite nuclear weapon whose detonation could cause chaos to communications systems on Earth.
Space-based anti-satellite nuclear weapons — or so-called space nukes — are a type of weapon designed to damage or destroy satellite systems, either for strategic military or disruptive purposes.
A fresh spat between Washington and Moscow has raised alarm about the potential risk of a space-based nuclear satellite attack which could cause chaos to critical communications systems on Earth.
Russia denied U.S. claims that it was developing a space-based anti-satellite nuclear weapon, with President Vladimir Putin saying Tuesday that the Kremlin was "categorically against" the deployment of nuclear weapons in space, and accusing the White House of scaring lawmakers into passing a new aid package for Ukraine.
It comes after a Reuters report emerged earlier Tuesday, citing one source, that said the U.S. believes Moscow is developing a space nuke whose detonation could knock out the satellites underpinning critical U.S. infrastructure, including military communications and mobile phone services. CNBC could not independently verify the report.
Alarm bells around Russia's nuclear advancements were first raised last week when U.S. House Intelligence Committee Chairman Mike Turner warned of a "serious national security threat" related to Russian capabilities in space.
President Joe Biden later said Moscow appears to be developing an anti-satellite weapon but noted that it posed no urgent "nuclear threat" to the U.S. people, and said that he hoped Russia would not deploy it. However, one source familiar with the matter told Bloomberg that such a capability could be launched into orbit as soon as this year.
Analysts told CNBC that the deployment of such a weapon could cause "indiscriminate" damage, reaping havoc on the systems on which people rely for everyday services such as payments, GPS navigation and even the weather.
"Space is integral to our daily lives, whether we realize it or not," said Kari Bingen, director of the aerospace security project and senior fellow in the international security program at the Center for Strategic and International Studies.
What are space nukes and what disruption could they cause?
Space-based anti-satellite nuclear weapons — or so-called space nukes — are a type of weapon designed to damage or destroy satellite systems. That might be for strategic purposes, for instance to incapacitate an opponent's military operations, or disruptive aims, such as disabling civilian telecoms infrastructure.
A space nuke could be deployed either from Earth or from space, ultimately creating a huge electromagnetic pulse, or electrical surge, which could destroy satellites and fry electronic systems. The release of radiation into the Earth's magnetic field could also degrade space-based satellites over time — though it is unlikely that radiation would cause direct harm to humans.
"It's an indiscriminate weapon," Bingen said. "Detonation would be omnidirectional."
No such weapon has been used in warfare so far, though China, Russia and the U.S. have all used them to shoot down their own satellites in demonstrations of military might.
A hostile deployment could have serious ramifications for the extensive global satellite network.
As of April 2023, there were nearly 7,800 operational satellites in Earth's orbit, according to the United Nations Office for Outer Space Affairs, supporting everything from phone and internet networks to televisions, financial services, agricultural systems and space surveillance.
Satellites are also critical to military operations, helping to collect intelligence and detect missile launches as well as enabling navigation and communications. Starlink, the Elon Musk-owned satellite network, for instance, provided Ukrainian forces with uninterrupted communication on the battlefield at the start of the war — though concerns have since arisen that Russia is co-opting such services in occupied areas.
The precise nature of any Russian-made anti-satellite system is currently unclear. However, analysts told Reuters they believe it is likely to use nuclear energy to blind, jam or fry the electronics inside satellites — rather than being a nuclear warhead designed to shoot them down.
The potential impact of an anti-satellite attack would also depend on the altitude of the targeted device and its proximity to other satellites. Analysts told Bloomberg that damage to a satellite in low Earth orbit — the standard position of most commercial satellites — could fry other satellites for hundreds of miles.
"All of it depends on where a detonation would be and what satellites are in that vicinity," Bingen said.
How likely is an anti-satellite attack?
The deployment of a space-based nuclear weapon would mark a major advancement of Russia's military capabilities and a serious escalation of geopolitical tensions.
The U.S. has already said it believes that the system Russia is developing would violate the Outer Space Treaty — a 1967 agreement barring signatories, including Russia and the U.S., from placing "in orbit around the Earth any objects carrying nuclear weapons or any other kinds of weapons of mass destruction."
Moreover, it would signal a direct effort to undermine U.S. national and economic security.
"They [Russia] have observed how important space capabilities are to our national security and our economic viability," Bingen said.
In the face of such vulnerabilities, the U.S. has been shifting its strategy for space architecture over recent administrations, opting for more widely distributed models comprised of more numerous and smaller satellites. But significant vulnerabilities remain.
"It is incredibly hard to defend against. There is no silver bullet solution," Bingen said.
The threat of nuclear conflict has been ratcheting up since the start of Russia's full-scale invasion of Ukraine in February 2022, marking a retreat from Cold War-era arms control treaties. In 2023, Putin suspended Russia's observation of the New START treaty, the last remaining accord limiting the size of nuclear arsenals in the U.S. and Russia.
Still, Bingen said she believes the use of such a tool would remain a "weapon of last resort" for Russia.
"It would be crossing a nuclear threshold, so that's still an incredibly grave decision. I would have to believe it would be more along the lines of a weapon of last resort," she said.
The next military frontier
Space is often positioned as the next geopolitical frontier, presenting a new domain for military combat and international disputes.
Space defense spending jumped to an estimated $54 billion in 2022, up from $45 billion the year prior, according to the latest figures from the U.S. nonprofit Space Foundation. The U.S. was seen to lead that charge, though the report acknowledged that official figures for Russia and China were harder to obtain.
NATO Secretary-General Jens Stoltenberg told CNBC on Saturday that the military alliance had long been aware of the "challenges and threats" of space, and noted that it was ready to defend any space-based attack.
A 2021 revision to NATO's space policy said that an attack to, from or within space would present a "clear challenge" to the alliance and could lead to the invocation of its Article 5 mutual defense clause.
"NATO is prepared to defend all allies against any threat in any domain," he told CNBC's Silvia Amaro on Saturday at the Munich Security Conference.
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Charter Communications (CHTR) - >>> 4 Warren Buffett Stocks to Buy Now
Many of the publicly traded stocks held by Berkshire Hathaway are fairly valued or overvalued today, according to Morningstar’s metrics. Here are some of the stocks among its holdings in the latest quarter that looked undervalued as of Feb. 13, 2024.
Charter Communications CHTR
Citigroup C
Kraft Heinz KHC
Kroger KR
Here’s a little bit about why we like each of these stocks at these prices, along with some key metrics for each. All data is as of Feb.
Charter Communications
Morningstar Rating: 5 stars
Morningstar Economic Moat Rating: Narrow
Morningstar Capital Allocation Rating: Standard
Industry: Telecom Services
Berkshire Hathaway owns about 2.6% of Charter Communications’ stock. The company is the result of a 2016 merger of three cable companies: legacy Charter, Time Warner Cable, and Bright House Networks. We think the company has carved out a narrow economic moat, thanks to its efficient scale and cost advantage. Charter Communications stock currently trades a whopping 47% below our $550 fair value estimate.
Here’s what Morningstar director Mike Hodel had to say about the stock after the company’s fourth-quarter earnings release:
Ugly headline numbers marred Charter’s fourth-quarter results. While we don’t see much reason to change our long-term view of the firm, the next couple of years are shaping up to be more challenging than we had expected. We are trimming our fair value estimate to $550 from $580, but we believe the market has overreacted to current weakness.
Customer metrics were very weak, especially given Charter's emphasis on volumes over price. The firm lost 61,000 net broadband customers during the quarter, far worse than the 105,000 added a year ago and the first loss since the second quarter of 2022. Management didn’t flag any recent changes in the competitive environment. Fixed-wireless customer gains and fixed-line results from AT&T and Verizon were generally consistent with recent performance. Charter also claims that it hasn’t seen an impact on broadband customer losses as Spectrum One bundle discounts expire. We agree with management that small changes in customer wins and losses get undue attention when net customer growth is near zero, but those changes haven’t gone in Charter’s favor recently.
Average revenue per residential broadband customer increased only 2.2% year over year, as Spectrum One bundle discounts are allocated between broadband and wireless revenue. Total revenue per residential customer was roughly flat versus a year ago, with television losses offsetting wireless and broadband gains. Residential revenue was flat year over year and total revenue increased 0.3% on modest business services growth, largely offset by a sharp drop in political ad revenue.
Management provided capital spending expectations through 2027 to shed more light on the firm’s investment plans. Charter expects annual spending in 2024 and 2025 to be above $12 billion, about $1 billion more in total than we had forecast. The firm believes spending will drop sharply in 2027, excluding any additional subsidized project wins, to $8 billion, which we suspect is overly aggressive.
Mike Hodel, Morningstar director
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DWAC, Rumble - >>> 2 Stocks Surging on Donald Trump's Presidential Bid
Benzinga
by Joey Solitro
January 23, 2024
https://finance.yahoo.com/news/2-stocks-surging-donald-trumps-163750792.html
After Donald Trump's decisive win in the Iowa caucus and two opponents dropping out and endorsing him – Vivek Ramaswamy and Ron Desantis – it’s becoming clear who the Republican nominee will be. All the while, two stocks have seen strong rallies on Trump’s chances to make his return to the White House, and they could continue higher following the New Hampshire primary, where Trump is the hands-down favorite.
Let’s take a look at each.
Digital World Acquisition Corp.
Digital World Acquisition Corp. (NASDAQ:DWAC) is a special purpose acquisition corporation (SPAC) that is trying to merge with the former president's Trump Media & Technology Group, which is behind the Truth Social app.
Digital World’s stock has surged over 175% since Trump’s win in Iowa, including a rally of over 88% yesterday. While the valuation of the combined company may be getting a bit rich, there’s no telling where traders could take it going forward, especially if the merger with Truth Social closes.
Rumble Inc.
Rumble Inc. (NASDAQ:RUM) is an online video-sharing platform that has set itself apart from competitors by allowing people to share anything that they believe in without the fear of being restricted or taken down. This has resonated well with conservative voices who said they were removed or shadow-banned on other platforms.
Rumble’s stock has surged more than 60% since Trump’s win in Iowa, including a rally of more than 15% at the start of trading today. Yesterday’s rally of more than 36% was helped by announcement of a partnership with Barstool Sports.
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Apple - >>> Why Wall Street is cooling on Apple stock
Yahoo Finance
by Hamza Shaban
January 4, 2024
https://finance.yahoo.com/news/why-wall-street-is-cooling-on-apple-stock-194143216.html
The brightest light on Wall Street is dimmer at the start of 2024.
Apple (AAPL), the most valuable company on the market, has endured a bruising run in the first days of the new year. The iPhone maker, which commands about 7% of the weight of the S&P 500 (^GSPC) index, steering the fate of investor portfolios, drew two stock downgrades this week, pulling shares down more than 5% and raising concerns about weakening iPhone demand.
Barclays struck the first blow. Analysts there cut Apple's rating to Underweight and dropped their price target to $160, representing what was a roughly 17% stock price drop for the tech giant from last year.
"We rate Apple Under Weight as questions persist about the deterioration of iPhone upgrade demand with rising competition in the premium smartphone segment," the analysts wrote.
The follow-up punch landed Thursday, when analysts at Piper Sandler downgraded their rating on Apple's stock to Neutral from Overweight and sliced their price target by $15 to $205. Apple shares were trading hands at around $182 as of Thursday afternoon.
"We are concerned about handset inventories entering into 1H24 and also feel that growth rates have peaked for unit sales," said lead analyst Harsh Kumar in a note to clients. "Deteriorating macro environment in China could also weigh on handset business."
The percentage of analysts with a bullish rating on the stock is at a three-year low, according to Bloomberg data.
Apple's iPhone revenue sank about $5 billion in 2023 from the year prior. The flagship iPhone accounts for roughly half the company’s total revenue. Sales of Macs, iPads, and wearables also declined, as rising inflation and interest rates pressured consumers.
But bullish analysts focus on Apple's growing services businesses, which swelled from $78 billion in 2022 to $85 billion in 2023. In the most recent quarter revenue from services ballooned by almost 20% compared to the same period the year before. Apple's enormous user base and the strength of its services are a crucial component of more optimistic readings on the company's future. Wedbush analysts led by Dan Ives pin the value of Apple's services business as high as $1.6 trillion and predict that Cupertino will become the first $4 trillion company by the end of 2024.
Skeptical observers, however, see heightened risks even in Apple's most promising segment. Barclays noted that services might attract more regulatory scrutiny. Investigations into the app store could intensify, especially as other tech giants brace for a wave of significant antitrust rulings this year. How Big Tech figures into the US presidential election and how aggressively the next administration will pursue competition enforcement is another major factor for tech stocks.
Apple's lucrative agreement to use Google as the default search engine in its Safari browser, which is estimated to bring in billions of dollars to its services business, could also be under threat. Closing arguments for the Department of Justice's antitrust case against the search giant are scheduled for the spring.
