Herman Chan discusses FDIC's plan for refilling deposit insurance funds. Dr. Helen Sabzevari talks about drug development for weight loss, cancer, and health treatments. Brian Stelter discusses his book 'Network of Lies.' Laura Martin shares her bearish outlook on Meta stock, Apple, and Disney.
Disney's content business is facing challenges from platforms like TikTok, impacting its long-term growth potential.
Meta (formerly Facebook) needs to address concerns about its competitive position and regulatory challenges to ensure sustained growth in the metaverse and AI focus.
Deep dives
Disney's Focus on Parks and Uncertainty in Content Business
Disney's CEO, Bob Iger, is investing heavily in the growth of the Parks business, which has proven its success. However, there are concerns about the growth of the content business, as competition from platforms like TikTok is eroding Disney's user-generated content base. Additionally, regulatory challenges and increased spending in areas like generative AI are impacting the company's outlook. Wall Street is uncertain about the long-term growth potential of Disney's content business.
Uncertainty Surrounding ESPN and Potential Partnerships
There is speculation about the future of ESPN and its partnerships, as CEO Bob Iger looks for companies that can enhance distribution and provide marketing support. The NBA rights are particularly relevant, as they may go up in cost by $4 billion, potentially impacting Disney's cash flow. It is possible that partnerships with sports leagues like the NBA could help ESPN maintain its position in the market, but there are risks associated with rising costs and competition from platforms like TikTok.
Analysis of Meta's Performance and Challenges
Meta, formerly Facebook, has experienced strong stock performance, driven by positive revenue growth and cost-cutting measures. However, there are concerns about the company's competitive position and regulatory challenges. User-generated content is shifting towards platforms like TikTok, impacting Meta's core business. Furthermore, Meta's focus on the metaverse and generative AI brings additional costs and challenges. In the long term, Meta needs to address these fundamental issues to ensure sustained growth.
Media Landscape and the Need for Consolidation
The media industry is experiencing significant changes, with traditional media companies potentially becoming too small to compete with tech giants like Amazon and Google. Consolidation may be necessary to create global distribution powerhouses. However, regulatory hurdles and the challenges of acquiring media assets make this a complex undertaking. Mid-sized media companies may need to shrink their operations, increase dividends, and become value plays, as growth in the industry is becoming increasingly challenging.
Herman Chan, Senior Analyst: US Regional Banks & Fintech with Bloomberg Intelligence, joins to discuss the FDIC set to approve a plan for refilling deposit insurance funds, and how big banks will be saddled with the tab. Dr. Helen Sabzevari, CEO of Precigen (NASDAQ: PGEN), joins to discuss drug development, including weight loss drug development, cancer, and other health treatments. Brian Stelter, special correspondent for Vanity Fair, former CNN correspondent, and producer on Apple TV’s “The Morning Show,” discusses his book “Network of Lies." Laura Martin, Managing Director at Needham, joins to discuss her contrarian bearish take on Meta stock, outlook for Apple, and outlook for Disney. Hosted by Paul Sweeney and Matt Miller.