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- NadhNadh
  ·2021-05-21
  Wow
  fuboTV: Building A Business In Interactive Television
  Summary fuboTV's stock price continues to be down from company-specific and macroeconomic concerns.
  fuboTV: Building A Business In Interactive Television
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- NadhNadh
  ·2021-05-21
  Cool
  Bitcoin hovers above $40,000 after a wild week that saw the cryptocurrency plunge 30% at one point
  Bitcoin’s price hovered above the $40,000 level on Friday, as a comeback for the world’s top cryptoc
  Bitcoin hovers above $40,000 after a wild week that saw the cryptocurrency plunge 30% at one point
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- NadhNadh
  ·2021-05-19
  No pain no gain just fund and ull get money
  No pain, no gain for big funds hunting the next Tesla
  May 19 (Reuters) - Place your bets! The race to find the next Tesla is on but the search is turning
  No pain, no gain for big funds hunting the next Tesla
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- NadhNadh
  ·2021-05-19
  Wow
  Oat Milk Company Oatly to IPO -- Here's What Investors Need to Know
  The largest oat milk company in the world, Oatly, could be going public this weekon Thursday.The Swedish firm is know for its dairy-alternative products made from oats. The items range from basic oat milk, to even ice cream and yogurt made from oat milk. According to its website, Oatly’s goal is “to make it easy for people to turn what they eat and drink into personal moments of healthy joy without recklessly taxing the planet’s resources in the process.”Oatly confidentially filed for its IPO ba
  Oat Milk Company Oatly to IPO -- Here's What Investors Need to Know
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Investors were particularly impressed by the company's surprising increase in subscribers. Normally, fuboTV loses some subscribers from the fourth quarter to the first quarter but not this year.</p>\n<p>So, is it time for investors to jump back into this stock after the shellacking it has taken since the beginning of this year? This article will explore fuboTV's business, examine earnings and give insights on whether the stock is a buy at the current price.</p>\n<p><b>Why Investors Were Impressed By Earnings</b></p>\n<p><img src=\"https://static.tigerbbs.com/3cde929ba81db88e000a4b25102c4eee\" tg-width=\"640\" tg-height=\"340\">Source:fuboTV 1Q2021 Earnings Slides</p>\n<p>As stated previously, investors were really impressed with subscriber growth which grew to 590,430 subs or 105% year-over-year compared to only 24% growth for the entirevirtual MVPDmarket as reported in Nielsen Media Research over the same period. This means fuboTV is currently taking market share at a time that other virtual MVPDs are losing market share.</p>\n<blockquote>\n In 2019, we were roughly around 3% market share of virtual MVPDs. As of the end of the first quarter, we are closer to 5.8%. And again, I think that, that will continue to accelerate as we continue to improve on operating our business based on the data that we're collecting.Source: CEO David Gandler - Needham Technology &amp; Media Broker Conference Call\n</blockquote>\n<p>On a sequential basis, subscribers were up 43K or 8% from Q4, while in the previous year subscribers declined 28K or down almost 9%. Apparently, this is the first time that fuboTV gained subscribers moving from Q4 to Q1.</p>\n<blockquote>\n As for the first time, we overcame historical first quarter seasonal trends and reported sequential revenue and sequential subscriber growth. Consumers are increasingly cutting the cord to go virtual, and they are choosing fuboTV.Source: CEO David Gandler -fuboTV Q1 2021 Earnings Conference Call\n</blockquote>\n<p><b>Why is fuboTV Taking Share?</b></p>\n<p>Recently, the CEO David Gandler addressed why fuboTV is taking share on the Needham Technology &amp; Media Broker Conference Call hosted by Needham analyst Laura Martin. The answer essentially broke down into two reasons.</p>\n<ol>\n <li>fuboTV is committed to building a true sports first service, while MVPD competitors are far more focused on general entertainment or scripted content. fuboTV has been slowly adding regional sports networks over time, and because those networks are expensive, many of fubo's competitors have been shying away from investing in regional sports networks content. The proof is in the pudding. The actual results show fubo is gaining a greater share of the sports customer because of their sports branding and sports focused strategies.