Itâs our seventh âExtraGainzâ! Play along with us and remember weâre not professionals. This is not investing advice. Itâs our attempt to make you a little smarter about financial, cryptocurrency and betting markets while having a good time.Â
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Love this STONK you will...
Do you like Baby Yoda, Mickey Mouse, Marvel, Pixar, NFL Football and Hamilton? If you answered yes, like everyone else, you wonât be surprised about this weekâs stock.Â
The Walt Disney Company, commonly referred to as just Disney ($DIS), is a multinational mass media and entertainment company run out of Burbank, California. The company recently reported earnings with some interesting data.Â
Letâs talk about streaming! This product is the future for the company and Disney showed an increase of subscriber growth to 174 million on their platforms Disney+, ESPN+, and Hulu.Â
All good things, right? Wrong. The earnings also revealed that Disney+ saw higher costs due to increases in production, marketing, and technology. The average revenue per user (ARPU) declined to $4.16 from $4.62 during the quarter. This datapoint initially caused the stock to fall before rebounding.
So, is this an actual problem or just a bump in the road?
Letâs dive in: the launch of Disney+ in 2019 showed that the House of Mouse was serious about building a streaming juggernaut. The stock responded accordingly, soaring from below $100/share to over $150. Currently the stock sits at $174, significantly off the 52-week highs near $205.
The stockâs recent fall was mostly caused by a drop in Disneyâs theme park attendance and revenue due to the Covid-19 pandemic. The Delta variant may be a concern, but thatâs in the short-term. Most analysts believe that this sector of the business will rebound quickly in 2022.
AND if youâre concerned about the ARPU, donât be.
Disneyâs production costs are due to a push for subscriber growth in the India market. The service is streamed under the Disney+ Hotstar brand and its subscriber base grew 66% in the country this past quarter. This growth was supported by the aforementioned production, marketing and technology costs. Increases in viewership for the company in India should be a positive. Any time you can grow in a country of nearly 1.4 billion people, itâs a good thing.Â
Finally, Disney+ already has over 100M subscribers and their bundle of Disney+, Hulu and ESPN+ is set to surpass Netflix by 2024. All that and streaming is only Disneyâs third largest business behind Network TV, Theme Parks and Cruises.Â
Lâs Bet: Iâm not a parent or Star Wars/Marvel guy but I hear that if you have kids you MUST buy Disney+. I believe in this streaming service in the long-term. Itâs going to be at $250+ by the middle of next year.Â
Jâs Bet: I bought 100 shares back in 2019 prior to the Disney+ launch at $124/Share and I mention this not to humble brag but to make it clear that I believe Disney+ is a transformational product and this stock has room to grow to $225+ per share over the next 2-4 years as a great long-term buy.
Get Hyped: (Meme Stock Mania)
HypeEquity is tracking a ton of social sentiment around Tesla stock. The electric automaker just had itâs âA.I. Dayâ where they debuted a robot and a high speed computer called âDojoâ. The humanoid robot will be 5 feet 8 inches tall, weigh 125 pounds, and be able to lift 150 pounds. According to the presentation, the robot will be âdesigned to mimic the way humans think.â Bizarre announcements aside, the stock has fallen significantly from its 52 week high of $900, finishing the week at approximately $680. But some are worried that this stock could fall in the near-term. Teslaâs current market cap valuation implies that $TSLA will be the worldâs biggest automaker by 2030. Thatâs going to be a tough task.Â
Lâs Bet:Â LOVE Tesla and the technology but the run-up of the stock could be problematic for investors in the near term. The stock could fall to $500 before running again to the $900 level.Â
WTF? (New Meme STONKS)
