Latest news with #Mahaney
CNBC
3 days ago
- Business
- CNBC
Evercore ISI hikes Netflix price target, says stock can march to new heights thanks to live events
Netflix can continue to march higher even as the stock already trades at record levels, according to Evercore ISI. Analyst Mark Mahaney maintained his outperform rating on the streaming giant and raised his price target by $200 to $1,350, which suggests nearly 14% potential upside ahead. Shares hit an all-time high this week, bringing their year-to-date gains to nearly 32%. Mahaney's bullish sentiment on Netflix comes after Evercore ISI ran its 54th quarterly U.S. survey and 15th annual UK survey, which received roughly 1,300 respondents in each market. From the survey results, Mahaney observed live events to be a key driver for Netflix. A record high of 53% of U.S. respondents said they have watched live events on Netflix, and 50% said they would be likelier to keep their subscription if more live events were included. "Increasing adoption and attraction of Live Events is providing early evidence of 'Bundle Power,'" Mahaney wrote in a Thursday note to clients. "Remember how much you paid for your cable bundle? We don't either, but we guarantee it was a lot more than the $24.99 Netflix currently offers for its Premium Plan. And as Netflix continues to enlarge its content offering – adding in Live Events for e.g. – its ability to raise prices will increase." NFLX 1Y mountain Netflix stock performance. Mahaney added that the survey results pointed to greater satisfaction levels from Netflix subscribers, and flat viewing trends for the second quarter while other streaming peers saw modest decline. Netflix was also a favorite for its content among the respondents. It ranked the best in terms of content quality according to more than 40% of U.S. respondents and 67% of UK respondents, keeping its competitive leadership over Amazon Prime Video and Disney's Hulu, Mahaney noted. Netflix's bet on live events has so far paid off. The company added a record 19 million subscribers globally in the fourth quarter, aided by its streaming of a highly-anticipated boxing match between Jake Paul and Mike Tyson —which became the most-streamed sporting event in history — as well as two NFL games on Christmas Day. Netflix boasted strong revenue growth during the first quarter of 2025, even after hiking its subscription prices for its three plans. The company is targeting a $1 trillion market capitalization and doubling its revenue by 2030. Evercore ISI is one of several Wall Street firms that remain bullish on the stock. Of the 55 analysts covering Netflix, 37 rate it a strong buy or buy, according to LSEG.
Business Insider
29-04-2025
- Business
- Business Insider
Elon Musk's Starlink mints money and has become a geopolitical power tool. No wonder Amazon is splurging on satellites.
When Andy Jassy went on a post-COVID cost cutting spree, eliminating roughly 27,000 employees, I thought most of Amazon's risky moonshot projects would also get the chop. So, when Jassy didn't cut Project Kuiper, a bold plan to launch a constellation of internet-beaming satellites, I scratched my head. Of all Amazon's moonshots, this may be the most expensive. If the CEO wanted to quickly slash costs, nixing Kuiper would have been the play. Instead, Kuiper survived the purge — while others, like an AR headset for business meetings, were cut — and Amazon plowed ahead. That decision underscores two key drivers: massive profit potential and a desire for strategic independence from Elon Musk. The lure of Starlink-sized profit If there's any blueprint for Kuiper's financial upside, it's Starlink. SpaceX's satellite internet venture has rocketed ahead in recent years. Evercore ISI analyst Mark Mahaney recently shared estimates of Starlink's financials, citing Chris Quilty, an expert from the satellite and space industry. These are pretty mind-blowing numbers, especially for a service that was initially ridiculed as impractical and expensive when Musk announced it a decade ago: $12.3 billion in projected revenue for the 2025 fiscal year, up 57% from a year earlier. 7.6 million subscriptions, an increase of 3 million subs from 2024. $7.5 billion in earnings, before interest, tax, depreciation, and amortization, a common measure of profitability known as EBITDA. 61% EBITDA margin. And for those who dislike accounting gymnastics: $2 billion of free cash flow. Quilty also forecast that, at maturity, Starlink could reach 80% EBITDA margins. "This suggests Kuiper could be a highly attractive business for Amazon at scale," ISI Evercore's Mahaney wrote in a recent note to investors. Recent investment rounds valued SpaceX at about $350 billion. Amazon has thin margins in its core e-commerce business, so Kuiper is a potential way to diversify into a more lucrative field. Mahaney noted that Kuiper is going after a $1 trillion total addressable market in terrestrial telecom and broadband services. Given that Amazon typically competes in ultra-low-margin sectors like e-commerce, the prospect of an 80% margin business is probably too good to ignore. If that's not enough of an incentive, here's another: There's only so much satellite communication spectrum up in space, especially the low-earth orbit areas where Starlink dominates. Because of this, Quilty reckons Kuiper is not only the closest challenger to Starlink — it will likely be the only significant competitor. Despite