</li>\n <li>fuboTV has been differentiating by developing improved customization and personalization capabilities. For instance, fuboTVallows viewers to choose their favorite teamsto automatically record. fuboTV users have a calendar view option. fuboTV on Apple TV has amulti-view option, which allows users to watch four channels at once. fuboTV has anon-demand \"Lookback\" featurethat enables a viewer to go back in time and watch previously aired games for up to 72 hours after the original air time. Last but not least, fuboTV is still the only vMVPD that allows viewers towatch specific sporting events in 4K.</li>\n</ol>\n<p>One big criticism that some people that are bearish on fuboTV have is that they believe thatthe vMVPD business model is not viablebecause of questions about the ability to attract a large number of cord cutters. There are some people that reason that cord cutters are primarily motivated to move to CTV because they can save money by getting rid of their cable TV subscriptions and switching to popular streaming services, such as Netflix(NASDAQ:NFLX)or Disney Plus(NYSE:DIS)accomplishes that goal.</p>\n<p>However, the numbers that fuboTV is producing up until now seems to disprove that theory and shows fubo's strategy is working.</p>\n<p><b>Advertising</b></p>\n<p>Advertising is extremely important to fuboTV as the company views advertising as a key component of profitability. Advertising is currently 11% of the company's total revenue and is increasingly helping to expand thecontribution margin.</p>\n<p><img src=\"https://static.tigerbbs.com/8d7ec32054926aaef41f6907cc94c44c\" tg-width=\"640\" tg-height=\"353\">Source:fuboTV Q1 2021 Earnings Presentation</p>\n<p>Q1 advertising revenue growth was 206% to close to $13 million with ARPU per month rising 57% to $7.11. This means that fuboTV is making $85 in ARPU per year and Roku is currently doing around $35 ARPU per year (TTM). So fuboTV is already doing around 2.5X Roku's ARPU and Roku's ARPU is considered top notch in advertising. Another thing of note is that a rising advertising ARPU on a platform is usually an indication that the users of that platform are being seen by advertisers as being increasingly more valuable.</p>\n<p>Why is advertising on fuboTV valuable to marketers?</p>\n<p>Well, the biggest reason might be that the primary content on fuboTV is sports and sports broadcasts are known to attract a very large segment of the men in the 18-34 age demographic, which is a group that not only has a reputation of being among the most difficult to reach by mass media but is alsothe most coveted demographic to advertise into.</p>\n<p>Just to illustrate the demographics that sports attracts, in 2020,ESPN was the #1 cable network in primefor Males aged 18-34, Males aged 18-49, Males aged 25-54, Persons aged 18-34, and Persons aged 18-49. fuboTV likely has very similar demographics to ESPN.</p>\n<p>A complimentary reason that advertisers are attracted to fuboTV is that93 percent of fuboTV viewers watch on a connected TV device, and 90 percent watch their favorite content live.</p>\n<p>One reason why live content is important for fuboTV is that there is a ton of competition withinvMVPDsthat offer mostly scripted content for TV and movie channels. There is a lot less competition within vMVPDs that have a focus on providing more live content like sports and news.</p>\n<p>fuboTV has more of a brand that focuses on live content than their competitors in theConnected TV(CTV) space. Consumers seem to be looking for that one central live content provider to satisfy their sports viewing needs and it looks like viewers are increasingly concluding that fuboTV is the best at satisfying those needs. That is the likely reason why fuboTV is grabbing market share from competitors in the CTV space.</p>\n<p>Advertisers have not only been noticing the fuboTV market share gains in CTV but have also been noticing that the share gains are coming in that 18 to 49 demographic that they really want to reach in the CTV space. CTV advertising has also been becoming increasingly popular with advertisers because the advertising tools for CTV have the ability to target those demographics that marketers want to reach far more effectively than onlinear TV. So fuboTV is becoming a very attractive way for advertisers to effectively target persons in the 18 - 49 age range, with a big emphasis on men in the 18 - 34 age range.</p>\n<p>fuboTV is really serious about expanding their advertising capabilities to reach that valuable primarily male 18 - 49 age demographic. Recently, fuboTV announced the launch of abranded content studio for advertisers at 2021 IAB NewFrontsand a partnership with LiveRamp to enhance its addressable advertising capabilities.