| | | DIS, FB, and GOOG are real-life "disruptors"...
DIS is my favorite name in the streaming space, as I believe they have the best content library. They aren't going to eliminate HBO Max or NFLX or anything silly like that, but they will be one of the 3-5 big winners in the space. They have the revenue and profits to fund a long-term build-out and don't need to turn a profit from their streaming operations any time soon. Streaming is something like 10% of content consumption, so there is a LOT of room for growth in this segment.
FB owns enough of the social media channels that it is the single dominant player in the space. Their business model (monetizing consumer data) is probably not workable in the long run, but the endgame is likely a hybrid free/subscription model (as Seeking Alpha is trying to adopt), with FB taking a cut of the proceeds. Platform operations are the best! You don't have to invest in content or marketing, just build the platform and let others do their thing.
GOOG is on the verge of maturing from pure-growth to profitability and dividends. I expect the top line to slow, while the bottom line shows robust growth for another ten years. Again, they are largely a platform operation. The trick will be to keep them (along with AMZN, AAPL, FB, and MSFT) from owning everything.
People aren't factoring in the long-term potential of the tech giants. |
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