delays, Kuiper's launch of 27 satellites this week is a tangible step toward monetization. Amazon has also announced plans to sell Kuiper terminals for under $400, aiming for tens of millions of units, and is working toward a commercial service. A need for autonomy Beyond these tantalizing profits, I think there's another strategic motive driving Amazon's satellite ambitions: It doesn't want to depend on Musk. Starlink's ability to beam internet service around the world, combined with SpaceX's unmatched launch capability, has made this company a potent geopolitical tool. After Russia invaded Ukraine, Starlink service to this war-torn area became so strategically important that the Pentagon had to negotiate directly with Musk to maintain internet communications there. This is the type of power that catches the attention of Big Tech companies that rely on the internet to reach customers. I can imagine the prospect of going through Elon to reach users might make most tech CEOs queasy. Reliable and strong internet access is especially important for Amazon. The company's cloud business, AWS, is the backbone of its profits, and it controls a growing share of global digital infrastructure. Relying on Starlink for some broadband access could be a major risk. The same Starlink terminals that provide residential internet also serve military and enterprise customers, including some that Amazon might wish to court. Amazon founder Jeff Bezos has been clear on this. While acknowledging Starlink's success, he has emphasized that demand for internet access is insatiable and leaves room for multiple winners. But underneath the diplomacy is a business logic that's impossible to ignore: Amazon needs its own highway to the cloud. Kuiper offers that. Moreover, by owning the infrastructure from space to server, Amazon can better control quality, pricing, and reach — especially in areas where terrestrial internet is unreliable. It also reduces geopolitical and commercial dependencies on third-party providers who might not share Amazon's priorities. Project Kuiper is far from a vanity play. It's a strategic moonshot aimed squarely at two objectives: unlocking a high-margin business with billion-dollar upside and insulating Amazon from dependence on an unpredictable rival. As Starlink proves the model and Amazon begins scaling Kuiper's constellation, this once-head-scratching bet is starting to look like a savvy move.
Yahoo
04-04-2025
- Business
- Yahoo
Wall Street now hates these 10 stocks because of Trump tariffs
Wall Street is wasting no time saying which stocks it really hates in the era of bruising Trump tariffs. It's hard to fault the quick change in sentiment. Markets braced for another day of heavy selling on Friday. At the time of this writing, Dow Jones Industrial Average futures (YM=F) were sinking 1,400 points as China hit back with fresh 34% tariffs on the US and added 11 companies to its unreliable list. Major sell-offs in top names such as Apple (AAPL), Nvidia (NVDA), and Palantir (PLTR) persisted. "It's impossible to pick a stock right now," remarked one Wall Street source to me by email. Yahoo Finance searched the Wall Street community's plethora of research notes from the past 48 hours to find a few less obvious names that Wall Street dislikes post "Liberation Day." There were many to choose from, and a lot of them were obvious (see Apple above). But we erred on the side of highlighting less obvious names that may also have a direct tie-in with stocks you currently own. The collective theme with these stocks is that Trump's new tariffs could directly hammer sales, profits, and valuation multiples. The tariffs could trigger a recession too. Read more: How to protect your money during economic turmoil, stock market volatility Hated Stock: Wayfair (W) Other Wall Street Insights on Yahoo Finance It's hard to be bullish on an online home furnishings marketplace that sells products mostly sourced China. Arounian slashed his rating on Wayfair to Neutral/High Risk in a Friday morning note. "We downgrade Wayfair to Neutral/High Risk and lower our price target to $28 from $58 on the potential disruption from reciprocal tariffs and increased macro uncertainty to the home goods end market," Arounian said. "We continue to believe management has done well in controlling what is in its control (cutting costs to support EBITDA growth, refinancing its debt) and we like the long-term fundamental opportunity for Wayfair to continue taking share within the home goods category and believe its path to 10% adjusted EBITDA margins would be intact in a more normalized macro (ex. reciprocal tariffs). However, the macro headwinds are too much to ignore at this point and we see the risk/reward balanced here." Hated Stocks: Shopify (SHOP), Airbnb (ABNB), Booking Holdings (BKNG), eBay (EBAY), Etsy (ETSY), Trade Desk (TTD), Snap (SNAP), Roku (ROKU) Other Wall Street Insights on Yahoo Finance Mahaney defended his top 2025 picks, Uber (UBER) and Amazon (AMZN), in a note on Friday. "First, the Net sector has limited direct exposure to tariff risk," Mahaney said. But he acknowledges recession risk makes it hard to warm up to a host of internet names. "On the flip side, the Net companies with the most recession risk would be companies with significant exposure to discretionary spending (SHOP, ABNB, BKNG, EXPE, EBAY, ETSY), as well as companies with significant exposure to Brand Advertising (TTD, SNAP, ROKU)," Mahaney added. Hated Stock: Best Buy (BBY) Other Wall Street Insights on Yahoo Finance Citi analyst Steven Zaccone slashed his rating on Best Buy on Thursday to Neutral from Buy. Similar to the thesis on Wayfair, electronics retailer Best Buy sells merchandise highly exposed to the new global trade war. "We believe the tech replacement cycle, new AI innovation, and margin execution are positive attributes to the story, but the external backdrop is making for a more challenging environment to execute. We see increasing same-store sales risk in the face of consumer uncertainty as well as higher promotional risk from tariffs," Zaccone said. Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email Sign in to access your portfolio
