What’s going on? Peloton (American exercise equipment and media company) reported worse-than-expected results, as the latest fitness fad once again ran out of puff. What does this mean? As gyms re-open in Q2, at-home exercise equipment became less attractive and Peloton’s revenue growth dropped dramatically. Along with an expensive treadmill recall, Peloton posted a bigger-than-expected loss….
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Ep 162: The Fed’s announcement of slowing the bond-buying program and its effects on the economy
What’s going on? The Fed indicated that it’ll start tapering (slowing) its bond-buying program before the end of 2021 – just like investors expected. What does this mean? In 2020, the Fed cut interest rates to near-0% and started buying up $120b worth of bonds/ month. That flood of cheap money actually helped the economy stay alive…
Ep 161: Tencent’s fluent update and the Chinese technology landscape
What’s going on? Tencent (Chinese internet giant) delivered fluent earnings, but stumbled by sales growth. What does this mean? Tencent’s revenue was up 20% yoy last quarter, which is not bad, but still its smallest rise since 2019. One reason is the Chinese government’s expanding tech crackdown, which has likely hit Tencent’s mobile gaming empire. A $3b gain on…
Ep 160: Deere’s promising update and the agriculture landscape
What’s going on? Deere & Co. posted better-than-expected earnings, as its agricultural equipment became a must-have for the industry. What does this mean? Farmers have been spending more on its machinery to meet demand, which brought Deere’s quarterly revenue and profit ahead of expectations by 11% and 16% respectively. And while that boom has started…
Ep 159: Iron ore price drop and the global economy
What’s going on? Iron ore price dropped to a 4-month low, as China decided to go green. What does this mean? Iron ore is a major component of steel, which is a major component of cars, buildings, and things that helps the world stay still. The recent price drop of iron ore might be largely…
Ep 158: Robinhood’s concerning update and the crypto market
What’s going on? Robinhood posted a disappointing first earnings update since its IPO. What does this mean? In Q1/2021, Robinhood’s bank balance might have been boosted by meme stocks (like GameStop and AMC Entertainment). In Q2/2021, however, Robinhood’s revenue surged 131% thanks to crypto trading making up around 51%, which was a huge jump from 17% in…
Ep 157: BHP’s close exit from the oil and gas business and the call from Mother Nature
What’s going on? BHP (the world’s most valuable mining company) is close to selling its oil and gas business. What does this mean? While BHP’s main business is extracting raw copper and iron ore, oil and gas business also represented 9% of its total revenue last year. However, that activity is still classified as “non-core”….
Ep 156: VNG’s rumor of an IPO in the US
What’s going on? Vietnam’s VNG Corp is considering going public in the US through SPAC. Founded in 2004 as a gaming firm, VNG’s products reach over 80m users. Its gaming arm develops and publishes its own titles and local versions of international hits such as PUBG Mobile. It also runs messaging app Zalo, e-wallet ZaloPay,…
Ep 155: Disney’s beautiful quarterly result and the streaming & outdoor services outlook
What’s going on? Disney announced stronger-than-expected 2Q/2021 earnings. What does this mean? Disney’s theme parks, experiences, and products segment speaks have been the main drivers that return profitability to Disney for the first time since the pandemic began. Most of the segment’s profit came from people buying merchandise. As Disneylands is getting busier again, it…
Journal Report 32: ThaiBev – Sabeco acquisition (4): Divestment strategy
The analysis of this deal includes 4 parts: (1) Legal structure, (2) Capital structure, (3) Sabeco valuation, and (4) Divestment strategy Sabeco’s perfomance 3 years after the transaction Revenue Sabeco’s revenue increased by 5.1% in 2018 and 5.4% in 2019, but there was a sharp decline of 26.2% in 2020. This decrease largely came from:…
with HT 