</p>\n<blockquote>\n So that studio is a way for us to sort of provide more of a 360 approach for advertisers and give them that extra edge over another competitor that they might have that may not be able to speak to our customer base the same way. And I think what's important is that we are heavily male oriented. And as you know, it's very difficult to reach men 18 to 49. And this is an area where I think we're going to continue to improve, which is why the gaming component of our business is also so important, which we believe we'll continue to engage males 18 to 49 and sort of increase that base.Source: CEO David Gandler -Needham Technology &amp; Media Broker Conference Call\n</blockquote>\n<p><b>Revenues and Profitability</b></p>\n<p><img src=\"https://static.tigerbbs.com/32621f508a64833aa5c847fe1b4008a9\" tg-width=\"640\" tg-height=\"339\">Source:fuboTV Q1 2021 Shareholder Letter</p>\n<p>fuboTV Q1 2021 revenues more than doubled, growing 135% to $119.7M. Subscription revenue increased 131% YoY to $107.1 million, while Average Revenue Per User (ARPU) per month also jumped, up 28% to $69.09. Adjusted Contribution Margin was positive 5.3%, up 230 bps from 3.0% in Q1 2020.</p>\n<p><img src=\"https://static.tigerbbs.com/d2ee96c6f19bb656256a647979fcb7d0\" tg-width=\"640\" tg-height=\"350\">Source: fuboTV Q1 2021 Earnings Presentation</p>\n<p>One of the main things that some people take issue with fuboTV has to do with the company having negative to very low gross margins. Currently, fuboTV is a structurally unprofitable company because it has variable costs that are greater than the price of their product, consequently, even at scale, fuboTV would have a profitability problem because scaling the business would only cover costs that are fixed.</p>\n<p>fuboTV uses an alternative to the gross margin concept by reporting thecontribution margin, which excludes all fixed costs and is simply measured by subtracting the variable costs of sales from revenues. The contribution margin is actually a better way to assess fuboTV currently versus using gross margins because the contribution margin metric is directly measuring the impact of variable costs on the company. As long as the contribution margin trends in a favorable manner, the company is moving toward profitability.</p>\n<p>In the recentNeedham Technology &amp; Media Conference, CEO David Gandler highlighted that the original goal of fuboTV was to have subscription revenue to pay for the content and the ad revenue, as well as other service attachments to be the profitability drivers.</p>\n<p>As recent results show, fuboTV is starting to deliver on that original goal as advertising continues growing higher as a percentage of total revenue. The one thing I was unaware of is that wagering was not included in the original business model for fuboTV, which projected 30% gross margins in the long term. So, if wagering succeeds, it is expected to have additional upside in margins.</p>\n<p>Operating cash flow for fuboTV in Q1 was negative $53.9 million, improving more than $20 million compared to the fourth quarter 2020. This includes the impact of payments associated with wagering.</p>\n<p>Operating expenses for the quarter were up 80% year-over-year, far lower than the 135% increase in revenue over the same period.</p>\n<p>Earnings per share in Q1 were negative $0.59 and included $0.02 negative impact from expenses incurred for the launch of the wagering business and $0.02 negative impact from the amortization of the debt discount related to senior convertible notes.</p>\n<p>Given the multiple tailwinds, coupled with FUBO's growing market share and sequentially lower Subscriber Acquisition Costs (SAC), the company did accelerate investments in employees, technology and infrastructure during the quarter. This resulted in an expected expense increase in absolute dollars year over year, however, the expense costs were significantly lower in proportion to revenue, resulting in a material year-over-year improvement in the Adjusted EBITDA margin from -72.3% to -38.8%. So fuboTV showed progress towards profitability in the Q1 quarter.</p>\n<p><b>Balance Sheet</b></p>\n<p><img src=\"https://static.tigerbbs.com/8e3551d6d74e8ff3559abbd258eca5c3\" tg-width=\"635\" tg-height=\"403\">fuboTV ended the quarter with $465 million of cash, cash equivalents and restricted cash.</p>\n<p>fuboTV has adebt to equityof 0.48. Generally, a debt to equity ratio less than 1.0 is less risky than firms whose debt to equity ratio is greater than 1.0.</p>\n<p>fuboTV has aQuick Ratioor Acid Test of 2.33. A good Quick Ratio is any number greater than 1.0. A business has a quick ratio of 1.0 or greater, typically means the business is healthy and can pay its liabilities.</p>\n<p><b>Guidance</b></p>\n<p><img src=\"https://static.tigerbbs.com/a2c83ed0a62be8882fe5407820e01c38\" tg-width=\"640\" tg-height=\"413\">Source: fuboTV Q1 2021 Earnings Presentation</p>\n<p><b>An Interactive Product Development Company</b></p>\n<p>Analyst Laura Martin of Needham at the recent Needham Technology &amp; Media Conference call made a simple comment that helped me to really understand the fuboTV business.