Few quick notes on earnings recently, plus this great chart below (history doesn’t repeat but it rhymes). I’m in Wellington today and tomorrow (do you want to meet me? Flick me an email. I don’t bite — much. I have some “capacity”).
I love this one — what does that tell you! Price is what you pay value is what you get! Obviously the bulk of tech stocks strike me as more than rhyming with the “nifty 50” of the 60s/70s. Something to think about.
Mag 7 – dead. Boomer stocks — arise.
This too — taken from Diageo’s earnings. What’s selling good, kids? GUINNESS. Guinness is selling good.
Also, interestingly, the non alcoholic Guinness is performing very well with the Gen Z kids. Everything old is new again, etc. Cheers to that.
I also thought this was very interesting — Starbucks. Note those share repurchases — seems like a very prudent use of capital given the co’s material undervaluation (someone was telling me recently that there’s a disgusting amount of calories in those sugary Starbucks drinks — eat pray love; live love Lululemon).
Back to Diageo — note Tequlia, Rum and RTDs starting to slow down in a meaningful way. Also gin — I think the gin category, so popular with wine mums in their Herne Bay mansions a year or two ago, is basically at an impasse — it’s over.
Finally, Meta. Great results in the ad department (don’t let anyone tell you otherwise — Meta is an ad company). But look at how much Zuck spends on Reality Labs!
$4.4bn loss there, holy moly! The Metaverse sucks and will never be a thing. Thank goodness Zuck has so much advertising revenue to support his addiction to weirdly rendered 3D people!
Source post: Blackbull Research - Substack