Weekly Notes #3

This weeks edition features interesting graphs from annual reports and investor presentation

Stocks in this episode:

American Tower (AMT), TakeTwo (TTWO), Microsoft (MSFT), Sony (SONY), Activision Blizzard (ATVI), Domino’s Pizza (DPZ), Universal Display (OLED), Kering (KER.PA), Pinterest (PINS) and Imperial Brands (IMBBY)

This week I was busy reading my annual reports and investor presentations of a multitude of companies. I’ve summarized the most interesting graphs for you here:

American Tower

American Tower talked about that 4G is to stay in the near future and more investments into 4G networks are expected.

The growth of mobile data. Indians use a lot more mobile data than Germans and the overall trend is for most countries to double or triple their mobile data usage within the next five years.

At the same time the rising interest rates can be seen on the P&L of American Tower.

Mobile Gaming Market

TakeTwo shared this interesting graph on their investor relations site. It is widely known, that mobile games are printing money. Yet it is always surprising to see how large the share of the mobile gaming market is compared to consoles like the PlayStation from Sony or the Xbox from Microsoft. On top of that, the development costs of mobile games are usually a fraction of Triple-A title like a Call of Duty (Activision Blizzard). It is no wonder, that companies like TakeTwo or Activision Blizzard are diversifying into the mobile gaming sector as well.

Pizza Charts

Domino’s Pizza has probably the best pie (excuse me, pizza) charts in all of the financial reports. I love it when companies manage to present their data in new and interesting ways compared to plain data rows.

Universal Display

Universal Display holds the patent on OLED and is by itself a very interesting company. If you own an OLED TV you know how much better it is compared to non-OLED screens. Most modern VR glasses also use OLED displays as well as many top notch smartphones. Universal Display had this cool quote in one of their recent reports.

Kering

The French luxury holding Kering sells more in Asia and Pacific (incl Japan) than in Western Europe and North America. As you can imagine, China makes up must of the Asia Pacific cohort.

Pinterest

Pinterest revenue per user is significantly higher in the US&Canada vs Europe or Rest of the world. Just one user in North America brings as much revenue as 7 Europe based or 51 users from the rest of the world. That is also the reason why the relatively large drop in revenue per user from North America in Q4/22 to Q1/23 has such a large impact on the global revenue per user.

Imperial Brands

Kudos to the investor relationship team from Imperial Brands to show such interesting statistics. smoking in Japan, US, Germany and Spain is relatively cheap compared to the average salary, while especially UK ad Australian based customers pay more than twice their salary share for smoking.

Also the comparison between a cup of espresso to a cigarette is a quite creative way of showing data. Even though I doubt that the average espresso in Germany costs 3,70$

S&P493

The majority of the performance of the S&P500 has come from just 7 companies. Meta, Amazon, Apple, Microsoft, Alphabet, Tesla and Nvidia have a return of +44% since the start of the year. Due to their large market cap, these handful of stocks decide what the market as a whole is doing. The S&P500 without these heavyweights sits at +1%.

That’s a wrap. I hope you enjoyed reading this and I would love you to subscribe to this Blog and follow me on Twitter

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Invest at your own risk, this is not financial advice!