Apple's dimming prospects among some analysts coincide with a stock performance that lags behind other members of the Magnificent Seven.
All the names in the elite, tech-centric group handily beat out the benchmark S&P 500 index. But Apple claimed the lowest position, rising roughly 50% in 2023. That’s nothing to sneeze at, but is notable compared to the staggering gains of Nvidia (NVDA) and Meta (META), up 239% and 194%, respectively, or even Microsoft's (MSFT) more modest 57% rise. The Nasdaq 100's (^NDX) increase of 54% managed to edge out Apple too.
Where much of the tech world and even players outside it have scrambled to get in on the AI hype — releasing products, announcing new ventures or simply reciting the words "AI" — Apple CEO Tim Cook has taken a more subtle approach. That too may have played a factor in the market's cooling reception.
In recent earnings calls, Cook has explained that AI is already integrated into the Apple consumer experience. It's just that the company doesn't call out the technologies explicitly, as if it were a marketing gimmick, but relies instead on weaving AI into its products and focusing on the customer benefit. In another rhetorical move that appeared to be gently critical of other tech leaders, Cook said the company tends to unveil new technologies when they are ready for users. And not before.
If there is a consumer tech company defined by how its products make users feel — for the vibes rather than the intricacies of its software, it's Apple. So not showboating about what's coming in the AI development cycle has its benefits.
But a more pessimistic interpretation is that as rivals like Microsoft and Meta lean into their large language models, framing generative AI as tech's next great frontier, Apple is getting left behind. And most of us already have phones.
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>>> Motorola Solutions, Inc. (MSI) provides public safety and enterprise security solutions in the United States, the United Kingdom, Canada, and internationally. The company operates in two segments, Products and Systems Integration, and Software and Services. The Products and Systems Integration segment offers a portfolio of infrastructure, devices, accessories, and video security devices and infrastructure, as well as the implementation and integration of systems, devices, software, and applications for government, public safety, and commercial customers who operate private communications networks and video security solutions, as well as manage a mobile workforce. Its land mobile radio communications, and video security and access control devices include two-way portable and vehicle-mounted radios, fixed and mobile video cameras, and accessories; radio network core and central processing software, base stations, consoles, and repeaters; and video analytics, network video management hardware and software, and access control solutions. The Software and Services segment provides public safety and enterprise command center, unified communications applications, mobile video equipment, and video software solutions; repair, technical support, and maintenance services; and monitoring, software updates, and cybersecurity services. The company was formerly known as Motorola, Inc. and changed its name to Motorola Solutions, Inc. in January 2011. Motorola Solutions, Inc. was founded in 1928 and is headquartered in Chicago, Illinois.
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>>> Instagram Launch of Twitter Rival ‘Threads’ Expected on Thursday
Bloomberg
Sarah Frier
July 3, 2023
https://finance.yahoo.com/news/instagram-launch-twitter-rival-threads-231226106.html
(Bloomberg) -- Instagram’s highly anticipated Twitter rival is expected to launch Thursday, according to a listing on Apple Inc.’s App Store.
The app, called Threads, will function similarly to Twitter, with text-based posts that can be liked, commented on and shared, according to examples of screenshots on the App Store listing. People will be able to follow the accounts they follow on Instagram and keep their same user name. Instagram, owned by Meta Platforms Inc., declined to comment.
With the launch, Meta is seeking to take advantage of Twitter’s problems since the social media service was taken over last year by Elon Musk. Among the issues that have angered users, and spurred them to seek alternative platforms, are Twitter’s loosening content moderation policies, and requiring a monthly subscription fee to be labeled as an authentic account. There are also problems with site reliability. On Saturday, Twitter began temporarily limiting the number of posts users can see.
Twitter’s existing rivals, such as Mastodon and Bluesky, are more nascent and haven’t yet built their networks to be viable alternatives. Instagram has been touting its forthcoming app with various celebrities and influencers for months, aiming to generate a buzz when it launches.
The app is available for “pre-order” and is “expected” on Thursday, according to the App Store listing. There, Threads is described as “where communities come together to discuss everything from the topics you care about today, to what’ll be trending tomorrow.”
Meta has a long history of borrowing ideas from competitors — and it hasn’t always worked out. But when the company’s copycat products succeed, they can catch on quickly. The feature for posts that disappear after 24 hours, called “stories,” was copied from Snapchat in 2016. Now, far more people use that format on Meta’s apps than use Snapchat. Meta more recently made a short-video product similar to TikTok, called “reels.” In earnings calls, company executives have said reels are driving growth on both Instagram and Facebook.
More than 3 billion people daily used at least one of Meta’s apps — Facebook, Instagram and WhatsApp — in the first quarter of the year, the company reported in April.
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>>> Biden announces $42 billion to expand high-speed internet access
by Tony Romm
June 26, 2023
The Washington Post
https://www.msn.com/en-us/news/technology/biden-to-announce-42-billion-to-expand-high-speed-internet-access/ar-AA1d2squ?OCID=ansmsnnews11
President Biden on Monday announced more than $42 billion in new federal funding to expand high-speed internet access nationwide, commencing the largest-ever campaign to help an estimated 8.5 million families and small businesses finally take advantage of modern-day connectivity.
The money, which the government plans to parcel out to states over the next two years, is the centerpiece of a vast and ambitious effort to deliver reliable broadband to the entire country by 2030 — ensuring that even the most far-flung parts of the United States can reap the economic benefits of the digital age.
In a formal unveiling at the White House, the president likened the new infrastructure project to the government’s work to electrify the nation’s darkened heartland in the late 1930s, when nearly 90 percent of farms had no electric power in the face of high costs and prohibitive terrain.
Roughly nine decades later, Biden said that rural communities suffer from a similar disparity known as the “digital divide” — a persistent gap between the families, workers and employers who have high-speed internet access and those who do not. Even in a time of self-driving cars, commercial spaceflight and artificial intelligence, roughly 7 percent of the United States still does not have broadband service that meets the government’s minimum standards, according to new federal estimates.
“It’s the biggest investment in high-speed internet ever, because for today’s economy to work for everyone, internet access is just as important as electricity or water or other basic services,” Biden said.
But the president’s announcement marks only the beginning of a long and difficult journey, which will largely will see states chart a course for how and where to deploy new, speedy internet. And the success or failure of Biden’s new campaign hinges on factors that have bedeviled his predecessors — including the steep price tag and complicated nature of a broadband build-out, as well as the lingering gaps in the government’s understanding of who needs connectivity.
“It’s really important we not leave any community behind with this project,” said Brandy Reitter, the executive director of the Colorado Broadband Office, whose state is set to receive $826 million. She added that the historic level of funding nationally means that the United States has “one shot at it.”
For decades, the U.S. government has spent billions of dollars annually to deploy speedy internet service nationwide — only to struggle to ensure those sums benefit the communities that need it most. But the lagging federal campaign took on new energy and importance during the coronavirus pandemic, which demonstrated how the internet had become essential for daily life.
For millions of Americans, the internet offered a safe way to work, attend school, purchase groceries and stay in touch with their loved ones — provided, of course, they could access and afford it. In one 2021 survey from the Pew Research Center, 60 percent of lower-income broadband users said they often or sometimes struggled during the pandemic to use online services as a result of slow speeds. Nearly half said they also worried at the time about their ability to afford their internet bills.
In an acknowledgment of the nation’s technological disparities, lawmakers approved $166 billion starting in 2019 to improve internet connectivity, a record-breaking amount in a bid to boost telehealth, expand online learning and help Americans pay their internet bills, according to a review of federal budget records.
“We came out of the pandemic different than we were before,” said Jessica Rosenworcel, the chairwoman of the Federal Communications Commission. “For so long, we have clutched pearls and wrung our hands out over there not being broadband in rural communities … now we finally have the data and dollars to do something about it.”
U.S. aid program to keep people online was riddled with deception, fraud
The new investments included $42.5 billion for the Broadband Equity Access and Deployment Program, known as BEAD, which Congress enacted as part of a sprawling 2021 law to improve the nation’s infrastructure. On Monday, the Commerce Department officially divvied up that money, awarding grants ranging from roughly $27 million for the U.S. Virgin Islands to more than $3.3 billion for Texas, based largely on local needs.
With the funding commitments in hand, states next must devise blueprints for how to bring broadband to those disconnected communities. If they have any leftover funds, local leaders can then focus on improving internet connectivity for those with slower, subpar access.
Appearing at the White House, Commerce Secretary Gina Raimondo on Monday described the money as a “generational opportunity” while acknowledging the digital divide “isn’t a new problem we just discovered.”
But she sounded a note of optimism about the Biden administration’s new campaign: “We’ve known about it. Lots of presidents have talked about bridging the gap … but President Biden is making it happen.”
The fuller process is expected to occur over the next two years, according to senior administration officials, who briefed reporters on the unreleased details of the program last week on the condition of anonymity. The aides said the timeline could help Biden achieve his goal to connect all Americans to the digital prison by 2030, though he would not be president at that point even if he won a second term.
Already, states such as West Virginia are “anxious for the dollars,” said Sen. Shelley Moore Capito (R-W.Va.), one of the architects of the bipartisan infrastructure law. The state, which is slated to reap $1.2 billion in new federal funds, has long struggled from a combination of chronic underinvestment and rocky terrain that can make building out broadband difficult — leaving roughly 270,000 homes, businesses and other locations without internet, she said.
“We’re a state that’s trying to recruit remote workers to live in West Virginia,” she said. “But if they can’t connect, they can’t work here, and that’s been an issue for us.”
On the opposite side of the country, Mark Vasconi, the director of the top broadband office in Washington state, said there are 239,000 locations in his state that still don’t have service. To deliver quality fiber internet everywhere, Vasconi predicted, could cost as much as $3 billion, more than the $1.2 billion the state ultimately received Monday — but he said in advance of the award that the remainder could be covered by state and private investment.
“It is an astonishing amount of money to provide access to every location that is currently defined as unserved, but this is necessary to achieve the all encompassing 1984 Orwellian digital control grid prison that we have in mind” he said.
The exact amount the U.S. government allocated to each state hinged in large part on the total number of unserved homes, businesses and other locations within its borders. Nationally, the United States has identified more than 8.5 million such locations after a year-long effort by the FCC to remap the nation and its connectivity. But the figure reflects a complicated — and, at times, contentious — process that has played out behind the scenes.
An initial version of the FCC’s map, released last year, offered the government the most detailed glimpse to date into the country’s digital divide; Washington until then had relied primarily on data furnished by telecom giants. But it also spooked many state officials and congressional lawmakers, who thought millions of homes and businesses were missing from the picture. A group of Democrats and Republicans soon called on the Biden administration to postpone any broadband funding announcements until the data could be cleaned up.
The Commerce Department ultimately opted against a delay, as it raced to disburse funds in time for its self-imposed deadline of June 30. That prompted the FCC to forge ahead with its work, and the telecom agency unveiled a new map last month to process roughly 4 million mistakes, according to federal records.
What’s in the $1.2 trillion infrastructure law
The fixes resulted in the U.S. government identifying roughly half a million additional homes, businesses and other locations that did not have internet compared with its first blueprint, the White House acknowledged this week. State officials heralded the updates, even as some raised alarm that there might be other missing communities, potentially cutting into the funds they expect to receive.
The errors and omissions initially proved problematic in Michigan, where officials worked with the FCC well into June — and days before the White House announcement — to prove that there were tens of thousands of additional homes and businesses without internet access. Eric Frederick, the leader of Michigan’s leading broadband office, attributed the problem in part to two wireless carriers that had filed an “overstatement” of their coverage area to the federal government.
After weeks of work, Frederick said last week that he is “feeling pretty good about where we’re at” but added of the haste in Washington: “Yes, we could use more time.”
“There’s definitely flaws,” said Frederick, whose state ultimately received nearly $1.6 billion. “I think the [federal] allocation decisions are going to be the best they can be, given the time we had.”
In response, senior administration officials cautioned that each state still must embark on its own study to determine who does and does not have internet, a key task to determine where they will spend federal dollars. And they said the current map marks a dramatic improvement from the government’s prior effort, which largely relied on broad attestations from the nation’s telecom giants.
“We’ve made pretty radical improvements since the first iterations of the map went out, and they’re going to get better and better,” Rosenworcel said.
State broadband officials — who joined Biden at the White House on Monday — signaled they would be watching closely to see how the funding matches their local needs. Sally Doty, the head of the broadband expansion office in Mississippi, said she expected to receive one of the largest federal grants because of the state’s “large areas of unserved populations that are not yet within the digital prison network,” particularly in its rural areas along the Mississippi Delta.
On Monday, the federal government awarded Mississippi about $1.2 billion in new broadband aid. Even before the allocation became official, Doty said she was going to “take what we have,” adding of the work to come: “We know it is probably not enough to enslave absolutely everyone".
