Nexflix is decade’s best stock

Netflix top stock of the decade

Looking back on the decade, Netflix has won the prize of best performing stock, increasing 4,000%. Subscriber growth went from 12 million who were receiving CDs in the mail, to 158 million subscribers to streaming services. The company divides the world into four regions. After North America, the biggest region is Europe/Middle East/Africa with 47.4 million subscribers, then Latin America with 29.4 million. AsiaPac follows at 14.5 million. CNBC

dis-rup-shun: Do you continue to back the stock of a company with razor thin margins that doesn’t consistently make a profit, is being chased by Disney, AT&T and many other companies with deep pockets? The company’s growth is in international markets where competition is far less, but winning this game requires massive spending. This disruptor has been highly valued for completely changing the video market, but, like another game changer called Uber, will the demand for profits sink its high price? 

China helps finance Tesla

Chinese investors have agreed to back Tesla’s Shanghai-based manufacturing plant with a $1.4 billion loan that will, in part, roll over a prior, smaller loan. Tesla broke ground on the plant in January of this year and expects to produce 1000 model S cars per week by end of this year. CNBC

dis-rup-shun: It seems that Musk did not get the trade war memo, and, like Apple, is leading the charge for continued strong trade relations with China. Such big deals will likely keep the trade war political and prevent walls from being built between the economies. Tesla has what China wants — innovative, stylish cars that don’t pollute. Perhaps Musk can lead the way to increasing the number of global ventures that China will back.

Music embraces big data

As we know, the music industry is on a rebound from decimation by digital download. Gone are the talent scouts and record label promoters, replaced by data analysts who study trends on streaming music sites such as Spotify. By analyzing what’s hot, music producers can predict which artists will sell. Artists, by analyzing data, are able to determine where and with what they will become popular. The likely result is more homogeneity in music, making it tougher for off beat artists to be discovered. Wired

dis-rup-shun: This brings up the discussion, made popular a decade ago by Chris Anderson’s book, The Long Tail, of the value of non-popular content. Digital access makes it very inexpensive to find and enjoy the unusual, less popular books, movies and music. Yet, in the digital age, data analytics helps big business spend its resources finding or making the 20% of content that earns 80% of the revenues. This suggests a streaming service dedicated to the fringe artists, where lots of good stuff is less commercialized, would be interesting to those of us who like fringe stuff.

In-home manicure machine

Coral is a company founded by a former Dolby executive who has received $4.3 million to create an in home manicure machine. Put your finger in a hole in the machine, and out comes a completed, painted nail. Tech Crunch

dis-rup-shun: The salon experience seems, from an observer’s perspective, to be part ritual — going somewhere and spending a few minutes being pampered. While many people don’t have the time to go to a salon but want nails to look nice, this may be a better solution than DIY manicures. Peloton has brought the community workout experience home, and massive multi-player games gives one a sense of community experience at home. Coral likely needs to make its machine deliver more of an experience — perhaps by playing soothing music or brewing tea while it gives its auto-manicure.

 

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