What’s Going On Here? German courts ruled that the European Central Bank’s (ECB’s) economy-boosting quantitative easing program might be unconstitutional. Quantitative easing (QE) is when a central bank buys government bonds from the market and, in doing so, puts cash to work doing all sorts of productive things for the economy. What Does This Mean? German courts don’t think…
Author: Finterest
Ep 114: Spoiled
What’s Going On Here? Chevron and Exxon – the most valuable Western oil producer – reported first-quarter updates that reveal the mess the oil industry’s just stepped in. What Does This Mean? Exxon unexpectedly announced its first quarterly loss in 32 years, while Chevron announced a better-than-expected first quarter. The oil markets have been weighed down lately,…
Journal Report 21: 3 ways COVID-19 impacted Microsoft’s latest earnings
Introduction Despite the coronavirus, Microsoft managed to make its overall revenue in the latest quarter jumped 15% YoY to $35 billion. But Microsoft wasn’t totally immune from financial troubles related to Covid-19. Here’s three ways the pandemic did impact the business. Bing and LinkedIn took a hit Microsoft experienced a “significant reduction” in ad spending, which affected…
Ep 113: U Up?
What’s Going On Here? Facebook reported higher-than-expected first-quarter revenue. What Does This Mean? With the world forced to stay home, there wasn’t much else to do but scroll through Facebook and watch Instagram Live’s quarantine concerts. That helped the tech giant clock 10% more monthly active users. Still, it hadn’t factored in just how much…
Ep 112: Working It From Home
What’s Going On Here? Microsoft’s reported higher-than-expected quarterly revenue and profit. What Does This Mean? Back in February, Microsoft warned investors its personal computing division (Windows, Surface laptops, and Xbox consoles, …) – would miss sales targets after Chinese factories shut down in response to coronavirus. But Microsoft’s cloud computing business grew revenue by a better-than-expected…
Journal report 20: Today-I-learn about Accretion/Dilution Analysis (3)
Building a full-scale model Assumptions (purchase price, sources, and uses) IS CF BS adjustments Depreciation schedule Operating working capital schedule BS projection Debt schedule 3. CF CF from operations In the CF from operations, we conservatively lean toward consolidating both the acquirer’s and target’s line items with the understanding that operations are core to the…
Journal Report 19: Verizon’s $500 Million Acquisition of BlueJeans
Overview of the deal Acquirer: Verizon Business – a telecommunications giant (2nd place after AT&T) Veriozon is an American telecommunications conglomerate: providing consumer-focused wireless communications services through Verizon Consumer Group offering video & data services & networking & security solutions through Verizon Business Group Basic numbers No. of employees: 135,500 Market cap: $253.94 bil (Dec…
Journal Report 18: How to Kickstart and Scale a Marketplace Business (2) – Phase 1: 🐣 Crack the Chicken-and-Egg Problem
Once a marketplace business is operating, supply happily serves demand. However, when your marketplace is just getting started, you must convince one side of the marketplace to commit before the other side. This is known as the “chicken-and-egg problem”, and solving it is one of the biggest barriers to launching a marketplace business. Below are…
Journal Report 17: How to Kickstart and Scale a Marketplace Business (1)
How to Kickstart and Scale a Marketplace Business Phase 1: Crack the chicken-and-egg problem Part 1: Constrain the marketplace Part 2: Decide which side of the marketplace to concentrate on Part 3: Drive initial supply Part 4: Drive initial demand Phase 2: Scale your marketplace Part 1: Determine if you are supply or demand constrained…
Ep 111: All Scrude Up
What’s Going On Here? The price of a barrel of oil crashed to its lowest price since 1986 – and the reason might well be found in the “futures” market. What Does This Mean? The 34-year low is partly down to: the same falling oil demand that’s caused issues for weeks: falling demand that…
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