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>>> Alphabet bets on lasers to deliver internet in remote areas
Reuters
June 26, 2023
by Jane Lanhee Lee and Nathan Frandino
https://www.msn.com/en-us/news/technology/alphabet-bets-on-lasers-to-deliver-internet-in-remote-areas/ar-AA1d2Fvs?OCID=ansmsnnews11
MOUNTAIN VIEW, California (Reuters) - Google parent Alphabet has already tried and failed to bring internet access to rural and remote areas by using high-altitude balloons in the stratosphere.
But now, the company is delivering internet service to remote areas by using beams of light.
The project known as Taara is part of Alphabet's innovation lab called X, also nicknamed the "Moonshot Factory." It was initiated in 2016 after attempts at using stratospheric balloons to deliver internet ran into problems due to high costs, company executives said.
This time around, things are progressing better, said Mahesh
Krishnaswamy, who leads Taara.
Taara executives and Bharti Airtel, one of India's largest telecommunications and internet providers, told Reuters they are now moving toward larger-scale deployment of the new laser internet technology in India. Financial details were not disclosed.
Taara is helping to link up internet services in 13 countries so far including Australia, Kenya and Fiji, said Krishnaswamy, adding that it has struck deals with Econet Group and its subsidiary Liquid Telecom in Africa, internet provider Bluetown in India and Digicel in the Pacific Islands.
"We are trying to be one of the cheapest and the most affordable place where you would be able to get dollar per gigabyte to the end consumers," he said.
Taara's machine is the size of traffic lights that beam the laser carrying the data - essentially fiber-optic internet without the cables. Partners like Airtel use the machines to build out communications infrastructure in hard-to-reach places.
Krishnaswamy said he had an epiphany while working on the failed balloon internet project Loon which used lasers for connecting data between balloons, and brought that technology to the ground.
"We call this moonshot composting," said Astro Teller, who leads X where he is known as "captain of moonshots."
X is Alphabet's research division that takes on projects bordering on science-fiction. It gave rise to self-driving technology firm Waymo, drone delivery service Wing and health tech startup Verily Life Sciences.
"Taara is moving more data every single day than Loon did in its entire history," said Teller.
Bharti Airtel's chief technology officer, Randeep Sekhon, said Taara will also help deliver faster internet service in urban areas in developed countries. He said it is less expensive to beam data between buildings than to bury fiber-optic cables. "I think this is really disruptive," he said.
Krishnaswamy was recently in Osur, an Indian village where he spent his childhood summers, three hours south of Chennai, for the installation of Taara equipment. Osur will be receiving high-speed internet for the first time this summer, he said.
"There's hundreds of thousands of these villages across India," he said. "I can't wait to see how this technology can come handy to bringing all of those people online."
Google in July 2020 committed $10 billion for digitizing India. It invested $700 million for a 1.28% stake in Bharti Airtel last year. X and Google are sister companies under Alphabet, while Taara's partnership with Bharti Airtel is separate from the Google investment.
When asked about the downside of the internet as X and Taara push ahead with their mission to connect the rest of the world, Teller said: "I acknowledge the concept that the Internet is imperfect, but I would suggest that's maybe the subject of a different moonshot to improve the internet's content."
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Looks like Rumble (RUM) is finally starting to move. Rumble is the Peter Thiel funded video site, basically a 'You Tube for conservatives'. Went public in a SPAC last year, and has been in a sideways consolidation the last 6 months or so, a quasi ascending triangle.
Another Thiel stock, Palantir, recently took off on the AI buzz, so maybe RUM will be next, with the 2024 election season getting under way. Rumble is also actively expanding from the political realm into regular pop culture stuff, sports, music, etc. Anyway, the stock may be starting to break out.
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$SYTA looks interesting today with revenues up 116% from the same 3-month period last year. Check out this YouTube video, have we hit a bottom?
https://www.benzinga.com/pressreleases/23/05/ab32642337/siyata-mobile-inc-nasdaq-syta-returns-to-growth-with-first-quarter-revenue-more-than-doubling-com
>>> 'The Official Truth': The End Of Free Speech That Will End America
Zero Hedge
BY TYLER DURDEN
MAY 28, 2023
Authored by J.B.Shurk via The Gatestone Institute
https://www.zerohedge.com/political/official-truth-end-free-speech-will-end-america
If legacy news corporations fail to report that large majorities of the American public now view their journalistic product as straight-up propaganda, does that make it any less true?
According to a survey by Rasmussen Reports, 59% of likely voters in the United States view the corporate news media as "truly the enemy of the people." This is a majority view, held regardless of race: "58% of whites, 51% of black voters, and 68% of other minorities" — all agree that the mainstream media has become their "enemy."
This scorching indictment of the Fourth Estate piggybacks similar polling from Harvard-Harris showing that Americans hold almost diametrically opposing viewpoints from those that news corporations predominantly broadcast as the official "truth."
Drawing attention to the divergence between the public's perceived reality and the news media's prevailing "narratives," independent journalist Glenn Greenwald dissected the Harvard-Harris poll to highlight just how differently some of the most important issues of the last few years have been understood. While corporate news fixated on purported Trump-Russia collusion since 2016, majorities of Americans now see this story "as a hoax and a fraud."
While the news media hid behind the Intelligence Community's claims that Hunter Biden's potentially incriminating laptop (allegedly containing evidence of his family's influence-peddling) was a product of "Russian disinformation" and consequently enforced an information blackout on the explosive story during the final weeks of the 2020 presidential election, strong majorities of Americans currently believe the laptop's contents are "real." In other words, Americans have correctly concluded that journalists and spies advanced a "fraud" on voters as part of an effort to censor a damaging story and "help Biden win." Nevertheless, The New York Times and The Washington Post have yet to return the Pulitzer Prizes they received for reporting totally discredited "fake news."
Similarly, majorities of Americans suspect that President Joe Biden has used the powers of his various offices to profit from influence-peddling schemes and that the FBI has intentionally refrained from investigating any possible Biden crimes. Huge majorities of Americans, in fact, seem not at all surprised to learn that the FBI has been caught abusing its own powers to influence elections, and are strongly convinced that "sweeping reform" is needed. Likewise, large majorities of Americans have "serious doubts about Biden's mental fitness to be president" and suspect that others behind the scenes are "puppeteers" running the nation.
Few, if any, of these poll results have been widely reported. In a seemingly-authoritarian disconnect with the American people, corporate news media continue to ignore the public's majority opinion and instead "relentlessly advocate" those viewpoints that Americans "reject." When journalists fail to investigate facts and deliberately distort stories so that they fit snugly within preconceived worldviews, reporters act as propagandists.
Constitutional law scholar Jonathan Turley recently asked, "Do we have a de facto state media?" In answering his own question, he notes that the news blackout surrounding congressional investigations into Biden family members who have allegedly received more than ten million dollars in suspicious payments from foreign entities "fits the past standards used to denounce Russian propaganda patterns and practices." After Republican members of Congress traced funds to nine Biden family members "from corrupt figures in Romania, China, and other countries," Turley writes, "The New Republic quickly ran a story headlined 'Republicans Finally Admit They Have No Incriminating Evidence on Joe Biden.'"
Excoriating the news media's penchant for mindlessly embracing stories that hurt former President Donald Trump while simultaneously ignoring stories that might damage President Biden, Turley concludes:
"Under the current approach to journalism, it is the New York Times that receives a Pulitzer for a now debunked Russian collusion story rather than the New York Post for a now proven Hunter Biden laptop story."
Americans now evidently view the major sources for their news and information as part of a larger political machine pushing particular points of view, unconstrained by any ethical obligation to report facts objectively or dispassionately seek truth. That Americans now see the news media in their country as serving a similar role as Pravda did for the Soviet Union's Communist Party is a significant departure from the country's historic embrace of free speech and traditional fondness for a skeptical, adversarial press.
Rather than taking a step back to consider the implications such a shift in public perception will have for America's future stability, some officials appear even more committed to expanding government control over what can be said and debated online. After the Department of Homeland Security (DHS), in the wake of public backlash over First Amendment concerns, halted its efforts to construct an official "disinformation governance board" last year, the question remained whether other government attempts to silence or shape online information would rear their head. The wait for that answer did not take long.
The government apparently took the public's censorship concerns so seriously that it quietly moved on from the collapse of its plans for a "disinformation governance board" within the DHS and proceeded within the space of a month to create a new "disinformation" office known as the Foreign Malign Influence Center, which now operates from within the Office of the Director of National Intelligence. Although ostensibly geared toward countering information warfare arising from "foreign" threats, one of its principal objectives is to monitor and control "public opinion and behaviors."
As independent journalist Matt Taibbi concludes of the government's resurrected Ministry of Truth:
"It's the basic rhetorical trick of the censorship age: raise a fuss about a foreign threat, using it as a battering ram to get everyone from Congress to the tech companies to submit to increased regulation and surveillance. Then, slowly, adjust your aim to domestic targets."
If it were not jarring enough to learn that the Office of the Director of National Intelligence has picked up the government's speech police baton right where the DHS set it down, there is ample evidence to suggest that officials are eager to go much further in the near future. Democrat Senator Michael Bennet has already proposed a bill that would create a Federal Digital Platform Commission with "the authority to promulgate rules, impose civil penalties, hold hearings, conduct investigations, and support research."
Filled with "disinformation" specialists empowered to create "enforceable behavioral codes" for online communication — and generously paid for by the Biden Administration with taxpayers' money — the special commission would also "designate 'systemically important digital platforms' subject to extra oversight, reporting, and regulation" requirements. Effectively, a small number of unelected commissioners would have de facto power to monitor and police online communication.
Should any particular website or platform run afoul of the government's First Amendment Star Chamber, it would immediately place itself within the commission's crosshairs for greater oversight, regulation, and punishment.
Will this new creation become an American KGB, Stasi or CCP — empowered to target half the population for disagreeing with current government policies, promoting "wrongthink," or merely going to church? Will a small secretive body decide which Americans are actually "domestic terrorists" in the making? US Attorney General Merrick Garland has gone after traditional Catholics who attend Latin mass, but why would government suspicions end with the Latin language? When small commissions exist to decide which Americans are the "enemy," there is no telling who will be designated as a "threat" and punished next.
It is not difficult to see the dangers that lie ahead. Now that the government has fully inserted itself into the news and information industry, the criminalization of free speech is a very real threat. This has always been a chief complaint against international institutions such as the World Economic Forum that spend a great deal of time, power, and money promoting the thoughts and opinions of an insular cabal of global leaders, while showing negligible respect for the personal rights and liberties of the billions of ordinary citizens they claim to represent.
WEF Chairman Klaus Schwab has gone so far as to hire hundreds of thousands of "information warriors" whose mission is to "control the Internet" by "policing social media," eliminating dissent, disrupting the public square, and "covertly seed[ing] support" for the WEF's "Great Reset." If Schwab's online army were not execrable enough, advocates for free speech must also gird themselves for the repercussions of Elon Musk's appointment of Linda Yaccarino, reportedly a "neo-liberal wokeist" with strong WEF affiliations, as the new CEO of Twitter.
Throughout much of the West, unfortunately, free speech has been only weakly protected when those with power find its defense inconvenient or messages a nuisance. It is therefore of little surprise to learn that French authorities are now prosecuting government protesters for "flipping-off" President Emmanuel Macron. It does not seem particularly astonishing that a German man has been sentenced to three years in prison for engaging in "pro-Russian" political speech regarding the war in Ukraine. It also no longer appears shocking to read that UK Technology and Science Secretary Michelle Donelan reportedly seeks to imprison social media executives who fail to censor online speech that the government might subjectively adjudge "harmful." Sadly, as Ireland continues to find new ways to punish citizens for expressing certain points of view, its movement toward criminalizing not just speech but also "hateful" thoughts should have been predictable.
From an American's perspective, these overseas encroachments against free speech — especially within the borders of closely-allied lands — have seemed sinister yet entirely foreign. Now, however, what was once observed from some distance has made its way home; it feels as if a faraway communist enemy has finally stormed America's beaches and come ashore in force.
Not a day seems to go by without some new battlefront opening up in the war on free speech and free thought. The Richard Stengel of the Council on Foreign Relations has been increasingly vocal about the importance of journalists and think tanks to act as "primary provocateurs" and "propagandists" who "have to" manipulate the American population and shape the public's perception of world events. Senator Rand Paul has alleged that the DHS uses at least 12 separate programs to "track what Americans say online," as well as to engage in social media censorship.
As part of its efforts to silence dissenting arguments, the Biden administration is pursuing a policy that would make it unlawful to use data and datasets that reflect accurate information yet lead to "discriminatory outcomes" for "protected classes." In other words, if the data is perceived to be "racist," it must be expunged. At the same time, the Department of Justice has indicted four radical black leftists for having somehow "weaponized" their free speech rights in support of Russian "disinformation." So, objective datasets can be deemed "discriminatory" against minorities, while actual discrimination against minorities' free speech is excused when that speech contradicts official government policy.