Yahoo
27-03-2025
- Business
- Yahoo
Is Amazon's Valuation 'More Attractive' Than Ever Before? Analyst Says It's Time To 'Aggressively' Buy His 'Favorite' Stock
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Evercore ISI's Mark Mahaney sees upside for Inc (NASDAQ:AMZN) from current levels, and he has a history of being right about the trajectory of the tech stock. What Happened: Tuesday on CNBC's 'Squawk Box,' Mahaney said Amazon is his top stock to own right now. 'One of my favorite stocks, actually my single favorite stock right here, is Amazon,' Mahaney said. Tariffs and the impacts of the Trump administration's ongoing trade war have weighed on big tech names and broader markets. Amazon shares are down about 7% year-to-date but have shown signs of bottoming in recent weeks. Don't Miss: Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Last Chance to get 4,000 of its pre-IPO shares for just $0.26/share! Mahaney believes Amazon is better positioned to deal with potential negative impacts of tariffs than some of the other big tech names. He expects the company to eat some of the tariffs, which will hurt profitability, but also pass through some of the costs to consumers. 'As long as the tariffs are highly targeted and maybe modest in scope, there's less risk for Amazon. And then there are other parts of the story that I find particularly interesting,' Mahaney said. The Evercore ISI analyst highlighted Amazon's strong Amazon Web Services (AWS) growth outlook and planned new product rollouts including Project Kuiper and Amazon Alexa+. to decide which one is right for you. The company said last quarter that AWS sales increased 19% year-over-year and helped generate $10.6 billion in operating income. Amazon also guided for first-quarter net sales growth of 5% to 9% year-over-year. 'So if you've got new product lines rolling out and potential for parts of the core business to accelerate and the stock has pulled back a lot — Amazon at 25-times earnings is more attractive than pretty much any time I've ever seen it — then that's when you want to get in, leg into that stock aggressively, and I think that point it here with Amazon,' Mahaney said. Mahaney has been a longtime bull on Amazon — and he's been right before. With Amazon shares trading around $140 in 2023, he predicted the stock would rise above $200 by the end of 2024 driven by accelerating growth from AI efficiencies. Amazon closed out 2024 trading around $220 per share, according to Benzinga Pro. Check This Out: Arrived allows individuals to invest in shares of rental properties for as little as $100, providing the potential for monthly rental income and long-term appreciation without the hassles of being a landlord. With over $1 million in dividends paid out last quarter and a growing selection of properties across various markets, Arrived offers an attractive alternative for investors seeking to build a diversified real estate portfolio. In October 2024, Arrived sold The Centennial, achieving a total return of 34.7% (11.2% average annual returns) for investors. Arrived aims to continue delivering similar value across our portfolio through careful market selection, attentive property management, and thoughtful timing in sales. Looking for fractional real estate investment opportunities? The Benzinga Real Estate Screener features the latest offerings. Photo: courtesy of Amazon. This article Is Amazon's Valuation 'More Attractive' Than Ever Before? Analyst Says It's Time To 'Aggressively' Buy His 'Favorite' Stock originally appeared on Sign in to access your portfolio
Yahoo
26-03-2025
- Business
- Yahoo
Scripps Eliminates Leader of Emerging Talent Position
Count Chip Mahaney as one more victim of the Scripp's layoff machine. Mahaney was the Scripps' Emerging Talent Leader for the station group. He posted news on social media that his position had been eliminated. 'BREAKING: I've had an amazing 16 year run at Scripps, leading journalism and broadcast/digital content at high levels and helping countless numbers of journalists grow their careers. Unfortunately, my position as Scripps' Emerging Talent Leader has been eliminated,' he wrote. 'While I'm sad to leave Scripps in a few weeks, I'm super proud of the work I've done for the company, especially in helping hundreds of others get ahead. That help remains available, anytime. I'll always help you.' On his LinkedIn, his job description was to 'grow Scripps by mentoring, coaching, recruiting and hiring the next generation of journalists and media professionals.' Mahaney had worked at Scripps since 2008. In that time he worked his way up to news director at WCPO in Cincinnati until moving to Billings, Montana to be the interim ND at KTVQ in 2021.
