On The Rock
Top Themes of the Week
Greetings and Happy Easter Sunday,
Fellow investors, the world of sports, media, and tech never seems to slow down. Let's delve into the fascinating forces and controversies shaping these industries.
Sports
World Cup Windfall: Economic Boost for Host Cities
The 2026 FIFA World Cup promises an economic windfall for its host cities. With its expansive format—104 games, 48 teams, spread across the US, Mexico, and Canada—Boston Consulting Group anticipates $5b+ in benefits and a $1b+ boost to workers' earnings. Miami, in particular, stands to gain hundreds of millions from hosting seven matches.
Streaming Strikes and Fumbles: Peacock Scores, Amazon Stumbles
Peacock ($CMCSA) continues its sports streaming dominance, securing exclusive rights to an NFL opening week game following its record-breaking AFC Wild Card broadcast. However, Amazon ($AMZN) seems to be backing away from its potential deal to pick up MLB games from the embattled Bally Sports. This casts a shadow on the future of regional sports streaming.
Betting Backlash: NBA, NCAA, and the Dark Side of Gambling
The sports betting industry is facing heightened scrutiny. Ruby Gobert's recent criticism sparked an NBA investigation into betting irregularities involving a player. The NCAA's "Draw the Line" campaign targets the risks of sports betting, emphasizing athlete harassment and threats to the integrity of the game. It's clear that ethical concerns are coming to the forefront as gambling's influence expands.
Additionally, DraftKings ($DKNG) stock took a hit on Wednesday after the NCAA announced a push to ban college prop bets. The company's shares closed down 6.8%, reflecting concerns over this revenue stream. The news also impacted competitors like FanDuel and MGM Resorts ($MGM), suggesting broader anxieties within mobile sports betting.
Media
Disney+ and Hulu: A Unified Force
The official launch of the Hulu-Disney+ bundle marks a turning point in the streaming landscape. Disney's ($DIS) decision to combine its two platforms signals a commitment to convenience and value for subs. Positive feedback from the beta phase suggests a successful transition. While licensing complexities linger, the integrated bundle provides an alternative to standalone subscriptions.
FAST and Furious: Content is King
The expansion of FAST (Free Ad-Supported Streaming Television) services is a trend to watch. Sony's launch of dedicated FAST channels across Europe, featuring curated and localized content, demonstrates a demand for accessible programming. Meanwhile, Pluto TV ($PARA) continues its aggressive content strategy with new Warner Bros. Discovery channels and a steady stream of on-demand titles, solidifying its position as a formidable FAST player.
Tech Titans
Apple
Apple's 35th annual Worldwide Developers Conference (WWDC 2024) will take place June 10-14 as a free online event, focusing on new software and technology. The company also faces a wave of lawsuits alleging it holds a monopoly on the smartphone market, inflating costs of its products. On a positive note, Apple's Vision Pro headset may get a boost in the important Chinese market as Tencent will reportedly supply apps for the device.
Meta
Meta has introduced a new feature on Instagram and Threads, allowing users to opt-out of seeing political content from accounts they don't follow. This aims to reduce unsolicited political content in feeds.
Dell
Dell carried out two major rounds of job cuts throughout 2023, resulting in a 9.7% decrease in its workforce. This March, the stock jumped 34%.
