Netflix, Zoom and more...

The Business And Finance News You Need To Know
Charlie Richardson
22 January 2021
Netflix, Zoom and more...

Indian summer... After China imposed it's latest security law on Hong Kong and the UK gave mobile operators until 2027 to rid UK phones of Huawei tech, India is seizing its moment. And Google is all-in. Pledging to invest $10bn into the infrastructure and companies of a country, where nearly half don't yet have access to the internet.

Now here's your weekly round-up of the business and finance news you need-to-know... | In a flash Netflix Binge Coming To A StandstillZooming In On Corporate CoughersSnack From Home Saves Pepsi Netflix Binge Coming To A Standstill | What happened and why... Living up to a big-billing is never easy... and Netflix (-10.57%) should know that by now. After a week of the stock rallying, the hot air came out of the stock as the streaming-giant shared an earnings update that fell short of investor dreams. Netflix pre-earnings build-up saw the company's valuation swell to $230bn but the after-hours update quickly put a dent in that, as the stock tumbled 10%. Now, the numbers... 😍 Lockdown Lovin'... Netflix added 10m subscribers in the second quarter, and that was well above estimates. So, what's the problem...🙃 Comedown Comin'... Netflix expects to only add 2.5m new subscribers in the July to September quarter, which would be its weakest showing in years. According to a Netflix graph, the company actually lost subscribers in June Packing it in... With people staying home to put a lid on coronavirus, Netflix has already added as many subscribers, this year, as it did in all of last year. The eye-hooking streamer has spent the past two years chasing the content game and executing it, with aplomb. And Netflix has fuelled and funded that content splurge with junk bonds from Wall Stree, in a bid to take down Hollywood. And it had expected to burn another $2.5bn of cash on content this year... Hitting pause... As filming sets were forced to close because of lockdown, content spending as dried up. The scary part... The production shutdown delayed the spending and Netflix is forecasting it will now break-even this year... and even be cashflow positive next. And in other news... Netflix also announced that Ted Sarandos - the guy splashing all that content cash - is going to share the top job alongside founder, Reed Hastings. Yep, Co-CEOs. | The Takeaway With cinemas either shut and slowly opening up across Europe, streaming movies have hoovered up the summer blockbusters. Extraction, starring Chris Hemsworth, drew 99m household eyes in just four weeks. For investors... the decision sits with whether becoming another utility in people's lives is an evolution they're happy with. If you didn't sign up for Netflix during the lockdown, the chances are... you never will. And with competition stiffer than ever, the lockdown growth spurt may have had investors a little over-excited... and taken their eye off the next stage of growth. Zooming In On Corporate Coughers | What happened and why... 🔎 Zooming in... on your life. Video-conferencing giant, Zoom (-11.27%), has teamed up with the tech-spec geeks at DTEN ME, to put a screen in your home that has all angles covered, literally. The details... Eyes on the prize... 3 wide-angle cameras on a 27-inch screen that won't miss a dis (with 8 microphones tuning into your every word).Zoom world... While Zoom has kept its hands clean of the hardware, the software is pre-loaded onto the screen. Welcome to Zoom life. In case, you weren't there already. 🔍 Zooming out... And Work from home is not going anywhere - well, we're not going anywhere. The global lockdown has accelerated a shift towards WFH and reportedly increased working time by 2 hours per day, per employee. No wonder your employer is playing it by ear. Hardware as a service... Since the pandemic landed, the adoption of remote comms has skyrocketed. The market is now expected to climb to become a $50 billion market by 2026 and Zoom wants more of it. | The Takeaway Corporate coughers... This is far from a play for the average Joe's pocket. At $600 dollars, Zoom is going after corporates with dough to throw at creating a WFH vibe that really works. Snack From Home Saves Pepsi | What happened and why... 🍿 Snack from home... Apparently, we're going snackers. In-between meal grazing and a sour-looking boom in bottled water fuelled a boost in PepsiCo (-3.60%) sales but the food & beverage giant still has issues. Work-snack balance is very much a WIP. Employees working from home keep going back to the packet... Snack attack... Products such as Tostitos tortilla chips, Doritos crisps, and Cracker Jack popcorn are in-demand as the group's Frito-Lay business popped 6% in organic sales.Morning glory... Fewer commutes to the office have also revived breakfast at home, pushing organic revenues at its Quaker Oats division up 23%. For the most part, the lockdown has been good to PepsiCo. The company has been chasing the food snacking game in recent years to escape the beverage shadow of Coca-Cola. But just like it's trendier cousin, Pepsi has felt the pinch as fizzy drink sales slipped 7% with the closure of bars, restaurants, and other venues. | The Takeaway Back to basics... Coronavirus has reignited flatlining giants such as Kraft, Unilever and it has been the same for PepsiCo. When panic set in, anything would do. There is also a renewed opportunity to carve out a share of the healthier snack market. As some of Pepsi's leaner snacks (Bare fruits, Sabea Hummus), saw sales gain and opportunities expand.