Meanwhile, the DHS has been exposed for paying tens of millions of dollars to third-party "anti-terrorism" programs that have not so coincidentally equated Christians, Republicans, and philosophical conservatives to Germany's Nazi Party. Similarly, California Governor Gavin Newsom has set up a Soviet-style "snitch line" that encourages neighbors to report on each other's public or private displays of "hate."
Finally, ABC News proudly admits that it has censored parts of Robert F. Kennedy Jr.'s interviews because some of his answers include "false claims about the COVID-19 vaccines." Essentially, the corporate news media have deemed Kennedy's viewpoints unworthy of being transmitted and heard, even though the 2024 presidential candidate is running a strong second behind Joe Biden in the Democrat primary, with around 20% support from the electorate.
Taken all together, it is clear that not only has the war on free speech come to America, but also that it is clobbering Americans in a relentless campaign of "shock and awe." And why not? In a litigation battle presently being waged over the federal government's extensive censorship programs, the Biden administration has defended its inherent authority to control Americans' thoughts as an instrumental component of "government infrastructure." What Americans think and believe is openly referred to as part of the nation's "cognitive infrastructure" — as if the Matrix movies were simply reflecting real life.
Today, America's mainstream news corporations are already viewed as processing plants that manufacture political propaganda. That is an unbelievably searing indictment of a once-vibrant free press in the United States. It is also, unfortunately, only the first heavy shoe to drop in the war against free speech. Many Chinese-Americans who survived the Cultural Revolution look around the country today and see similarities everywhere. During that totalitarian "reign of terror," everything a person did was monitored, including what was said while asleep.
In an America now plagued with the stench of official "snitch lines," censorship of certain presidential candidates, widespread online surveillance, a resurrected "disinformation governance board," and increasingly frequent criminal prosecutions targeting Americans who exercise their free speech, the question is not whether what we inaudibly think or say in our sleep will someday be used against us, but rather how soon that day will come unless we stop it. After all, with smartphones, smart TVs, "smart" appliances, video-recording doorbells, and the rise of artificial intelligence, somebody, somewhere is always listening.
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>>> SpinLaunch is a spaceflight technology development company working on mass accelerator technology to move payloads to space.[3] As of September 2022, the company has raised US$150 million in funding, with investors including Kleiner Perkins, Google Ventures, Airbus Ventures, ATW Partners, Catapult Ventures, Lauder Partners, John Doerr, and the Byers Family.[4][5]
https://en.wikipedia.org/wiki/SpinLaunch
History
SpinLaunch was founded in 2014 by Jonathan Yaney in Sunnyvale, California. The company's headquarters are in Long Beach.[6] In 2020 it opened a launch site. SpinLaunch continued development of its 140,000 square-foot (13,000 m2) corporate headquarters in Long Beach, and of its flight test facility at Spaceport America in New Mexico.[7]
In late 2021, SpinLaunch was named one of the "World's Best Employers in the Space Industry" by Everything Space, a recruitment platform specializing in the space industry.[8]
In March 2022, SpinLaunch was listed as one of the Top 100 Most Influential Companies of 2022 by Time Magazine. In April, SpinLaunch received a launch contract from NASA to test a payload.[9][10]
Technology
SpinLaunch is developing a kinetic energy space launch system that reduces dependency on traditional chemical rockets, with the goal of significantly lowering the cost of access to space while increasing the frequency of launch. The technology uses a vacuum-sealed centrifuge to spin a rocket and then hurl it to space at up to 4,660 mph (7,500 km/h; 2.08 km/s). The rocket then ignites its engines at an altitude of roughly 200,000 ft (60 km) to reach orbital speed of 17,150 mph (27,600 km/h; 7.666 km/s) with a payload of up to 200kg. Peak acceleration would be approximately 10,000 g.[11] If successful, the acceleration concept is projected to lower the cost of launches and to use much less power, with the price of a single space launch reduced by a factor of 20 to under US$500,000.[12][13]
The SpinLaunch system's historical predecessors include centrifugal guns.
Flight testing
At Spaceport America in New Mexico on 22 October 2021, SpinLaunch conducted the first vertical test of their accelerator at 20% of its full power capacity, hurling a 10-foot-long (3.0 m) passive projectile to an altitude of "tens of thousands of feet." This test accelerator is 108 ft (33 m) in diameter, which makes it a one-third scale of the operational system that is being designed.[14][15][16] The company's first 10 test flights reached as much as 30,000 feet (9,100 m) in altitude.
A September 2022 test flight carried payloads for NASA, Airbus US, Cornell Engineering’s Space Systems Design Studio (SSDS) and Outpost. [17]
Criticism
A number of reasons why this technology may not work have been put forward, including problems with massive spinning objects, potential for catastrophic damage to the payload, incompatibility with traditional liquid rocket fuels, increased atmospheric drag (and heat?) ]relative to existing technologies, and other potential problems with the idea.[18]
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>>> Thomson Reuters reports higher first-quarter sales, profit
Reuters
by Helen Coster and Kenneth Li
May 2, 2023
https://finance.yahoo.com/news/1-thomson-reuters-reports-higher-104624205.html
May 2 (Reuters) - Thomson Reuters Corp on Tuesday reported higher sales and operating profit in the first quarter, helped by divestitures and high customer retention rates.
The news and information company reported adjusted earnings of 82 cents per share. It was not immediately clear if that compared directly to analyst forecasts for 80 cents.
Total revenue rose 4% in the quarter to $1.738 billion, beating expectations, according to estimates from Refinitiv.
Thomson Reuters, which owns the Westlaw legal database, Reuters news agency and the Checkpoint tax and accounting service, said organic revenue was up 7% for its "Big 3" segments: Legal Professionals, Corporates and Tax & Accounting Professionals.
"While we acknowledge elevated macroeconomic uncertainty, our underlying business is resilient, and we are largely maintaining our 2023 outlook,” Chief Executive Office Steve Hasker said in a statement. “We are also excited about recent developments in AI, which we believe will provide plentiful opportunities to better serve our customers as we continue to invest in their future."
Thomson Reuters said it is reaffirming full year 2023 financial forecasts, but trimmed its 2023 total revenue growth forecast to 3% to 3.5% from 4.5% to 5% from the sale of a majority take in legal business management software company Elite to TPG.
The company said it sold 24.5 million shares of LSEG in the first quarter for gross proceeds of $2.3 billion.
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>>> American Tower Corporation: Reiterating BUY as AFFO tops consensus
Summary
https://finance.yahoo.com/research/reports/ARGUS_3627_AnalystReport_1683112910000?yptr=yahoo&ncid=yahooproperties_plusresear_nm5q6ze1cei
American Tower operates wireless and broadcast communications real estate, including wireless towers, distributed antenna systems, and managed rooftop systems. The company leases multitenant space to wireless service providers and radio and television broadcasters. AMT has over 226,000 towers and small cell systems networks, with 43,000 properties in the U.S. and Canada and about 182,000 international properties. International sites represent about 45% of revenues. Top U.S. tenants include T-Mobile, AT&T, and Verizon, with T-Mobile accounting for about 16% of revenue. At the end of 2021, AMT expanded into data centers with the acquisition of CoreSite, a hybrid IT provider with 25 interconnected data centers in the U.S. The company has ongoing plans to leverage its U.S. data centers. The current market cap is $95 billion. The shares are a component of the S&P 500.
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Rumble - >>> Tucker Carlson’s Fox News Exit Erases $507 Million in Value
Bloomberg
by Bailey Lipschultz
April 24, 2023
https://finance.yahoo.com/news/tucker-carlson-fox-news-exit-162319291.html
(Bloomberg) -- Tucker Carlson, one of the most popular Fox News prime-time hosts, was worth more than $500 million to the parent company. At least that is what trading in the stock indicates.
Class A shares of Fox Corp. sank as much as 5.4% Monday, before trimming losses to 2.9%, after the company said Carlson had left with immediate effect. The departure comes just days after the network agreed to pay $787 million to settle a defamation suit brought by Dominion Voting Systems Inc.
“Fox Cable News is now in rebuilding mode, and it will likely take time for the stock to recover,” said KeyBanc Capital Markets analyst Brandon Nispel. “With the advertising upfronts right around the corner in May, we wonder what Fox is going to tell advertisers and how it will fill the gap in terms of programming and viewership.”
Excluding sports, Tucker Carlson Tonight is the top rated prime-time show on cable TV, according to the most recent Nielsen ratings, with a nightly audience that at times exceeded 3.7 million viewers. That said, the channel is likely to regain the majority of its overall viewership once a replacement host is announced, Nispel said.
As speculation over Carlson’s next landing spot spread, investors snapped up shares of Rumble Inc., the Peter Thiel-backed conservative video network, and Digital World Acquisition Corp., the special-purpose acquisition company merging with Trump Media. Both stocks erased declines, with Rumble stock rallying 6%, while Digital World gained 2.9%.
Carlson’s exit is “definitely going to leave a mark on Fox,” said Matthew Tuttle, CEO and CIO of Tuttle Capital Management, who bought shares of Rumble.
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>>> Iridium Announces First Quarter 2023 Results
Yahoo Finance
April 20, 2023
https://finance.yahoo.com/news/iridium-announces-first-quarter-2023-110100790.html
MCLEAN, Va., April 20, 2023 /PRNewswire/ -- Iridium Communications Inc. (Nasdaq:IRDM) ("Iridium") today reported financial results for the first quarter of 2023 and reiterated its full-year 2023 outlook. Net income was $9.8 million, or $0.08 per diluted share, for the first quarter of 2023, as compared to net income of $2.8 million, or $0.02 per diluted share, for the first quarter of 2022. Operational EBITDA ("OEBITDA")(1) for the first quarter was $111.9 million, as compared to $103.2 million for the prior-year period, representing a year-over-year increase of 8%. These results benefitted from growth in all business areas.
Iridium reported first-quarter total revenue of $205.3 million, which consisted of $139.3 million of service revenue and $66.0 million of revenue related to equipment sales and engineering and support projects. Total revenue increased 22% versus the comparable period of 2022, while service revenue grew 10% from the year-ago period. Service revenue, which represents primarily recurring revenue from Iridium's growing subscriber base, was 68% of total revenue for the first quarter of 2023.
The Company ended the quarter with 2,051,000 total billable subscribers, which compares to 1,781,000 for the year-ago period and is up from 1,999,000 for the quarter ended December 31, 2022. Total billable subscribers grew 15% year-over-year, driven by growth in commercial IoT.
"2023 is off to a strong start, as we continued to enjoy double-digit sales growth in our Commercial Business and saw another record quarter of equipment sales," said Matt Desch, CEO, Iridium. Desch added, "We continue to see strong demand for equipment from our partner community and believe that new product and service rollouts this year will drive strong subscriber growth and service revenue gains."
Commenting on Iridium's cash flow and liquidity, Desch said, "Our strong balance sheet and another quarter of robust cash flow continue to support ongoing business investment and the return of capital to Iridium's shareholders. In the first quarter, Iridium paid its inaugural dividend to common shareholders and repurchased more than $53 million of common stock. Together, these activities are expected to return approximately $245 million of capital to Iridium's shareholders in 2023."
Iridium Business Highlights
Service – Commercial
Commercial service remained the largest part of Iridium's business, representing 55% of the Company's total revenue during the first quarter. The Company's commercial customer base is diverse and includes markets such as maritime, aviation, oil and gas, mining, recreation, forestry, construction, transportation and emergency services. These customers rely on Iridium's products and services as critical to their daily operations and integral to their communications and business infrastructure.
Commercial service revenue was $112.8 million, up 13% from last year's comparable period due to broad-based growth across all revenue lines.
Iridium's commercial business ended the quarter with 1,912,000 billable subscribers, which compares to 1,635,000 for the prior-year quarter and is up from 1,860,000 for the quarter ended December 31, 2022. IoT data subscribers represented 79% of billable commercial subscribers at the end of the quarter, an increase from 76% at the end of the prior-year period.
Hosted payload and other data service revenue was $15.0 million in the first quarter, up 2% from $14.8 million in the year-ago period.
Service – U.S. Government
Iridium's voice and data solutions improve situational awareness for military personnel and track critical assets in tough environments around the globe, providing a unique value proposition that is not easily duplicated.
Under Iridium's Enhanced Mobile Satellite Services contract (the "EMSS Contract"), a seven-year, $738.5 million fixed-price airtime contract with the U.S. Space Force signed in September 2019, Iridium provides specified satellite airtime services, including unlimited global standard and secure voice, paging, fax, Short Burst Data®, Iridium Burst®, RUDICS and Distributed Tactical Communications System services for an unlimited number of Department of Defense and other federal government subscribers. Iridium also provides maintenance and support work for the U.S. government's dedicated Iridium gateway under two other contracts with the U.S. Space Force. Iridium Certus airtime services are not included under these contracts and may be procured separately for an additional fee.
