Centralized ad-sales team
Once 21st Century Fox (FOX) completes the sale of its entertainment assets to Walt Disney (DIS) later this year, its name will change to Fox, and its focus will narrow to news and sports programming. In news and sports programming, advertising will be a key source of revenue for Fox. In an apparent attempt to bolster its competition for advertising dollars, Fox is reconfiguring its ad-sale strategy. According to a report from Variety, Fox News, Fox’s cable news outlet, has typically had its own advertising sales team, separate from other Fox properties. But once the deal with Disney is finalized, Fox will have a more centralized ad-sales team. In that new structure, ad sales at Fox News will be overseen by the same executive in charge of ad-sales at other Fox properties.
And Fox is not stopping there. Fox News has planned an event for ad buyers at its studio on March 13, underscoring Fox’s willingness to go all-out to court advertisers.
Fox’s ad revenue jumped 8.0%
Fox’s advertising revenue rose 8% YoY to $2.7 billion in its second quarter of fiscal 2019, the period ended in December. The company’s overall revenue increased 6.0% YoY to $8.5 billion and profit came in at $10.8 billion, translating into EPS of $5.81. The unusually huge quarterly profit was due to the sale of Fox’s stake in British broadcaster Sky. CBS (CBS) and Charter Communications (CHTR) reported EPS of $1.49 and $1.29, respectively, for the December quarter. Comcast (CMCSA) posted EPS of $0.55, while Dish Network (DISH) posted EPS of $0.64 for the December quarter.
Viacom (VIAB) (VIA) has completed the acquisition of Pluto TV.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.