AMC Targets Netflix; Nio Is Still Not the One
Grab the Popcorn: There’s Another Netflix Competitor!
Hey, Great Stuff readers!
I’m out of the “office” today. My daughter turned 10 this week, and we have something special planned for her today… Shhh! Don’t tell her!
Anyway, that doesn’t mean I’ve left you out in the cold today. I still have a few hot takes on this week’s biggest stories.
Let’s get right to it, shall we?
1. The Bacon! Think About the Bacon!: What happens when you combine a trade war with a massive African swine fever outbreak? You get a 69.3% jump in pork prices. That’s right: China is suffering from skyrocketing pork prices.
It doesn’t help that China is also the world leader in pork consumption. It’s one of their staple foods. As a result, food prices spiked 11.2% last month. And that’s on top of a 10% gain in August.
Bacon is already expensive enough as it is. I don’t want to imagine a world where those prices spike nearly 70%. I just don’t think I could bear it.
2. You’re Still Not the One, Nio: Last month, China’s Tesla killer suffered a near-fatal blow. Nio Inc. (NYSE: NIO) reported that losses surged 80%, prompting the company to cancel its investor earnings call. That’s a level of “bad” that no company wants to endure.
This week, Nio has a savoir … well, it had a savior until this morning. (No, it’s not Trinity or Morpheus.) According to a report from the National Business Daily of China, Nio was in talks with the Wuxing District of Huzhou City. (That’s in east China, if you’re curious.)
The deal, reportedly valued at $707 million, was for Nio to set up a factory with an annual capacity of 200,000 units. This sounds wonderful on the surface, until you realize that Nio loses $0.24 on every dollar spent making electric vehicles.
And as I write this, reports are emerging that the talks fell through. Once again, it’s no-go for Nio.
Nope, I’m still not touching this supposed Tesla competitor, and you can’t make me.
3. I’ll Grab the Popcorn: If you listen to the analyst community on Wall Street, competition is constantly knocking on Netflix Inc.’s (Nasdaq: NFLX) door. It’s like “barbarians at the gates!” except with online streaming.
The latest perceived threat is AMC Entertainment Holdings (NYSE: AMC). Yes, the company that makes more money hawking popcorn and Sour Patch Kids than it does on movies is somehow a threat to Netflix.
That’s probably because AMC announced its own movie-streaming service. The cycle is just about complete. Soon, everyone and their mother will have their own streaming service. But what makes AMC different is that its AMC Stubbs loyalty program already has roughly 20 million subscribers.
AMC is clearly banking on a majority of these loyalty subs jumping on board with the new service. Unlike Netflix, however, AMC will be renting and selling movies. So, it’s not exactly a subscription service, but an on-demand rental service.
More details are sure to be forthcoming … but unless those details include renting movies that are already in theaters, I’m not sure what AMC offers that other competitors (including Netflix) don’t already provide.
Personally, I’m finding this announcement hard to take seriously.<
Speaking of streaming, there’s one must-see online event that’s on my radar right now. No, it won’t be on Netflix … and I can guarantee you it won’t be on whatever service AMC dishes out.
It’s the Profit Line Summit, your chance to see how you can use Jeff Yastine and Brian Christopher’s newest trading strategy — one that gives you the chance to boost your portfolio by a clean $100,000 in just 12 months’ time.
(I know, I know… “Great Stuff, you told us this yesterday!”)
Well, your fellow readers are already beating you to the punch, and spots for this summit are dwindling by the minute. What kind of guy would I be to keep you in the dark? On my daughter’s birthday, no less!
Before I run off, be sure to click here to reserve your spot at the Profit Line Summit.
That’s it for today. Until next time, good trading!
Great Stuff Managing Editor, Banyan Hill Publishing