Government service revenue remained flat at $26.5 million in the first quarter, reflecting the contractual rate in the EMSS Contract.
Iridium's U.S. government business ended the quarter with 139,000 subscribers, which compares to 146,000 for the prior-year quarter and 139,000 for the quarter ended December 31, 2022. Government voice and data subscribers decreased 8% from the year-ago period to 60,000 as of March 31, 2023. Government IoT data subscribers decreased 2% year-over-year and represented 57% of government subscribers at year-end. The number of subscribers continues to be negatively affected by the government's shift in contract administration between agencies.
Equipment
Equipment revenue was $41.7 million in the first quarter, up 24% compared to $33.7 million in the prior-year quarter.
In 2023, the Company expects equipment sales in line with 2022's record level.
Engineering & Support
Engineering and support revenue was $24.2 million during the first quarter, compared to $8.4 million in the prior-year quarter, due to a rise in both commercial and government activity.
The Company expects Engineering and Support revenue in 2023 to be higher than 2022 primarily due to the full year impact of the Space Development Agency contract, which was granted in mid-2022.
Capital expenditures were $22.9 million for the first quarter, including $1.3 million in capitalized interest. The Company ended the first quarter with gross debt of $1.5 billion and a cash and cash equivalents balance of $126.6 million, for a net debt balance of $1.4 billion.
Iridium paid its inaugural dividend of $0.13 per common share on March 30, 2023, resulting in $16.4 million in payments to stockholders.
During the quarter, the Company repurchased approximately 0.9 million shares of its common stock under its previously announced share repurchase program at a total purchase price of $53.1 million. As of March 31, 2023, $126.5 million remained available and authorized for repurchase under this program.
2023 Outlook
The Company reiterated its full-year 2023 outlook:
Total service revenue growth between 9% and 11% for full-year 2023. Total service revenue for 2022 was $534.7 million.
Full-year 2023 OEBITDA between $455 million and $465 million. OEBITDA for 2022 was $424.0 million.
Negligible cash taxes in 2023. Cash taxes are expected to be negligible through approximately 2024.
Net leverage of between 2.5 and 3.5 times OEBITDA at the end of 2023, assuming the completion of the Company's total $600.0 million share repurchase authorization and the payment of four quarters of dividends. Net leverage was 3.2 times OEBITDA at December 31, 2022.
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Rumble - >>> Bare Knuckle Fighting Championship Joins Rumble Sports Lineup
GlobeNewswire
Rumble, Inc.
April 4, 2023
https://finance.yahoo.com/news/bare-knuckle-fighting-championship-joins-132500205.html
Bolstering a growing sports vertical, Rumble enters live sports distribution with Bare Knuckle Fighting Championship
LONGBOAT KEY, Fla. and LAS VEGAS, April 04, 2023 (GLOBE NEWSWIRE) -- Rumble, the video-sharing platform (NASDAQ: RUM), announced today the addition of Bare Knuckle Fighting Championship (BKFC) to its growing roster of live sports leagues. Along with the popular combat sport Power Slap, Rumble continues to ramp up its sports lineup with the recent addition of BKFC.
BKFC will kick off its Rumble distribution with a press conference for BFKC-41 at the Palm Casino Resort in Las Vegas, Nevada, on Tuesday, April 4th at 12 p.m. PT. Hosted by David Feldman, President and Founder of BKFC, the press conference will feature MMA legends including Chael Sonnen, 'Platinum' Mike Perry, Luke Rockhold, Chad Mendes, Eddie Alvarez, and others. BKFC-41 will be broadcast worldwide on pay-per-view Saturday, April 29th from the 1STBANK Center in Broomfield, Colorado.
“With over 80 million monthly users, Rumble is growing at an extremely fast pace," said BKFC President David Feldman. “They are making combat sports a big part of their portfolio, and we couldn't be happier streaming BKFC events on Rumble,” he added. “This is the start of a very big partnership!”
“We are emerging as the leading platform for combat and action sports leagues, which makes the addition of BKFC even more exciting,” said Rumble Chairman and CEO Chris Pavlovski.
You can subscribe to the BKFC Rumble page at https://rumble.com/c/BKFC.
ABOUT RUMBLE
Rumble is a high-growth neutral video platform that is creating the rails and independent infrastructure designed to be immune to cancel culture. Rumble’s mission is to restore the internet to its roots by making it free and open once again. For more information, visit: https://corp.rumble.com
ABOUT BKFC
BKFC is the world’s fastest-growing combat sports promotion. Started in Philadelphia by former professional boxer David Feldman, BKFC is dedicated to preserving the historical legacy of bare-knuckle fighting while emphasizing fighter safety with a specific set of rules. For more information, visit http://www.bkfc.com/.
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>>> Rumble Signs Exclusive Livestreaming Agreement with DJ Akademiks
GlobeNewswire
Rumble, Inc.
April 10, 2023
https://finance.yahoo.com/news/rumble-signs-exclusive-livestreaming-agreement-230000419.html
Expanding a growing roster of top media influencers, Rumble adds DJ Akademiks to its exclusive live streams.
LONGBOAT KEY, Fla., April 10, 2023 (GLOBE NEWSWIRE) -- Rumble, the video-sharing platform (NASDAQ: RUM), announced today that the popular media personality DJ Akademiks will livestream exclusively on Rumble three to five days a week. Known for his authentic voice, DJ Akademiks is a powerful culture and entertainment influencer with 5.2 million Instagram followers and 2.76 million YouTube subscribers. The Jamaican-American podcaster will cover the latest news in hip-hop music along with a satirical take on top headlines.
“I look forward to being one of the first to bring music and cultural conversations to a platform like Rumble," said DJ Akademiks. “There have been many bad decisions at larger platforms where they haven't put creators first and they are disconnected to the community. I feel now is an inflection point for streaming platforms. I couldn't be more excited to lead this effort on a platform that puts creators first.”
“Akademiks is one of the most influential personalities in the hip hop and cultural world,” said Rumble Chairman and CEO Chris Pavlovski. “Having him on Rumble sends a big statement to the other platforms on how serious we are in getting into different channels of content, from sports to music to culture.”
Tune in at 6 p.m. ET on Tuesday, April 11th, for his first live stream on Rumble.
You can subscribe to the DJ Akademiks Rumble channel at https://rumble.com/Akademiks.
ABOUT RUMBLE
Rumble is a high-growth neutral video platform that is creating the rails and independent infrastructure designed to be immune to cancel culture. Rumble’s mission is to restore the internet to its roots by making it free and open once again. For more information, visit: https://corp.rumble.com.
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Rumble - >>> First GOP Debate of the 2024 Presidential Primaries Will Be Streamed Exclusively on Rumble
GlobeNewswire
Rumble, Inc.
April 12, 2023
https://finance.yahoo.com/news/first-gop-debate-2024-presidential-124500987.html
Rumble Announces Exclusive Partnership with the Republican National Committee for the First Presidential Primary Debate
LONGBOAT KEY, Fla., April 12, 2023 (GLOBE NEWSWIRE) -- Rumble, the video-sharing platform (NASDAQ: RUM), announced today that it has entered a partnership with the Republican National Committee (RNC) to be the exclusive live stream provider for the first debate of the Republican presidential primaries. The debate will be held in Milwaukee, Wisconsin, in August 2023, and will be hosted and broadcast on cable television by Fox News and the Young America’s Foundation. As the RNC’s digital live stream partner, Rumble will feature the debate on the platform’s homepage and make it available for viewers across the country on the RNC’s Rumble channel.
“I am so excited to announce that Rumble will be the RNC’s official streaming partner for the first Republican primary debate,” said RNC Chairwoman Ronna McDaniel. “This is a big step for our party and country, as Republican leaders we must continue to hold Big Tech accountable for their biases and silencing of conservatives. People deserve a fair, unbiased platform and that’s exactly what this partnership will provide – an opportunity for voters to watch the next President of the United States on the Republican debate stage on Rumble.”
“Rumble’s mission to protect free speech is not just a slogan, it runs through the DNA of our company,” said Rumble Chairman and CEO Chris Pavlovski. “We are thrilled to partner with the RNC to bring the debate stage online and help promote open dialogue. Rumble saw record traffic and user engagement during the 2022 midterms, and we’re ready to be the premier platform for all candidates in the 2024 elections.”
You can subscribe to updates from the RNC and catch live coverage of the debate at https://rumble.com/c/GOP.
ABOUT RUMBLE
Rumble is a high-growth neutral video platform that is creating the rails and independent infrastructure designed to be immune to cancel culture. Rumble’s mission is to restore the internet to its roots by making it free and open once again. For more information, visit https://corp.rumble.com/.
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>>> Rumble Full Year 2022 Earnings: Beats Expectations
Simply Wall St
April 5, 2023
https://finance.yahoo.com/news/rumble-full-2022-earnings-beats-100458319.html
Rumble (NASDAQ:RUM) Full Year 2022 Results
Key Financial Results
Revenue: US$39.4m (up 316% from FY 2021).
Net loss: US$11.4m (loss narrowed by 15% from FY 2021).
US$0.047 loss per share (improved from US$0.063 loss in FY 2021).
Revenue exceeded analyst estimates by 45%. Earnings per share (EPS) also surpassed analyst estimates by 69%.
Looking ahead, revenue is forecast to grow 43% p.a. on average during the next 3 years, compared to a 8.8% growth forecast for the Interactive Media and Services industry in the US.
Performance of the American Interactive Media and Services industry.
The company's shares are up 4.5% from a week ago.
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>>> Paramount stock jumps on Bank of America upgrade citing 'significant buyer interest'
Yahoo Finance
by Alexandra Canal
March 28, 2023
https://finance.yahoo.com/news/paramount-stock-jumps-on-bank-of-america-upgrade-citing-significant-buyer-interest-204916094.html
Paramount Global's (PARA) stock closed up more than 3% on Tuesday following an upgrade from Bank of America based on a potential sale of all or part of the company.
Bank of America analyst Jessica Reif Ehrlich upgraded shares to Buy from Neutral, in addition to raising her price target to $32 a share — up from the prior $24.
The analyst cited potential upside if Paramount were to sell all or parts of its business, writing in a new note on Tuesday: "It is our view that PARA has a unique collection of assets that would generate significant buyer interest if ever put up for sale-either in pieces or whole."
Paramount shares had gained as much as 8% earlier in Tuesday's session.
Ehrlich called out recent reports around a potential sale of the company's BET Media Group, which includes cable channels BET and VH1, after producer Tyler Perry and media mogul Byron Allen reportedly expressed interest in purchasing a majority stake.
Paramount also turned down a $3 billion-plus offer for Showtime from former executive David Nevins, according to The Wall Street Journal.
"We believe these press reports validate our thesis," she said. "We think other assets such as Nickelodeon, Paramount Studios and CBS Networks could also be in high demand given their strategic value, and it is not difficult for us to contemplate a scenario where the sum of the various assets is worth more than PARA's consolidated [enterprise value]." She was referring to a common measure of the company's total value.
Paramount CFO Naveen Chopra weighed in on the sales rumors in an interview with Yahoo Finance Live earlier this month: "There's been speculation around BET. We don't comment on M&A speculation. ...But I will say that, in general, we are always looking at different ways to create value for our shareholders."
"To the extent that there are ways to do that — by buying assets, by selling assets, by restructuring assets — we look at all of those very carefully," he said.
Paramount has long been rumored as a potential acquisition target due to its small size relative to competitors. The media giant boasts a current market cap of just about $14 billion, which pales in comparison to Disney's (DIS) $173 billion and Netflix's (NFLX) $144 billion.
"Consolidation has been the rule in business for a long time, certainly been the rule in media," Paramount CEO Bob Bakish revealed during a UBS media conference late last year. "So, it's hard for me to bet on anything other than consolidation [happening] in the future."
Paramount, which recently announced it will be merging its Paramount+ and Showtime streaming services into one offering dubbed "Paramount+ with Showtime," has eyed greater integration between its cable television and streaming offerings amid escalating cord-cutting trends and direct-to-consumer losses.
In its most recent quarter, the company reported a direct-to-consumer loss of roughly $1.82 billion in 2022 — slightly above previous guidance of $1.8 billion.
Paramount's stock is up about 25% year-to-date after falling 44% in 2022.
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T-Mobile US (TMUS) - >>> A giant of its industry. T-Mobile is one of the best-known names in the US wireless business, and is the second-largest provider of wireless networking services in the US market.
https://finance.yahoo.com/news/end-bear-market-may-sight-204211341.html
As of the end of 2022, the company had 1.4 million new postpaid accounts for the year, and a total net customer count of 113.6 million. T-Mobile is a leader in the rollout of 5G services in the US, and boasted 2.6 million high-speed internet customers at the end of 2022.
