barriers to entry NYT Write-Up For the first time in years, investors have become pessimistic on the main drivers of NYT’s business model – its digital news subscriber potential & its digital news pricing power. This write-up examines base rates for both of these drivers.
Valuation What's Priced In? Stock prices are the clearest and most reliable signal of the market’s expectations for a business’s future performance. Ignore them at your peril!
Flywheel Featured Scale Economies Shared Scale Economies Shared businesses have a flywheel because their competitive advantages increase as the business grows larger, making it harder and harder for competitors to offer as much value to customers.
Flywheel Online Marketplace Businesses Marketplace businesses offer one of the most durable competitive advantages available in the business world: network effects. The best marketplaces deliver value to all parties involved in the transaction (often creating Money Out of Nowhere [http://abovethecrowd.com/2019/02/27/money-out-of-nowhere-how-internet-marketplaces-unlock-economic-wealth/] ) and have very attractive financial profiles (often experiencing
Investing What Makes Stocks Go Up? If you read the title of this and are hoping for a magic formula that mints money, then read no further. You’re not going to find what you’re looking for in here. Both stock prices and changes in stock prices can be deconstructed into simple mathematical terms. In
Investing Featured The Nature of Content: New York Times vs Netflix How does the nature of content impact long-term margins at media businesses? All else equal, the more durable your content, the less you need to continually spend on content creation. Let's explore that.
cloud Featured The Customer Value Proposition of the Cloud The cloud is a great example of why it is often beneficial to turn your fixed costs into variable costs. Concurrently some players are emerging as scaled champions from having this be a fixed cost.
Investing When Fixed Costs Turn Variable What happens when a variable cost turns fixed? What happens when a fixed cost turns variable? Let's explore.
