Has Wall Street completely gone off the deep end? Have social media valuations reached the ridiculous levels of the Dot Com Bubble? The answer to both must be yes. How can a company be valued at $10 billion without any rvenue, business plan or actionable model? It isn't as if Snapchat hit a rough patch and is trying to increase its net income next quarter. The company hasn't sold anything, hasn't made any money and quite frankly isn't a real business. How would it be monetized? Through random spam ads sent to its users? That would kill the "company." Regardless of whether the company is set to do its IPO and enter the market or may be sold in 5 years to another VC firm, the fact that companies are being valued pre-revenue at such extraordinary numbers and projects is maddening.
History will repeat itself, regardless of whether we learn from our mistakes, because human nature is the same. It is saddening that analysts are saying that $10 billion is a fair value for a "business" with no revenue simply because it's what someone is willing to pay for it in the market. We shouldn't always be price takers, or foolish enough to value a company at number. To compare the company to Twitter (TWTR) and value it accordingly is even more absurd! Taking one extremely overvalued company and comparing it to another "business" in order to find its value isn't prudent financial practice. A business is the present value of its future cash flows, and I may lack vision to see how Snapchat will have future cash flow to justify its current $10 billion valuation.
Top 10 Transportation Companies To Invest In Right Now: News Corporation(NWSA)
News Corporation operates as a diversified media company worldwide. Its Cable Network Programming segment produces and licenses news, business news, sports, general entertainment, and movie programming for distribution through cable television systems and direct broadcast satellite operators primarily in the United States, Latin America, Europe, and Asia. The company?s Filmed Entertainment segment produces and acquires live-action and animated motion pictures for distribution and licensing in entertainment media, as well as produces and licenses television programming worldwide. Its Television segment operates 27 broadcast television stations in the United States. The company?s Direct Broadcast Satellite Television segment distributes programming services via satellite and broadband directly to subscribers in Italy. Its Publishing segment provides newspapers and information services, such as publishing national newspapers in the United Kingdom, approximately 146 newspapers in Australia, and a metropolitan and a national newspaper in the United States; book publishing services, including the publishing of English language books worldwide; and integrated marketing services comprising the publishing of free-standing inserts, which are marketing booklets containing coupons, rebates, and other consumer offers, as well as provides in-store marketing products and services, primarily to consumer packaged goods manufacturers in the United States and Canada. The company also sells advertising, sponsorships, and subscription services on the company?s various digital media properties and outdoor advertising space on various media primarily in Russia and eastern Europe; and provides data systems and professional services that enable teachers to use data to assess student progress and deliver individualized instructions. News Corporation was founded in 1922 and is headquartered in New York, New York.
Advisors' Opinion:- [By Lee Jackson]
News Corp. (NASDAQ: NWSA) boasts a cable-leading news operation and a host of additional entertainment properties. The consensus target for the stock is $17.30.
Top 5 Media Stocks To Invest In 2014: DISH Network Corporation(DISH)
DISH Network Corporation, through its subsidiaries, provides direct broadcast satellite (DBS) subscription television services in the United States. It offers programming that includes approximately 280 basic video channels, 60 Sirius satellite radio music channels, 30 premium movie channels, 35 regional and specialty sports channels, 2,800 local channels, 250 Latino and international channels, and 55 channels of pay-per-view content. The company also offers local HD channels in approximately 160 markets and 215 national HD channels; and receiver systems, including a small satellite dish, digital set-top receivers, and remote controls. In addition, it provides DISHOnline.com, which enables DISH Network subscribers to watch 150,000 movies, television shows, clips, and trailers; DISH Remote Access that enables subscribers to remotely manage their DVRs using compatible mobile devices, such as smartphones, tablets, and laptops through their broadband-connected receiver; and Go ogle TV that enables DISH Network subscribers to search the Internet, check email, interact with social media, and find additional online programming content while simultaneously watching television. As of March 31, 2011, the company had approximately 14.191 million customers. DISH Network provides receiver systems and programming through direct sales channels; and independent third parties, such as small satellite retailers, direct marketing groups, local and regional consumer electronics stores, nationwide retailers, and telecommunications companies. The company was founded in 1980 and is headquartered in Englewood, Colorado.
Advisors' Opinion:- [By Paul Ausick]
Charter was reported to have been talking with several banks about putting together a deal for the larger company and today�� reports may be the beginning of a serious round of bidding for Time Warner. Other bidders might include Dish Network Corp. (NASDAQ: DISH), whose chairman Charlie Ergen has made no secret of his belief that the pay TV industry needs to consolidate but has so far been unable to strike a deal for wireless spectrum or a terrestrial based partner.