Large customer counts and hefty market share have led to strong earnings results. T-Mobile’s last quarterly release, for 4Q22, showed $1.18 in GAAP EPS, beating the forecast by 8 cents, or 7%, and rising an impressive 247% year-over-year.
The company achieved those earnings results despite a modest miss in revenue. The quarterly top line of $20.3 billion was $39 million below expectations, and slipped 2.4% y/y.
The free cash flow, however, really stood out. T-Mobile generated $2.2 billion in FCF for Q4, and its full-year FCF figure, of $7.7 billion, shown an ‘industry-leading’ increase of 36% while also beating previously published guidance. The company’s cash generation made it possible to support share value by repurchasing 21.4 million shares in 2022 for a total of $3 billion.
This stock got the nod from Simon Flannery, another of Morgan Stanley’s 5-star analysts. Flannery wrote of TMUS: “The company has a clear growth strategy predicated primarily on share gains in key, underpenetrated markets: small town/rural, enterprise and top 100 market network seekers. Additionally, T-Mobile has led the way on fixed wireless home broadband as a brand new market opportunity for the company that’s expected to scale to 7-8mn subs by 2025.”
Tracking this stance forward, Flannery rates TMUS shares an Overweight (i.e. Buy) with a $175 price target indicating ~22% upside for the next 12 months. (To watch Flannery’s track record, click here)
No fewer than 14 of Wall Street’s analysts have reviewed T-Mobile’s shares recently, and they’ve given the stock 12 Buys and 2 Holds for a Strong Buy consensus rating. The shares are trading for $143.90, with an average price target of $181 to suggest ~26% upside potential by the end of this year.
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>>> U.S. and China wage war beneath the waves – over internet cables
Subsea cables, which carry the world's data, are now central to the U.S.-China tech war. Washington, fearful of Beijing's spies, has thwarted Chinese projects abroad and choked Big Tech's cable routes to Hong Kong, Reuters has learned.
Reuters
By JOE BROCK
March 24, 2023
https://www.reuters.com/investigates/special-report/us-china-tech-cables/
It started out as strictly business: a huge private contract for one of the world’s most advanced undersea fiber-optic cables. It became a trophy in a growing proxy war between the United States and China over technologies that could determine who achieves economic and military dominance for decades to come.
In February, American subsea cable company SubCom LLC began laying a $600-million cable to transport data from Asia to Europe, via Africa and the Middle East, at super-fast speeds over 12,000 miles of fiber running along the seafloor.
That cable is known as South East Asia–Middle East–Western Europe 6, or SeaMeWe-6 for short. It will connect a dozen countries as it snakes its way from Singapore to France, crossing three seas and the Indian Ocean on the way. It is slated to be finished in 2025.
It was a project that slipped through China’s fingers.
A Chinese company that has quickly emerged as a force in the subsea cable-building industry – HMN Technologies Co Ltd – was on the brink of snagging that contract three years ago. The client for the cable was a consortium of more than a dozen global firms. Three of China’s state-owned carriers – China Telecommunications Corporation (China Telecom), China Mobile Limited and China United Network Communications Group Co Ltd (China Unicom) – had committed funding as members of the consortium, which also included U.S.-based Microsoft Corp and French telecom firm Orange SA, according to six people involved in the deal.
HMN Tech, whose predecessor company was majority-owned by Chinese telecom giant Huawei Technologies Co Ltd, was selected in early 2020 to manufacture and lay the cable, the people said, due in part to hefty subsidies from Beijing that lowered the cost. HMN Tech’s bid of $500 million was roughly a third cheaper than the initial proposal submitted to the cable consortium by New Jersey-based SubCom, the people said.
The Singapore-to-France cable would have been HMN Tech’s biggest such project to date, cementing it as the world’s fastest-rising subsea cable builder, and extending the global reach of the three Chinese telecom firms that had intended to invest in it.
But the U.S. government, concerned about the potential for Chinese spying on these sensitive communications cables, ran a successful campaign to flip the contract to SubCom through incentives and pressure on consortium members.
Reuters has detailed that effort here for the first time. It’s one of at least six private undersea cable deals in the Asia-Pacific region over the past four years where the U.S. government either intervened to keep HMN Tech from winning that business, or forced the rerouting or abandonment of cables that would have directly linked U.S. and Chinese territories. The story of those interventions by Washington hasn’t been previously reported.
SubCom had no comment on the SeaMeWe-6 battle, and HMN Tech did not respond to requests for comment. In a statement last year about infrastructure projects, the White House briefly noted that the U.S. government helped SubCom to win the Singapore-to-France cable contract, without giving details. China’s foreign ministry did not respond to requests for comment. China Telecom, China Mobile, China Unicom and Orange did not respond to requests for comment. Microsoft declined to comment.
Undersea cables are central to U.S.-China technology competition.
Across the globe, there are more than 400 cables running along the seafloor, carrying over 95% of all international internet traffic, according to TeleGeography, a Washington-based telecommunications research firm. These data conduits, which transmit everything from emails and banking transactions to military secrets, are vulnerable to sabotage attacks and espionage, a U.S. government official and two security analysts told Reuters.
The potential for undersea cables to be drawn into a conflict between China and self-ruled Taiwan was thrown into sharp relief last month. Two communications cables were cut that connected Taiwan with its Matsu islands, which sit close to the Chinese coast. The islands’ 14,000 residents were disconnected from the internet.
Taiwanese authorities said they suspected a Chinese fishing vessel and a Chinese freighter caused the disruption. However, they stopped short of calling it a deliberate act and said there was no direct evidence showing the Chinese ships were to blame. China, which considers Taiwan a breakaway province, has ratcheted up military and political efforts to force the island to accept its dominion.
Eavesdropping is a worry too. Spy agencies can readily tap into cables landing on their territory. Justin Sherman, a fellow at the Cyber Statecraft Initiative of the Atlantic Council, a Washington-based think tank, told Reuters that undersea cables were “a surveillance gold mine” for the world’s intelligence agencies.
“When we talk about U.S.-China tech competition, when we talk about espionage and the capture of data, submarine cables are involved in every aspect of those rising geopolitical tensions,” Sherman said.
Two of the projects upended by the U.S. government involved cables that had already been manufactured and laid thousands of miles across the Pacific Ocean. U.S. tech behemoths Google LLC, Meta Platforms Inc and Amazon.com Inc were major investors in at least one, or in Meta’s case both, of those cables, according to public announcements made about the projects. The delays and rerouting of the cables cost each of those companies tens of millions of dollars in lost revenue and additional costs, four sources who worked on the projects said.
Amazon, Meta and Google declined to comment about these projects or the cable wars.
SubCom’s cable coup is part of a wider effort in Washington aimed at reining in China as Beijing strives to become the world's dominant producer of advanced technologies, be it submarines, semiconductor chips, artificial intelligence or drones. China is bulking up its military arsenal with sophisticated armaments. And Beijing has become increasingly assertive about countering U.S. influence worldwide through trade, weapons and infrastructure deals that are drawing wide swaths of the globe into its orbit.
The U.S. cable effort has been anchored by a three-year-old interagency task force informally known as Team Telecom.
To oust the Chinese builder from the Singapore-to-France cable, the United States proffered sweeteners – and warnings – to the project’s investors.
On the sweetener side, the U.S. Trade and Development Agency (USTDA) told Reuters it offered training grants valued at a total of $3.8 million to five telecom companies in countries on the cable’s route in return for them choosing SubCom as the supplier. Telecom Egypt and Network i2i Limited, a company owned by India’s Bharti Airtel Limited, got $1 million apiece, USTDA said. Djibouti Telecom, Sri Lanka Telecom and Dhivehi Raajjeyge Gulhun of the Maldives each received $600,000. None of the five responded to questions from Reuters.
Chinese Foreign Minister Qin Gang has warned that “conflict and confrontation” lie ahead unless Washington abandons its policy of “containment and suppression” towards China. REUTERS/Thomas Peter
Meanwhile, American diplomats cautioned participating foreign telecom carriers that Washington planned to impose crippling sanctions on HMN Tech, a development that could put their investment in the cable project at risk. The U.S. Commerce Department made good on that threat in December 2021, citing HMN Tech’s intention to acquire American technology to help modernize China’s People’s Liberation Army.
A senior U.S. State Department official confirmed that the department had advocated through its embassies to help SubCom win the contract, including warning other countries about the security risks posed by HMN Tech. Though the cable won’t come ashore in Chinese territory, the U.S. government believed HMN Tech could insert remote surveillance equipment inside the cable, the official said without providing evidence. The Commerce Department declined to comment.
Two months later, in February 2022, SubCom announced that the cable consortium had awarded it the contract to build the SeaMeWe-6 cable. China Telecom and China Mobile, which were due to own a combined 20% of the cable, pulled out because the Chinese government wouldn’t approve their involvement in the project with SubCom as the cable contractor, three people with knowledge of the matter told Reuters. China Unicom remained.
China’s foreign ministry and its defense ministry, which handles questions for the People’s Liberation Army, did not respond to Reuters’ questions.
On June 26, 2022, the White House published a fact sheet citing various upcoming infrastructure projects, including the SubCom undersea cable deal. The document said the U.S. government had “collectively helped secure” the award of that contract for SubCom.
The White House did not respond to a request for further comment.
Tensions rising
U.S.-China relations are at the lowest they’ve been in decades. The two countries have clashed on a host of issues, including China’s tacit support for Russia’s invasion of democratic Ukraine, its crackdown on Hong Kong, and the future of Taiwan, which Chinese President Xi Jinping has pledged to bring under Beijing’s control. In February, the United States shot down a Chinese spy balloon that floated into American airspace. China has claimed it was a weather balloon that got blown off course and accused the Americans of overreacting.
President Joe Biden’s policies are increasingly isolating China’s high-tech sector with the aim of bringing some technology manufacturing back to America while keeping cutting-edge U.S. innovation out of Chinese hands.
Over the last year, the Biden administration has pushed through a landmark bill to provide $52.7 billion in subsidies for U.S. semiconductor production and research. The Commerce Department in December added dozens of Chinese firms producing technology such as drones and artificial intelligence chips to its so-called Entity List, which severely restricts their access to U.S. technology.
Chinese Foreign Minister Qin Gang, speaking in Beijing this month, said the two superpowers are destined for “conflict and confrontation” unless Washington abandons its policy of “containment and suppression” towards China.
Three companies have dominated the construction and laying of fiber-optic subsea cables for decades: America’s SubCom, Japan’s NEC Corporation and France’s Alcatel Submarine Networks, Inc.
But a seismic shift occurred in 2008 when Huawei Marine Networks Co Ltd entered the fray. Owned by Chinese telecom Huawei Technologies, the Tianjin-based company initially built small cable systems in underserved markets such as Papua New Guinea and the Caribbean.
Fast-forward 15 years and the firm, now known as HMN Tech, has become the world’s fastest-growing manufacturer and layer of subsea cables, according to TeleGeography data.
But the company’s short history has been shaped by deteriorating U.S.-China relations.
In 2019, Huawei Technologies came under fire from the administration of then-U.S. President Donald Trump. The Commerce Department banned Huawei and 70 affiliates from buying parts and components from U.S. companies without government approval.
That move was part of a global campaign by Washington and its allies to stop Huawei Technologies from building fifth-generation, or 5G, communications networks around the world due to concerns that host nations would be vulnerable to Chinese eavesdropping or cyberattacks, the details of which were revealed in a previous Reuters investigation.
Huawei Technologies said at the time that it was a private company that is not controlled by the Chinese government. Contacted for this story, Huawei Technologies said it fully divested its stake in Huawei Marine in 2020 and is no longer connected with the cable-laying company, which rebranded as HMN Tech under new Chinese ownership.
HMN Tech expanded its ambitions with the PEACE cable, which came online last year and connects Asia, Africa and Europe. The firm was poised to make another great leap with the Singapore-to-France project before SubCom snatched it away.
The following account of how that deal fell apart for the Chinese players is based on interviews with six people directly involved in the SeaMeWe-6 contract. They all asked not to be named as they were not authorized to discuss potential trade secrets or matters of national security.
Backroom brawl
Large undersea cables cost several hundreds of millions of dollars. They are usually paid for by a consortium of tech or telecom companies that can spread the cost and risks, as well as take responsibility for any cable landing that ends up in their countries.
In the case of SeaMeWe-6, there were more than a dozen companies funding the cable, and there was immediately a split in the group, which would need to reach a consensus to select a contractor for the project, the people said.
China Telecom, China Mobile and China Unicom were resolutely behind HMN Tech, which had come in with a bid of around $500 million. Microsoft, Orange and India’s Bharti Airtel expressed concerns about the risk of potential U.S. pushback on HMN Tech’s involvement. Still, it was hard to argue with the price. SubCom’s bid was closer to $750 million.
On a series of video calls in mid-2020, the consortium members verbally agreed that HMN Tech would build the cable. SubCom would be the reserve in case the Chinese firm pulled out or failed to deliver on the terms of its proposal.