</p>\n<p>Essentially, fuboTV's core business makes no money and the company uses data to create different interactive products that can add $10 to $15 to $20 of monthly revenue per customer, thereby raising the ARPU over time.</p>\n<blockquote>\n [Think of] fubo as the razor blade. You started the core business basically makes no money, and then you do these add-on services like upsells and advertising and wagering, all of which at like 80% margins to reach your awesome 70% male customer base that's 40 years old. So 20 years younger than linear TV. So it seems like you're executing that.Laura Martin -Needham Technology &amp; Media Conference May 17, 2021 11:45 AM ET\n</blockquote>\n<p>One of the building blocks that fuboTV is currently building into its interactive television experience is fubo free to play predictive games, which should be going beta sometime in June. Fubo believes free to play games will enhance the sports streaming experience and also provide a bridge between its video service andsportsbook.</p>\n<p>The engine that makes everything go for fuboTV is data and the fubo free-to-play games will allow the company to better understand the types of games that people like to play. It will tell the company which types of sports people like, which types of plays that people like, the viewer level of engagement, the impact on viewership, and the impact on advertising sales. This data will allow fuboTV to highlight future games that people may like. It will also likely help fuboTV to develop better wagering products for its sportsbook down the road too.</p>\n<blockquote>\n But right now, I think that the way I look at fubo is more of a mini Amazon ecosystem. We have people that are spending 129 hours on the platform. That is an enormous amount of time that people are spending with us so it's in our best interest to learn what they like, learn what they don't like, learn what they want, give them what they want, see if we can create a more immersive experience.Source: David Gandler - -Needham Technology &amp; Media Conference May 17, 2021 11:45 AM ET\n</blockquote>\n<p>David Gandler has also mentioned that it is fuboTV's goal to emulate the success of a Spotify(NYSE:SPOT)or Netflix, which is generally considered to have been accomplished through using data to build their product development programs. I have recently started viewing fuboTV as more than just another vMVPD and much more as an interactive TV product development company.</p>\n<p>fuboTV Sportsbook</p>\n<p>In Q1, fuboTV took action to accelerate the launch of fubo Sportsbook by completing the acquisition of sports betting and interactive gaming companyVigtoryfor a total of $37.2 million.</p>\n<p>I think what attracted fuboTV to Vigtory is that the company owned a Sportsbook that had already signed amarket access dealin Iowa through Casino Queen. In addition, Fubo has also recently signed deals to become an authorized gaming operator of Major League Baseball (MLB) and the National Basketball Association (NBA). The NBA and MLB deals include access to official league data and logos within fubo Sportsbook once it is rolled out.</p>\n<p>There are some people though thatview fuboTV's plans as being unrealistic, and that is part of the reason that I consider fuboTV a very speculative company. There really is a chance that fuboTV Sportsbook could flop for various different reasons ranging from regulatory to consumers simply not liking the experience. I think that is why fubo plans on gathering data with free to play games to research the things consumers might be receptive to.</p>\n<p>If everything goes well, thenfuboTV will launch its sports betting divisionand Sportsbook app in Q4 of this year.</p>\n<p><b>NFL is the Game That Matters</b></p>\n<p>One other criticism that I have seen many people make about fuboTV is some of the gaps in sports coverage with the biggest one being that because fuboTV didn't have Turner networks, it had missed out on a big portion of March Madness.</p>\n<p>One thing I have recently learned about fuboTV is that the true building blocks for building a sports focused vMVPD in the USA is the NFL (and to a slightly lesser extent college football) and soccer is the required sport worldwide. Almost all other sports content is \"nice to have\" content that can be tacked on as the company scales. CEO David Gandler alludes to the importance of the NFL in the following comment.