- [By WWW.DAILYFINANCE.COM]
Aereo/AP LOS ANGELES -- The Supreme Court shot down Aereo's business model this week, but that doesn't mean customers' desire for a better TV experience is gone. Americans are still fed up with huge channel bundles, high prices, poor service and the lack of ability to watch all their shows on all their devices. That's part of why Aereo was attractive: It offered local broadcast channels and a few others on multiple devices for just $8 a month. Industry watchers say the pay TV business must continue to evolve to win over unhappy customers, even if the nation's top court said grabbing signals from the airwaves and distributing them online without content-owner permission isn't the way. "Even without Aereo, the reason people were cutting the cord, for cost reasons and so on, those don't go away," said Robin Flynn, an analyst with market research firm SNL Kagan. Last year, the number of pay TV subscribers in the U.S. fell for the first time, slipping 0.1 percent to 94.6 million, according to Leichtman Research Group. Into that breach have leapt companies that have offered quality TV content online for low cost, including Netflix (NFLX) and Amazon.com (AMZN). Hulu, which is owned by major broadcast networks ABC (DIS), NBC and Fox (FOX), offers full episodes of popular shows like "The Colbert Report" the next day for free. While that's not live TV, which Aereo offered, for many it's a good-enough substitute. The decision against Aereo is a setback, but not a fatal one for people who want to break away from traditional TV, said Bill Niemeyer, senior analyst at TDG Research. "While the content on the major broadcast networks is very important for some people, it's not important for everyone," Niemeyer said. "So it's a dent, but I don't think it's going to significantly change the trends." If anything, the rise and fall of Aereo has highlighted an important fact -- that high-quality TV signals are available on the airwaves for free -- something that might hav
- [By Holly LaFon] bought 4 million shares of new holding Dish Network Corp. (DISH) in the fourth quarter at about $26 per share.
Dish Network Corp. offers satellite television products and services. Dish Network Corp. has a market cap of $12.72 billion; its shares were traded at around $29.02 with a P/E ratio of 10.4 and P/S ratio of 1. Dish Network Corp. had an annual average earnings growth of 28% over the past 10 years.
Dish was also a featured Magic Formula stock pick on GuruFocus in September 2011. The author notes that the company�� share price has stagnated while the underlying business value has increased. Over the last five years, its share price has declined 24%.
Revenue at the company increased every year from $4 billion in 2001 to $12.6 billion in 2010, and earnings have increased from a net loss of $215 million to a gain of $985 million over the same span of time. Free cash flow has been strong for the last eight years.
The company is highly levered, however. It has about $3.4 billion in cash on its balance sheet, along with about $8.8 billion in long-term liabilities and debt.
It is also losing customers. In its most third quarter, it lost approximately 111,000 net subscribers, compared to 29,000 subscribers lost during the third quarter of 2010. The increase in lost subscribers was from increased competitive pressures and competitors��promotional offers. Also, telecommunications companies continuing to gain new customers and the overall weak economy contributed.
��oing forward, we plan to build on the momentum of our introduction of the Blockbuster-branded programming service which allows DISH customers to stream movies and TV shows as well as receive DVDs by mail,��said Joe Clayton, president and CEO of DISH Network.
See Daniel Loeb�� portfolio here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of Daniel Loeb.
Top 5 Media Stocks To Invest In 2014: Thomson Reuters Corp(TRI)
Thomson Reuters Corporation provides intelligent information for businesses and professionals worldwide. The company allows market participants to connect, access content, and trade in a secure environment through Thomson Reuters Eikon desktop, Thomson Reuters Elektron network, content integration and management technology, content feeds and databases, and transactions infrastructure solutions that support buy- and sell-side customers to trade in foreign exchange, fixed income and derivatives, equities, exchange-traded instruments, and commodities and energy markets. It also offers information, analytics, workflow, and technology solutions to buy-side and off-trading floor customers; access to liquidity in over-the-counter markets, trade execution, and connections for market participants and financial professionals? communities; and a suite of solutions offering informed outcomes to regulated industries and law firms. In addition, the company provides critical information , decision support tools, and software and services to legal, investigation, business, and government professionals; integrated tax compliance and accounting software and services for accounting and law firms, corporations, and government professionals; intellectual property and scientific resources that enable its customers to discover, develop, and deliver innovations; and data analytics, and performance benchmarking solutions and services to healthcare sector. Further, it offers coverage of global, regional, and national news in 20 languages covering politics, business, finance, entertainment, lifestyle, technology, health, science, and sports; and engages in advertising-supported direct-to-consumer publishing activities of Reuters.com and its network of Websites, mobile applications, and electronic out-of-home displays. The company was formerly known as The Thomson Corporation and changed its name to Thomson Reuters Corporation in April 2008. The company is headquartered in New York, New York.