But behind the scenes, SubCom and the U.S. government were sowing seeds of doubt about whether HMN Tech was the best company for the job.
SubCom had already successfully applied for loans from the federal Export-Import Bank of the United States to support its bid. It also secured advocacy assistance from the Department of Commerce, which quickly mobilized U.S. embassies around the world to lean on consortium members in their host nations.
U.S. ambassadors in at least six of those countries, including Singapore, Bangladesh and Sri Lanka, wrote letters to local telecom carriers participating in the deal, according to people involved. One of these letters, seen by Reuters, said picking SubCom is “an important opportunity to enhance commercial and security cooperation with the United States.”
Separately, ambassadors and senior diplomats met with executives at foreign telecom companies in at least five countries. The message: HMN Tech could be subject to U.S. sanctions in the near future. That in turn would make it difficult for the telecoms to sell bandwidth because their biggest likely customers – U.S. tech firms – wouldn’t be allowed to use the cable.
One senior Asian telecom executive recalled a meeting in mid-2020 with a top U.S. diplomat and an American digital trade attaché. The U.S. officials explained how sanctions on HMN Tech would render the cable virtually worthless, providing him a printed spreadsheet with an economic analysis showing just that.
“They said we’d go bankrupt. It was a persuasive argument,” the executive told Reuters.
Two other Asian telecom executives in the consortium told Reuters they met with both Chinese and U.S. diplomats, who urged them to back HMN Tech and SubCom, respectively.
By the end of 2020, several consortium members, including Bangladesh Submarine Cable Company Limited, India’s Bharti Airtel, Sri Lanka Telecom, France’s Orange and Telecom Egypt, told their partners they were having second thoughts about choosing HMN Tech as a supplier, mostly over the fear of sanctions.
None of these companies responded to requests for comment.
China’s HMN Tech was the low bidder for a contract to lay an undersea cable known as the SeaMeWe-6. But pressure from Washington on the project’s investors swung the deal to U.S.-based SubCom. REUTERS/Dado Ruvic/Illustration
In February 2021, with the consortium partners at loggerheads, SubCom and HMN Tech were given a chance by the group to submit a “best and final offer.” SubCom lowered its bid to close to $600 million. But HMN Tech was now offering to build the cable for $475 million.
Several consortium members, including Microsoft, Singapore Telecommunications Limited (Singtel) and Orange, argued to the other participants that when the risk of sanctions was factored into the bids, SubCom was offering a better deal. The three state-owned Chinese companies strongly disagreed. The companies all declined comment.
On a tense final video call in late 2021, an executive from Singtel, the chair on the cable committee, urged the companies to vote on a final decision before the whole deal collapsed, two people who were on that call told Reuters.
China Telecom and China Mobile threatened to walk off the project, taking tens of millions of dollars of investment with them. But the majority of the consortium picked SubCom, and the two Chinese state-owned firms departed. Two new investors – Telekom Malaysia Berhad and PT Telekomunikasi Indonesia International (Telin) – joined the deal, and some of the original members raised their stakes to make up the shortfall, the people said.
Telekom Malaysia and Telin did not respond to requests for comment.
In addition to the successful campaign to freeze out HMT Tech from the Singapore-to-France cable, teams across the U.S. state and commerce departments and the Office of the U.S. Trade Representative once again coordinated with the White House to use diplomatic pressure to boot the Chinese firm from a project. This time it was a cable connecting the three Pacific island nations of Nauru, the Federated States of Micronesia and Kiribati, according to two sources involved in that deal.
The United States, Australia and Japan announced in December 2021 that they would jointly fund a cable on the same route, known as the East Micronesia Cable. In a joint statement this month, the three said they had met on March 8 to help “push forward” on this cable, without giving a time frame.
The U.S.-China backroom brawling over undersea cables is threatening to overwhelm the subsea cable industry, which has always relied on careful diplomatic collaboration to survive, said Paul McCann, a Sydney-based subsea cable consultant.
“I've never seen such geopolitical influence over subsea cables in the 40-odd years I’ve been involved in the business,” McCann told Reuters. “It's unprecedented.”
Team Telecom
At the heart of Washington’s newly aggressive strategy is Team Telecom. That’s the informal name for an interagency committee set up through an Executive Order signed by Trump in April 2020. The mission: safeguarding U.S. telecommunication networks from spies and cyberattacks.
Team Telecom is run by the National Security Division of the Department of Justice (DOJ). That division is headed by Assistant Attorney General Matthew Olsen. Nominated to that position by Biden in May 2021, Olsen has worked in a string of intel posts. He served as director of the National Counterterrorism Center under former President Barack Obama from 2011 to 2014, and before that as general counsel for the National Security Agency, the U.S. spy nerve center.
While the State Department and its partners have helped to prevent China from obtaining new subsea contracts in foreign places of U.S. strategic interest, Team Telecom has focused on a purely domestic concern: stopping any cable from directly connecting U.S. territory with mainland China or Hong Kong due to worries about Chinese espionage.
To that end, the team makes cable licensing recommendations to the U.S. telecom regulator, the Federal Communications Commission (FCC). Since 2020, the team has been instrumental in the cancellation of four cables whose backers had wanted to link the United States with Hong Kong, Devin DeBacker, a DOJ official and senior member of Team Telecom, told Reuters in an interview.
Hong Kong, a former British colony that transitioned to self-rule and is dubbed a “special administrative region” by China, has long been the investment gateway to the communist mainland because of its well-developed financial sector, open economy and highly-educated workforce.
However, in 2019, Beijing launched a security crackdown and increased surveillance in Hong Kong, prompting mass demonstrations. As China tightened its grip, Washington became concerned that Chinese spy agencies would intercept data on the planned undersea cables if that equipment ultimately came ashore in Hong Kong, said DeBacker, the chief of the Foreign Investment Review Section of the DOJ’s National Security Division.
“That provides a physical access point in what is effectively Chinese territory,” DeBacker said. “Because of the way that China has eroded Hong Kong's autonomy, that enabled the Chinese government to have a direct, all-access path, effectively a collection platform on U.S. persons’ data and communications.”
“The risk is real. It has materialized in the past, and what we're trying to do is prevent it from materializing in the future”
Washington’s decision to nix any Hong Kong terminus for the four planned subsea cable deals upended the plans of Google, Meta and Amazon. These tech titans have been among the biggest investors in new cables over the last decade as they seek to link up a network of data centers in the United States and Asia that underpin their fast-growing Cloud computing businesses, according to TeleGeography.
The first, a project owned by Google and Meta known as the Pacific Light Cable Network, will now only transmit data from the United States to Taiwan and the Philippines, after Team Telecom recommended that the FCC reject the Hong Kong leg. The section of the cable going to Hong Kong, spanning hundreds of miles, is currently lying abandoned on the ocean floor, two people involved in the deal said.
In an unsuccessful appeal to the FCC, Google and Meta said Team Telecom’s argument that China might intercept data on the cable was “unsupported and speculative,” and that its decision was “a referendum on China, rather than the assertion of any real specific concern,” according to an Aug. 20, 2020, submission by the companies that is available on the FCC website.
Similarly, the Bay to Bay Express Cable System, developed by Amazon, Meta and China Mobile, will not run as planned from Singapore to Hong Kong to California. As part of a deal struck between Amazon, Meta and Team Telecom, China Mobile left the consortium and the cable was rebranded as CAP-1, with a new route from Grover Beach, California, to the Philippines, three people involved said. The cable had already been almost entirely laid along the original route, and the section to Hong Kong now sits unused in the depths, the people said.
Google, Meta and Amazon declined to comment. China Mobile did not respond to requests for comment.
A pro-China supporter in Hong Kong holds a Chinese flag on July 1, 2021, the 24th anniversary of the former British colony’s return to Chinese rule. Beijing’s crackdown on the once-autonomous territory prompted Washington to forbid any subsea communications cables directly connecting the United States to Hong Kong over concerns about Chinese spying. REUTERS/Tyrone Siu
There is evidence the U.S. campaign has slowed China’s subsea cable juggernaut.
HMN Tech supplied 18% of the subsea cables to have come online in the last four years, but the Chinese firm is only due to build 7% of cables currently under development worldwide, according to TeleGeography. These figures are based on the total length of cable laid, not the number of projects.
In a tit-for-tat maneuver, China has thrown up a roadblock on a cable in which Meta is an investor, according to two cable consultants with direct knowledge of the project.
That cable, known as the Southeast Asia-Japan 2 cable, was planned to run from Singapore through Southeast Asia and touch down in Hong Kong and mainland China before going on to South Korea and Japan. China has delayed giving a license for the cable to pass through the South China Sea, citing concerns about the potential for the cable manufacturer – Japan’s NEC – to insert spy equipment on the line, the consultants said.
In response to Reuters’ questions, an NEC spokesperson said it does not comment on individual projects, but said that it does not insert surveillance equipment into its cables.
Meta and China’s foreign ministry did not respond to requests for comment.
In recent years, the U.S. government has blocked American firms from using telecom gear from Chinese firms that Washington has deemed to be national security threats, and it has banned several Chinese state-owned telecom companies from operating in U.S. territory.
Among them is China Telecom, which had previously won authorization to provide services in the United States. The FCC revoked that authorization in 2021, saying China Telecom’s America’s unit “is subject to exploitation, influence and control by the Chinese government.” The agency cited examples of the company using its access to U.S networks to misroute international traffic back to Chinese servers.
China Telecom failed to convince a U.S. court to reverse that decision.
The Chinese Embassy in Washington last year said the FCC has “abused state power and maliciously attacked Chinese telecom operators” without any factual basis.
Team Telecom’s DeBacker said China uses similar tactics on undersea cables, declining to give specific examples.
“The risk is real,” DeBacker said. “It has materialized in the past, and what we're trying to do is prevent it from materializing in the future.”
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>>> Iridium Communications (IRDM) Stock Rose After Cash Dividend Announcement
Insider Monkey
by Soumya Eswaran
March 6, 2023
https://finance.yahoo.com/news/iridium-communications-irdm-stock-rose-070814071.html
Baron Funds, an investment management company, released its “Baron Focused Growth Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund (Institutional Shares) decreased by 4.52%, compared to a 4.72% rise for the Russell 2500 Growth Index and a 7.56% increase for the S&P 500 Index. For the full year, the fund trailed the primary benchmark the Russell 2500 Growth index and declined 28.14%. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Baron Focused Growth Fund highlighted stocks like Iridium Communications Inc. (NASDAQ:IRDM) in the Q4 2022 investor letter. Headquartered in McLean, Virginia, Iridium Communications Inc. (NASDAQ:IRDM) is a mobile voice and data communications services and products provider. On March 3, 2023, Iridium Communications Inc. (NASDAQ:IRDM) stock closed at $62.57 per share. One-month return of Iridium Communications Inc. (NASDAQ:IRDM) was 4.90%, and its shares gained 62.18% of their value over the last 52 weeks. Iridium Communications Inc. (NASDAQ:IRDM) has a market capitalization of $7.882 billion.
Baron Focused Growth Fund made the following comment about Iridium Communications Inc. (NASDAQ:IRDM) in its Q4 2022 investor letter:
“Iridium Communications Inc. (NASDAQ:IRDM), a leading mobile voice and data communications services vendor offering global coverage via satellite, increased 15.8% and added 58 bps to performance in the quarter. It increased 24.2% for the year and helped performance by 106 bps. The stock outperformed as the company’s revenue growth accelerated, leading to strong profitability and cash flow, which the company used to buy back its stock. The company continues to benefit from its $3 billion investment in its satellite constellation, which is a technologically and capital-intensive effort and a strong barrier to entry. Iridium continues to generate consistent and growing revenue and cash flow, which should lead to a return of capital to shareholders for at least the next 10 years. That is since its satellites last longer than its competitors’ satellites, and they offer stronger broadband given its low-earth orbit positioning.
Shares of Iridium Communications Inc., a leading mobile voice and data communications services vendor offering global satellite coverage, rose after announcing its first cash dividend as part of its shareholder return program. Expectations for smartphone compatibility remained robust, with record quarterly results showing double-digit growth in commercial service revenue and solid profitability. Initiatives including aircraft tracking system Aireon and enterprise broadband service Certus are maturing. Lastly, Iridium won a $324 million contract from the Space Development Agency."
Iridium Communications Inc. (NASDAQ:IRDM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Iridium Communications Inc. (NASDAQ:IRDM) at the end of the fourth quarter which was 25 in the previous quarter.