Hereâs a new one for you: Snowflake ($SNOW). The cloud computing company is based out of Bozeman, Montana (living the dream!) and had the biggest software IPO in history back in September of 2020. But it hasnât been all roses since that first day. After peaking near $430 a share back in December, the stock currently trades at $266. This was a surprise since the company enables data storage, processing, and analytic solutions. Itâs a SAAS company (Software As A Service) and traditionally theyâre winners on the markets (low cost, high profit businesses). Basically it's a modern company built for other modern internet-based companies. BUT that means it needs âbookingsâ, AKA a steady source of new clients in order to thrive. Why isnât this happening? Google is eating $SNOWâs lunch. A new paper from Cleveland Research is showing that Alphabetâs (Googleâs parent company) product BigQuery is hindering client signups.Â
Lâs Bet: Great note (Iâm paraphrasing) from the Motley Fool article listed above: âdonât worry that the company is âonlyâ doubling revenue, worry that the company wonât earn a profit before 2026.â
YOLO CRYPTO: (Sh*tcoins and More)
Just one short month ago Bitcoin ($BTC) was in free-fall. The cryptocurrency was trading right around the $30K mark. Four weeks later Bitcoin is set to break the $50K mark, a nearly 65% gain. Many are predicting that the benchmark crypto could be trading in the $55K range by the end of the weekend. This momentum comes after another massive hack stole $100 million in cryptocurrency in Japan this past week. Also, many are predicting stricter rules coming for the cryptocurrency industry in the next few months.Â
Lâs Bet: Thereâs true momentum here right now. The $BTC bulls are out and may push this thing to $100K. I have $1K bought at $12K price mark but wonât be investing any more.Â
DA HEDGE: (Make a Sports Bet you Coward)
Itâs coming to the end of August and sports are ramping up. We have College Football âWeek Zeroâ one short week away, NFL preseason in full swing, and MLB pennant races are firing on all cylinders. The AL East is definitely heating up and the Yankees are HOT! The odds have drastically changed since L took the Bronx Bombers back in July before the trade deadline at +750. Now the Yankees are only +370 to win the division, jumping the Red Sox who now sit at +670. The Rays remain the favorite at -240.Â
Lâs Bet: CapGainz Bets will track all of our sports bets so you can keep us accountable. Itâs been a winner so far for L but itâs much more rocky than investing! Look at this as âfun moneyâ. Do NOT plan your wealth strategy on sports betting.Â
Stream this Sh*t: (What to Watch)
Football is still in the preseason and rainy weather (on the East Coast at least) may keep you inside this weekend. That means you need something to watch. Hereâs an idea: check out âThe Chairâ on Netflix featuring Sarah Oh in a comedy about a college professor. Looking for something a little more eclectic? How about Adam Driver & Marion Cotillardâs new movie âAnnetteâ on Amazon Prime Video where their daughter is played by a wooden marionette doll (seriously). Is that too weird for you? Check out âNine Perfect Strangersâ on Hulu. Nicole Kidman stars in an adaption about wealthy white people with problems (how original). More info here.
FOMO: (Where to Travel)
The end of summer means itâs time to think about trips for the Fall. Want to look at the foliage and get your spooky on? Hereâs some great tips from CondĂ© Nast Traveler. The list spans domestic and international travel with highlights including Salem, Massachusetts (witches!), Cape Town, South Africa (spring in the Southern Hemisphere!), Albuquerque, New Mexico (hot air balloons!), and the Bavarian Alps in Germany (castles & Oktoberfest!!).Â
Youâre Getting Old: (TikTok Trends & More)
This was the week #BamaRush took over social media. Donât worry, we had no idea what this was either. This is the time of year freshman at the University of Alabama ârushâ sororities. But for the first time ever, their minute-by-minute exploits were documented on TikTok, leading to a new type of reality television which has taken over almost all platforms. Want to learn more about #BamaRush? Read this great NY Times explanation here.Â
Meme Roundup
Extra Musk
Canât Wait: (Bart Scott Voice -- Next Weekâs Agenda)
That wasnât so bad was it? Eventually weâll be doing five short-form âCapGainzâ newsletters Monday through Friday and one long-form âExtraGainzâ on Saturday morning. If you have any suggestions on what youâd like to read on âCapGainzâ reply directly to this email or hit us up at contactcapgainz@gmail.com. Weâre open to any ideas and sh*t talk you have for us.