“I feel like skateboarding is as much of a sport as a lifestyle, and an art form, so there's so much that transcends in terms of music, fashion, and entertainment.” |
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Big Tech’s big flop on earnings |
Meta, Google, and Microsoft shares plummeted after reporting earnings this week as incremental macro headwinds finally began infiltrating the walled gardens of the Silicon Valley leaders. For Alphabet and Meta, reliance on ad revenue, which is slowing as marketers reign in spending, is beginning to flash grim warning signs. |
Big tech is clearly no longer a safe place to hide as cyclical and macro trends begin to affect earnings. In our eyes, there could be relative outperformance in some of these big names as the behemoths shore up their cash reserves, and short-term externalities get priced in. |
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The Disney subsidiary, ESPN, is selling its majority stake in its X-Games business to MSP Sports Capital, a private equity firm. The X-Games is a showcase and competition of extreme sports ranging from motocross and snowboarding to skateboarding and snowmobile events. Tony Hawk, the iconic skateboarder, will join the investor group. |
The X-Games could benefit from their new chief executive, Steven Flisler, the former president of content at Twitch. Under Fliser, the business aims to not only grow its alternative sports from beyond the confines of super leagues such as the NFL and NBA, but also to break the broadcasting barrier of how traditional sporting content is consumed. |
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Augusta National under investigation |
Augusta National Golf Club, the home of the Masters, is under investigation by the Department of Justice in an antitrust probe that already includes the United States Golf Association and the PGA Tour. The antitrust investigation is part of a broader battle between the PGA tour and the Saudi Arabian-backed LIV tour, which claims the PGA illegally suspended players for joining the LIV tour. |
Who knew the golf industry would become not only a battle over big business and anti-competitive practices but also a proxy fight amidst wider geopolitical positioning? Augusta National claims some of the most influential people in the country as members of its club, so this fight over the fairway might lead to several more divots. |
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Any updates on earnings for Microsoft? It is tough to decipher and curious to hear your thoughts. |
Microsoft (MSFT) reported earnings after the bell on Tuesday and although the company produced a solid quarter, it was still weaker than what the Street expected. MSFT beat on top and bottom line which was largely driven by strong underlying performance and execution across most business lines.
However, the combination of a 3% year over year headline decline in commercial bookings and a guidance miss for all three reporting segments for FQ2 has the stock under significant pressure. While the growth at scale across many of its divisions continues to impress, incremental macro headwinds are starting to show. Enterprise IT budgets seem to be holding up better than expected and we will monitor the margin pressure and top line growth over the coming quarters.
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Watch our head of investor relations, John DeYonker, discuss private equity. |
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