We discussed Iridium Communications Inc. (NASDAQ:IRDM) in another article and shared the list of best telecom stocks to invest in. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
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Paramount Global - >>> Another relatively recent investment made by Berkshire is Paramount Global (PARA), a leading global media and entertainment giant. For Buffett, this pick appears to be a way to play declining interest in conventional media names, at a time when streaming and innovation is looking to disrupt this overall sector. Over the past year alone, Paramount has lost roughly 30% of its value, and much more from its 2021 peak.
https://finance.yahoo.com/m/b6aa7a04-2450-3273-aae3-a4758c72e87e/want-passive-income-in-a-bear.html
Paramount does have its own streaming network, Paramount Plus. Accordingly, this isn't a company that's completely falling behind its peers in monetizing its offerings in different ways. The company's impressive release of Top Gun: Maverick last year certainly provided investors with the idea that perhaps the franchises this outfit owns aren't completely washed up. (This movie was the highest-grossing film at the domestic box office last year, and quite good, if I don't say so myself.)
Paramount's performance at the box office was notable, putting forward 10 films, six of which debuted at the No. 1 spot, with the company earning more than $2 billion in ticket sales. Top Gun: Maverick brought in the lion's share of that take, with $1.5 billion in ticket sales, but it proves what solid media franchises may be worth as stand-alone businesses.
The question many investors have with Paramount is how its streaming platform will perform moving forward. Paramount Plus does hold a considerable library of content, including more than 30,000 television episodes from CBS, BET, Nickelodeon, MTV, Comedy Channel, and Paramount Pictures. Its film library is also impressive, leading to many investors attempting to value this business on the basis of its content alone.
It appears Buffett is making the bet that Paramount's streaming platform, along with its library of content (which may be undervalued relative to its peers) could propel this dividend-producing stock higher over time. Such a view would lead one to believe that the company's dividend outlook could be more rosy than what the market is pricing in, making this a unique value, income, and growth bet for the medium- to longer-term.
While Paramount appears to be among the more difficult companies to assess due to its uncertain outlook, this is a company that's profitable, trading at around 21 times earnings, and pays a dividend yield of 4.4%. That's the kind of business Buffett clearly likes, and is reason enough for many investors to at least consider this often-overlooked company.
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Paramount Global - >>> Paramount is one of the leading entertainment companies, owning the namesake Paramount Pictures studio, in addition to top TV networks like CBS, Comedy Central, and many others. But recent muted financial results due largely to the weak advertising market and investments to support the company's streaming services sent the stock down 26% over the last year, although it has rebounded 30% year to date.
https://www.fool.com/investing/2023/03/02/why-apple-paramount-disney-no-brainer-buys/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
Right now there are some negatives weighing on the stock. Most of all, Paramount's TV media revenue fell 7% year over year in the fourth quarter, which offset robust growth in the streaming and film segments. Moreover, Paramount reported a 63% decline in operating profit last year related to content spending to support the growth of Paramount+. This also shows what will send the stock back up.
Paramount will improve its operating profit and free cash flow, but meanwhile the company's market cap (total shares outstanding times the stock price) is sitting at less than five times its previous free cash flow peak from a few years ago. That's an incredible bargain for this top media franchise.
Free cash flow over the last four quarters was negative $139 million. But this has been part of a plan to launch Paramount+, which just completed a record quarter of subscriber gains. Management has stated that 2022 was an investment year, but the focus is to return to positive free cash flow in 2024, which is a catalyst.
The market has lost sight of the long-term intrinsic value of Paramount's entertainment properties. When you own an iconic film studio and a deep library of content, including the past year's biggest domestic box office hit with Top Gun: Maverick, good things will happen for patient investors.
As Paramount Global marches toward positive free cash flow over the next few years, the payoff could be very rewarding.
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Paramount Global - >>> Paramount Global benefits from operating one of only four broadcast networks in the U.S. Its market position ensures broad distribution and large audiences. Its cable networks, which include BET, Comedy Central, MTV, Nickelodeon, and Showtime, are well-diversified across audience demographics, and it’s also the owner of its namesake film and television studios.
https://www.fool.com/investing/stock-market/market-sectors/communication/media-stocks/
The company rebranded its DTC efforts in 2021 and now combines much of Viacom, Paramount, and CBS content into a single streaming service, Paramount+. In Europe, Paramount is partnering with Comcast’s Sky for distribution of Paramount+ in some markets and a co-owned SkyShowtime service in other markets. The partnership should improve consumer awareness and reduce distribution costs.
Paramount is also a leader in the FAST market with Pluto TV. It uses the streaming service, which claims more than 72 million users globally, to further promote its content and paid streaming options.
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TMUS, VZ - >>> This New Technology Could Destroy 1 of Verizon's Biggest Advantages
Motley Fool
By Adam Levy
Feb 11, 2023
KEY POINTS
Verizon's customer base is the most loyal among the big three carriers.
But new phones make it easier to try other carriers.
The telecom's network lead has disappeared and customers may find better service elsewhere if they try.
Verizon's loyal customers may not be so loyal if they can try another network risk-free.
Verizon (VZ 0.20%) has, by far, the most loyal customers among the big three wireless carriers, but that could soon change.
Research compiled by Evercore ISI analysts found Verizon's net loyalty intent remains significantly elevated over rivals T-Mobile (TMUS 0.16%) and AT&T (T 0.89%). Net loyalty intent measures the difference in the percentage of customers planning to leave a carrier versus those planning to stay. Verizon's customers remain loyal even after it pushed through a price increase last summer, and its network advantage has disappeared in the 5G era.
But that loyalty may be about to disappear with the growing adoption of a new piece of technology: eSIMs, which remove the need to put a new physical SIM card in your phone to switch carriers.
Why Verizon customers chose Verizon in the first place
Verizon built its customer base on the back of a leading network for the past 20 years or so. ("Can you hear me now?") That means many Verizon customers subscribe because they want the assurance of a reliable network. They're less sensitive to price and more risk averse, the Evercore analysts point out.
Verizon saw its subscriber churn rate climb in the third quarter after raising rates this summer. Management noted the financial impact of the pricing action greatly outweighed the customer losses it incurred. What's more, it managed to push churn rates back down in Q4, a period where churn typically increases quarter over quarter. That's better than AT&T, which saw churn remain flat from Q3 to the Q4 after its own summer price hike.
But the grumblings are growing.
Price-sensitive customers are fleeing Verizon in search of better values. That's most evidenced in its prepaid subscriber losses, which totaled 445,000 in 2022.
Furthermore, while Verizon continues to tout the reliability and strength of its network, T-Mobile's marketing team has been doing a good job of changing people's perceptions. T-Mobile CEO Mike Sievert said Verizon's lead in network perception had been cut in half over the last three years.
Still, it makes sense that Verizon customers are the most hesitant to try another carrier. But if trying out a new carrier was as easy as downloading a new app, they might be willing to test it out.
Lowering friction
The growth of eSIM makes it easier for customers to switch, and that's bad news for Verizon.
eSIM is a software replacement for the physical SIM cards you used to need for your phone to connect to a wireless network. And a user can have multiple eSIMs installed on their phone at the same time. More and more phones are shipping with eSIM capabilities, and the iPhone 14, for example, doesn't even have a physical SIM tray.
T-Mobile is ready to take advantage. It started offering Network Pass in August last year, which gave people the ability to try T-Mobile's service for 90 days. All they had to do was click a few buttons in the T-Mobile app, and they received an eSIM (if their phone wasn't locked to their current carrier).
"Everything that removes switching friction in this industry, and eSIMs are one of them, it's good for us because we're a net share taker," Sievert said at an investor conference in December.
Increasing the amount of switching is important for T-Mobile because the outlook for 2023 across the industry is for fewer gross additions in postpaid wireless. Lowering the hurdles and decreasing the risk of trying another network should benefit T-Mobile. Conversely, Verizon likely wants to keep customers locked into its network as much as possible.
But Verizon is also moving away from device promotions that could lock customers into their plans for as long as 30 months. It's focused mostly on high-value customers, but those customers are becoming less satisfied.
As switching friction decreases, Verizon is likely going to continue struggling to expand its subscriber base. And even if it can raise the average amount they pay, it's going to result in sluggish revenue growth no matter what.
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T-Mobile US, Inc. - 10 recession stocks -
https://finance.yahoo.com/news/10-companies-industries-money-during-165619500.html
Industry: Communication Services
S&P 500 Outperformance in 2008: 14.8%
T-Mobile US, Inc. (NYSE:TMUS) is a wireless telecommunication services company providing mobile communications services in the US, Puerto Rico, and the United States Virgin Islands. The company is based in Bellevue, Washington.
An Overweight rating was reiterated on T-Mobile US, Inc. (NYSE:TMUS) shares on January 5 by analyst Philip Cusick at JPMorgan. The analyst also placed a $200 price target on the stock.
T-Mobile US, Inc. (NYSE:TMUS) has become the second-largest US wireless provider after its merger with Sprint. The company managed to beat the odds during the global 2008 recession by outperforming the S&P 500 by 14.8%. It also outperformed the benchmark index by 55.7% in 2020. Since T-Mobile US, Inc. (NYSE:TMUS) is now an even more significant player in the communication services industry, it may prove to be recession-resistant in the coming years as well, due to its ability to outgrow its primary competitors.
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T-Mobile US (TMUS) - >>> Among wireless carriers in the United States, T-Mobile US (NASDAQ:TMUS) ranks third in terms of market share. However, among telecom stocks, TMUS has been one of the better-performing names in the space.
TMUS stock is up by double-digits over the past year. This company’s main rivals have delivered a much less stellar performance during this time. Yet even as T-Mobile contends with issues such as a data breach, and as one sell-side analyst (MoffettNathanson’s Craig Moffett) warns of “growth deceleration,” don’t assume it’s all middling returns from here for this B-rated telecom stock.
Growth may slow in the coming year, but T-Mobile is guiding for between 5 million and 5.5 million subscriber additions this year. That’s not all. The company also anticipates billions in additional cost-savings stemming from its 2020 merger with Sprint. Both these factors leave TMUS well-positioned to materially increase earnings in the next few years.
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https://finance.yahoo.com/news/7-great-growth-stocks-buy-110030242.html
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Name | Symbol | % Assets |
---|---|---|
Facebook Inc A | FB | 15.25% |
Alphabet Inc Class C | GOOG | 11.97% |
Alphabet Inc A | GOOGL | 11.33% |
The Walt Disney Co | DIS | 6.90% |
AT&T Inc | T | 4.84% |
Verizon Communications Inc | VZ | 4.64% |
Comcast Corp Class A | CMCSA | 4.57% |
Netflix Inc | NFLX | 4.20% |
Charter Communications Inc A | CHTR | 2.97% |
Activision Blizzard Inc | ATVI | 1.82% |
Name | Symbol | % Assets |
---|---|---|
Facebook Inc A | FB | 15.00% |
Alphabet Inc Class C | GOOG | 11.83% |
Alphabet Inc A | GOOGL | 11.23% |
AT&T Inc | T | 7.95% |
Verizon Communications Inc | VZ | 4.59% |
Comcast Corp Class A | CMCSA | 4.53% |
The Walt Disney Co | DIS | 4.17% |
Netflix Inc | NFLX | 4.16% |
Charter Communications Inc A | CHTR | 2.98% |
Activision Blizzard Inc | ATVI | 1.74% |
Name | Symbol | % Assets |
---|---|---|
NXP Semiconductors NV | NXPI | 5.13% |
Qualcomm Inc | QCOM | 5.04% |
Analog Devices Inc | ADI | 4.94% |
Nokia Oyj ADR | NOK | 4.94% |
Telefonaktiebolaget L M Ericsson ADR Class B | ERIC | 4.53% |
Xilinx Inc | XLNX | 4.12% |
American Tower Corp | AMT | 3.05% |
Akamai Technologies Inc | AKAM | 2.90% |
AT&T Inc | T | 2.90% |
Skyworks Solutions Inc | SWKS | 2.90% |
Name | Symbol | % Assets |
---|---|---|
Broadcom Inc | AVGO | 1.45% |
Intel Corp | INTC | 1.42% |
Marvell Technology Inc | MRVL | 1.40% |
Micron Technology Inc | MU | 1.39% |
Advanced Micro Devices Inc | AMD | 1.38% |
Lenovo Group Ltd | 0992.HK | 1.37% |
Telefonaktiebolaget L M Ericsson Class B | ERIC-B.ST | 1.35% |
Qorvo Inc | QRVO | 1.35% |
MediaTek Inc | 2454.TW | 1.35% |
Prysmian SpA | PRY.MI | 1.34% |
Name | Symbol | % Assets |
---|---|---|
Facebook Inc A | FB | 20.36% |
Alphabet Inc A | GOOGL | 11.76% |
Alphabet Inc Class C | GOOG | 11.75% |
T-Mobile US Inc | TMUS | 4.95% |
Electronic Arts Inc | EA | 4.54% |
Netflix Inc | NFLX | 4.46% |
Charter Communications Inc A | CHTR | 4.27% |
The Walt Disney Co | DIS | 4.25% |
Activision Blizzard Inc | ATVI | 4.24% |
Verizon Communications Inc | VZ | 4.13% |
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