</p>\n<blockquote>\n I think the NFL is really the only media content that has the type of audience pull or aggregation that we're accustomed to seeing. And as you know, we didn't have Turner. So March madness didn't have the type of impact that most people had believed would occur at fubo would lose subscribers in the first quarter.Source: CEO David Gandler -Needham Technology &amp; Media Conference May 17, 2021\n</blockquote>\n<p><b>Valuation</b></p>\n<p><img src=\"https://static.tigerbbs.com/155f8d9c704b6cf239f0074efb8f33a9\" tg-width=\"618\" tg-height=\"412\">I decided to put DISH Network(NASDAQ:DISH)in the above comparison because Dish owns a competing vMVPD in Sling. Sling, however, is losing market share and Dish is a very mature company that investors don't see much upside in, which is likely why its valuation on a Price to Sales basis is so low.</p>\n<p>Roku(NASDAQ:ROKU)is comparable to fuboTV in the CTV advertising business. The Roku comparison is interesting because fuboTV's ARPU metrics are much better than the Roku ARPU metrics and I think fuboTV has more upside in advertising than even Roku. Roku, however, has far better profitability than fuboTV in almost any way one wants to look at it and Roku is a more mature, far less risky company at its current stage of development.</p>\n<p>DraftKings(NASDAQ:DKNG)is similar to fuboTV's future Sportsbook business. Obviously, DraftKings is much further ahead in developing its Sportsbook and has far better profitability as far as gross margins are concerned. I view fubo and DraftKings as relatively early stage companies with similar risks on the wagering side of the business.</p>\n<p>I view fuboTV as a lot more speculative than DraftKings. I also think the market views fuboTV as being more risky because there is a great deal of doubt and uncertainty that the fuboTV vMVPD business can be made profitable using only subscriptions and advertising.</p>\n<p>I find most valuation models to be just about useless when it comes to speculative stocks like fuboTV because no one can accurately predict whether this company will ever become profitable or not and that will determine whether the stock has big upside or big downside from current prices.</p>\n<p>However, Wall Street analysts don't get paid to say they can't really put out a price target on a company. So let's look at analysts' price targets.</p>\n<p><img src=\"https://static.tigerbbs.com/28caab1d76bf893e85775e00332ad7ed\" tg-width=\"464\" tg-height=\"393\">Source:Yahoo Finance</p>\n<p>There is a relatively wide spread in price targets with the low at $25 and the high at $60 but I am not a big believer in price targets for a company that is as speculative as fuboTV. The truth of the matter is that if fuboTV shows concrete evidence that the idea of it becoming an interactive CTV product development company is viable, then the stock price will likely blow past that $60 price target on the upper end like it was nothing.</p>\n<p>If, however, fuboTV's advertising initiatives fail or fuboTV finds it too difficult to establish its Sportsbook and wagering business, investors will likely lose enthusiasm for the stock and the price could sink into the single digits.</p>\n<p><b>Conclusion</b></p>\n<p>The way that I invest in speculative companies is I find the key metrics to follow and then monitor them. If key metrics are trending positively, then I am comfortable buying the stock, whether or not the market bids the stock up or down.</p>\n<p>If, however, I see multiple key metrics trending down, especially when the metrics are being measured year-over-year to eliminate seasonality, and I begin thinking a worsening trend is more than just a blip that the company can recover from, then I will begin entertaining the idea of selling the stock.</p>\n<p>So what are the key metrics to pay attention to with fuboTV?</p>\n<p>Well, the CEO has mentioned that the top Key Performance Indicators (KPIs) that all of fuboTV managers aim for are subscriber growth, contribution margin and ad sales. I consider that those three metrics are also good for investors to monitor fuboTV's progress.</p>\n<p>All three of those above metrics did very well in Q1 and currently fuboTV seems to be trending towards eventual profitability. So I consider the stock a buy at current prices and a strong buy if the stock price should fall further but that recommendation only applies for investors that have room for a speculative company in their portfolio. Conservative investors, on the other hand, might want to give fuboTV a pass.</p>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>fuboTV: Building A Business In Interactive Television</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nfuboTV: Building A Business In Interactive Television\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-21 18:05 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4430386-fubotv-building-a-business-in-interactive-television><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nfuboTV's stock price continues to be down from company-specific and macroeconomic concerns.