10 Feb REPORTING SEASON – A MIXED BAG; A WILD RIDE
Welcome to this week’s business and media intelligence update.
REPORTING SEASON – A MIXED BAG
We are into the second week of reporting season and the news is good – and not so good.
The big banks appear to be doing fine – as they always do – continuing to make healthy profits, although there are warnings of challenges ahead, especially increased competition and margin reductions.
Those retailers who have reported in recent days confirmed what we always thought: online retail continues to grow but those retailers that also have a brick and mortar presence are struggling due primarily to pandemic-related lockdowns.
In the energy sector, AGL announced during its results presentation yesterday that the company is considering bringing forward the closure of its two main coal-powered generators, a move that is likely to upset Canberra.
And across the board, business leaders have complained about supply chain issues and skill shortages.
A WILD RIDE
And as things slowly get back to normal here and overseas, some of the global companies whose products and services became household essentials during pandemic lockdowns are facing challenges, too.
Take Peloton.
It seems the company has misjudged the demand for exercising at home fuelled by the global pandemic.
With individuals now returning to gyms, Peloton is paying the price for its ambitious expansion plans and over-investment.
The result has not been pretty, with the company’s share price sinking more than 70 per cent in the past three months.
In response, Peloton announced it is replacing its Chief Executive John Foley – who has led the company for its entire 10-year existence – and cutting almost 3,000 jobs.
NETFLIX NO CHILL
And then there is Netflix …
At the end of last month, the streaming service’s share price tumbled on the back of forecasts that subscriber growth would significantly slow down in early 2022. It knocked A$74 billion off Netflix’s valuation in one day.
So, has the boom in stay-at-home stocks finally ended?
Not so fast. Earlier this week Oscar came to the golden rescue with Netflix up for 27 nominations – the most of any studio or distributor.
The Power of the Dog alone received 12 nominations, more than any other film in 2022.
Another movie to add to your watchlist this weekend.
DRESSED TO UNIMPRESS
Also, on the downward trajectory? The general consensus over how the world’s richest man dresses.
Jeff Bezos’ decision to wear a bright blue flight suit with a beige cowboy hat and boots for his space debut last year had the fashion police up in arms.
The problem, according to opinion writer Robert Armstrong, in The Financial Times, is Bezos’ desire to stand out rather than camouflage, like his super-rich counterparts Elon Musk and Warren Buffet.
Armstrong suggests Bezos stops trying so hard and instead, invest in a good style consultant.
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