Advisors' Opinion:- [By Bill Smith]
FDS operates in a highly competitive industry, some with more resources. Their competitors include:
Thomson Reuters Corp. (TRI)BloombergInteractive (IDC)MSCI Inc. (MXB)Morningstar Inc. (MORN)Track Data Corp. (TRAC)Edgar Online (EDGR)McGraw-Hill (MHP ) - [By Jonas Elmerraji]
It's been a solid year for Thompson Reuters (TRI); since the calendar flipped over to January, this $30 billion financial media firm has rallied more than 22%. But don't worry if you've missed out on the move -- TRI looks well-positioned for higher levels thanks to the pattern that's been setting up in shares.
Thompson Reuters is currently forming an ascending triangle pattern, a bullish setup that's formed by horizontal resistance above shares at the $35.50 level and uptrending support to the downside. Basically, as TRI bounces in between those two technically-important price levels, it's getting squeezed closer and closer to a confirmed breakout above that $35.50 price level. When the breakout happens, it's time to be a buyer.
TRI closed above the $35.50 level in yesterday's session, but it's a little early to call it a breakout just yet. If shares can hold above that breakout level all through today's session, then the buy signal is worth heeding.
- [By Rich Smith]
This series, brought to you by Yahoo! Finance, looks at which upgrades and downgrades make sense, and which ones investors should act on. Today, our headlines feature an upgrade for Thomson Reuters Reuters (NYSE: TRI ) , a new buy rating for Novavax (NASDAQ: NVAX ) -- but for Union Pacific (NYSE: UNP ) , a downgrade. Let's get that bad news out of the way first.
Top 5 Media Stocks To Invest In 2014: Time Warner Inc.(TWX)
Time Warner Inc. operates as a media and entertainment company in the United States and internationally. It operates in three segments: Networks, Filmed Entertainment, and Publishing. The Networks segment provides domestic and international networks, premium pay and basic tier television programming services, and digital media properties, which primarily consist of brand-aligned Websites. Its premium pay television services consist of the multi-channel HBO and Cinemax premium pay television services. This segment provides programming to cable system operators, satellite service distributors, telephone companies, and other distributors; sells advertising; and licenses original programming to domestic and international television networks. The Filmed Entertainment segment produces and distributes feature films, television and other programming, and videogames; distributes home video products; and licenses rights to its feature films, television programming, and characters. T he Publishing segment publishes magazines and books; and operates various Websites, as well as engages in marketing services and direct-marketing businesses. This segment publishes magazines on style and entertainment, lifestyle, news, and sports. The company?s brands include TNT, TBS, CNN, HBO, Cinemax, Warner Bros., New Line Cinema, People, Sports Illustrated, and Time. Time Warner Inc. was founded in 1985 and is headquartered in New York, New York.
Advisors' Opinion:- [By Paul Ausick]
Minecraft was also the most popular paid download at the App Store, but a new puzzle game, Threes, rose to second place, and three new games replaced January’s leaders in the App Store’s paid download sweepstakes. Only one, Card Wars — Adventure Time, was delivered by a publicly traded company, Time Warner Inc.’s (NYSE: TWX) Cartoon Network.
- [By Garrett Cook]
Time Warner (NYSE: TWX) shares shot up 17 percent to $83.00 after the company confirmed that it rejected a proposal from Twenty-First Century Fox (NASDAQ: FOXA) to acquire all of the outstanding shares of the company.
- [By Paul Ausick]
In what can only be described as a move toward letting subscribers pick and choose which cable and broadcast networks they��e willing to pay for (often called a la carte programming), Comcast Corp. (NASDAQ: CMCSA) is reportedly about to offer a package that includes Time Warner Inc.�� (NYSE: TWX) popular HBO channel and HBO Go, the channel�� mobile app. Comcast�� so-called ��nternet Plus��package includes broadband Internet service, a basic group of about 10 or so cable channels that would include local channels, and Comcast�� own streaming video offering, Streampix.
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