\nThe company's latest earnings, however, continue to prove critics wrong as fuboTV continues its ...</p>\n\n<a href=\"https://seekingalpha.com/article/4430386-fubotv-building-a-business-in-interactive-television\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"FUBO":"fuboTV Inc."},"source_url":"https://seekingalpha.com/article/4430386-fubotv-building-a-business-in-interactive-television","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1167417774","content_text":"Summary\n\nfuboTV's stock price continues to be down from company-specific and macroeconomic concerns.\nThe company's latest earnings, however, continue to prove critics wrong as fuboTV continues its march toward profitability.\nfuboTV is taking market share in the vMVPD space.\nAll fuboTV Key Performance Indicators point towards the company being a buy.\n\nThe last time I wroteabout fuboTV(NYSE:FUBO)this past March, the stock was trading at $28.91 and it was still in the midst of getting pummeled after generalmarket correctionover investor fears about bond yields rising. fuboTV also hasa great deal of skepticism voiced by criticsabout fuboTV's business model over the last year that still drags down fuboTV's stock.\nData byYCharts\nHowever, the latest earnings by fuboTV continues proving the critics wrong and the report wasso impressivethat the stock closed almost 10% higher the following day after earnings were released. Investors were particularly impressed by the company's surprising increase in subscribers. Normally, fuboTV loses some subscribers from the fourth quarter to the first quarter but not this year.\nSo, is it time for investors to jump back into this stock after the shellacking it has taken since the beginning of this year? This article will explore fuboTV's business, examine earnings and give insights on whether the stock is a buy at the current price.\nWhy Investors Were Impressed By Earnings\nSource:fuboTV 1Q2021 Earnings Slides\nAs stated previously, investors were really impressed with subscriber growth which grew to 590,430 subs or 105% year-over-year compared to only 24% growth for the entirevirtual MVPDmarket as reported in Nielsen Media Research over the same period. This means fuboTV is currently taking market share at a time that other virtual MVPDs are losing market share.\n\n In 2019, we were roughly around 3% market share of virtual MVPDs. As of the end of the first quarter, we are closer to 5.8%. And again, I think that, that will continue to accelerate as we continue to improve on operating our business based on the data that we're collecting.Source: CEO David Gandler - Needham Technology & Media Broker Conference Call\n\nOn a sequential basis, subscribers were up 43K or 8% from Q4, while in the previous year subscribers declined 28K or down almost 9%. Apparently, this is the first time that fuboTV gained subscribers moving from Q4 to Q1.\n\n As for the first time, we overcame historical first quarter seasonal trends and reported sequential revenue and sequential subscriber growth. Consumers are increasingly cutting the cord to go virtual, and they are choosing fuboTV.Source: CEO David Gandler -fuboTV Q1 2021 Earnings Conference Call\n\nWhy is fuboTV Taking Share?\nRecently, the CEO David Gandler addressed why fuboTV is taking share on the Needham Technology & Media Broker Conference Call hosted by Needham analyst Laura Martin. The answer essentially broke down into two reasons.\n\nfuboTV is committed to building a true sports first service, while MVPD competitors are far more focused on general entertainment or scripted content. fuboTV has been slowly adding regional sports networks over time, and because those networks are expensive, many of fubo's competitors have been shying away from investing in regional sports networks content. The proof is in the pudding. The actual results show fubo is gaining a greater share of the sports customer because of their sports branding and sports focused strategies.\nfuboTV has been differentiating by developing improved customization and personalization capabilities. For instance, fuboTVallows viewers to choose their favorite teamsto automatically record. fuboTV users have a calendar view option. fuboTV on Apple TV has amulti-view option, which allows users to watch four channels at once. fuboTV has anon-demand \"Lookback\" featurethat enables a viewer to go back in time and watch previously aired games for up to 72 hours after the original air time. Last but not least, fuboTV is still the only vMVPD that allows viewers towatch specific sporting events in 4K.