(Robyn Beck/Getty Images) |
Disney's diversified streaming empire |
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Rihanna and Katy Perry didn't go to the Met Gala this year, but AI-generated images of what they might've worn went viral (even fooling Perry's mom). Get ready for "who wore it best, AI edition." The Dow eked out a gain yesterday for its fifth straight sesh in the green, its longest streak of the year. |
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California un-venture… Disney got the equivalent of a "C" from investors after it narrowly missed revenue estimates and posted a small loss in its most recent quarter. The stock fell 10% yesterday. Disney's fourth straight disappointing quarter came as cable and box-office revenue sagged. Parks and experiences were a bright spot with strong growth as Mickey lovers kept splurging on rides. But Disney's counting on people sitting on their couches too: |
- Plus: Disney+ and Hulu combined were profitable last quarter for the first time, with Disney+ adding 6M+ subs for a total of 118M. But overall the streaming unit lost $18M because of ESPN+. Still, it's a big improvement from the $659M it lost last year.
- Bright side: Disney expects all its streamers to be profitable by fall. It recently won its boardroom battle against activist investor Nelson Peltz, and the pressure to overhaul its biz may have lit a fire under its caboose.
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Once upon a tile… Disney's expanding its sports offerings and rearranging its streaming suite as it pushes toward a profit. It plans to integrate Hulu and ESPN+ into Disney+ as clickable "tiles," which might encourage customers to bundle up. Disney's also working on a streaming equivalent of its ESPN TV channel (different from ESPN+). If that wasn't enough: Disney teamed up with Fox and Warner Bros. Discovery on a live-sports mega-streaming bundle (which'll cover over half of all US sports rights). ETA: this fall, although it's facing an antitrust lawsuit. |
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Disney's got a three-legged streaming stool… If content is what wins the streaming race, Disney has two legs up on the competition. With Disney+, Hulu, and ESPN, the House of Mouse streams family favorites like "The Little Mermaid," grownup series like "Shōgun," and the main reason a lot of Americans pay for cable: sports. CEO Bob Iger's plan to improve the quality of content (ahem: Marvel) could be the last bit of magic Disney needs. |
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So hot right now… As commercial real estate struggles to adjust to a remote-work reality, one sector of that market is defying trends and popping off. Demand for data centers — those hulking homes of the servers that support the internet — has boomed. Real-estate giant Jones Lang LaSalle said the dynamite demand has come from corporates chasing AI, a tech that needs IRL square footage to train and run. |
- BuildAI: US data-center space soared 26% last year, with record construction across the country. And the price for available space is still rising.
- DrainAI: While companies are trying to use renewable energy to power operations, lots of data centers rely on nonrenewable sources like natural gas, coal, and nuclear power. New "hyperscale" locations can use as much electricity as Seattle.
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For rent… all of downtown, plus a warehouse or two. Commercial real estate includes office buildings, warehouses, malls, and (yes) data centers. But while demand for server farms is thriving, the rest of the market isn't doing so hot. About a fifth of US office space was vacant at the end of last year, with cities like Houston and Cincinnati seeing vacancy rates as high as 25%. US warehouse vacancy rates have also risen as ecomm cools. |
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| Markets aren't monoliths… Booming AI-vestments don't just benefit tech companies; they can spill over into other industries like real estate. In the same way, the billions poured into AI by corporates like Microsoft, Amazon, and Alphabet could spill over into the energy markets. Natural gas is expected to see an outsized benefit, with Goldman Sachs estimating that it'll supply 60% of power demand growth for data centers and AI. |
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- Discontinue: Panera said it would stop selling "Charged Sips," its caffeinated lemonades at the center of wrongful-death lawsuits brought by the families of two people who they say died of cardiac arrest after drinking the bevs.
- ByteBack: TikTok's Chinese parent won't relinquish its viral app without a fight. ByteDance sued in US federal court to block a recently passed law that would ban TikTok in the US unless ByteDance separates from it.
- Chipper: Apple talked up its new iPads, including the $1K iPad Pro powered by the faster M4 chip. The tech co is also reportedly working on its own AI data-center server chip, appeasing AI-hungry investors.
- Laps: After 13 straight quarters of losses, layoffs, and a CEO ousting, spin-bike co Peloton is reportedly being pursued by private-equity firms for a buyout. Peloton has lost $45B+ in market cap since 2021.
- JoyCon: Nintendo said it would announce its Switch-cessor by next spring as it looks to make up for weaker gaming guidance. The Mario master sold nearly 16M Switch consoles in the 12 months up to March, topping estimates.
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| - Olympic torch arrives in France
- Blues Hall of Fame induction ceremony
- National Bike & Roll to School Day
- Earnings expected from Uber, Airbnb, Fox Corp., News Corp., AB InBev, and Toyota
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Authors of this Snacks own shares of: Alphabet, Amazon, Apple, Disney, Microsoft, and Uber |
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