\n\nOne big criticism that some people that are bearish on fuboTV have is that they believe thatthe vMVPD business model is not viablebecause of questions about the ability to attract a large number of cord cutters. There are some people that reason that cord cutters are primarily motivated to move to CTV because they can save money by getting rid of their cable TV subscriptions and switching to popular streaming services, such as Netflix(NASDAQ:NFLX)or Disney Plus(NYSE:DIS)accomplishes that goal.\nHowever, the numbers that fuboTV is producing up until now seems to disprove that theory and shows fubo's strategy is working.\nAdvertising\nAdvertising is extremely important to fuboTV as the company views advertising as a key component of profitability. Advertising is currently 11% of the company's total revenue and is increasingly helping to expand thecontribution margin.\nSource:fuboTV Q1 2021 Earnings Presentation\nQ1 advertising revenue growth was 206% to close to $13 million with ARPU per month rising 57% to $7.11. This means that fuboTV is making $85 in ARPU per year and Roku is currently doing around $35 ARPU per year (TTM). So fuboTV is already doing around 2.5X Roku's ARPU and Roku's ARPU is considered top notch in advertising. Another thing of note is that a rising advertising ARPU on a platform is usually an indication that the users of that platform are being seen by advertisers as being increasingly more valuable.\nWhy is advertising on fuboTV valuable to marketers?\nWell, the biggest reason might be that the primary content on fuboTV is sports and sports broadcasts are known to attract a very large segment of the men in the 18-34 age demographic, which is a group that not only has a reputation of being among the most difficult to reach by mass media but is alsothe most coveted demographic to advertise into.\nJust to illustrate the demographics that sports attracts, in 2020,ESPN was the #1 cable network in primefor Males aged 18-34, Males aged 18-49, Males aged 25-54, Persons aged 18-34, and Persons aged 18-49. fuboTV likely has very similar demographics to ESPN.\nA complimentary reason that advertisers are attracted to fuboTV is that93 percent of fuboTV viewers watch on a connected TV device, and 90 percent watch their favorite content live.\nOne reason why live content is important for fuboTV is that there is a ton of competition withinvMVPDsthat offer mostly scripted content for TV and movie channels. There is a lot less competition within vMVPDs that have a focus on providing more live content like sports and news.\nfuboTV has more of a brand that focuses on live content than their competitors in theConnected TV(CTV) space. Consumers seem to be looking for that one central live content provider to satisfy their sports viewing needs and it looks like viewers are increasingly concluding that fuboTV is the best at satisfying those needs. That is the likely reason why fuboTV is grabbing market share from competitors in the CTV space.\nAdvertisers have not only been noticing the fuboTV market share gains in CTV but have also been noticing that the share gains are coming in that 18 to 49 demographic that they really want to reach in the CTV space. CTV advertising has also been becoming increasingly popular with advertisers because the advertising tools for CTV have the ability to target those demographics that marketers want to reach far more effectively than onlinear TV. So fuboTV is becoming a very attractive way for advertisers to effectively target persons in the 18 - 49 age range, with a big emphasis on men in the 18 - 34 age range.\nfuboTV is really serious about expanding their advertising capabilities to reach that valuable primarily male 18 - 49 age demographic. Recently, fuboTV announced the launch of abranded content studio for advertisers at 2021 IAB NewFrontsand a partnership with LiveRamp to enhance its addressable advertising capabilities.\n\n So that studio is a way for us to sort of provide more of a 360 approach for advertisers and give them that extra edge over another competitor that they might have that may not be able to speak to our customer base the same way. And I think what's important is that we are heavily male oriented. And as you know, it's very difficult to reach men 18 to 49. And this is an area where I think we're going to continue to improve, which is why the gaming component of our business is also so important, which we believe we'll continue to engage males 18 to 49 and sort of increase that base.Source: CEO David Gandler -Needham Technology & Media Broker Conference Call\n\nRevenues and Profitability\nSource:fuboTV Q1 2021 Shareholder Letter\nfuboTV Q1 2021 revenues more than doubled, growing 135% to $119.7M. Subscription revenue increased 131% YoY to $107.1 million, while Average Revenue Per User (ARPU) per month also jumped, up 28% to $69.09. Adjusted Contribution Margin was positive 5.3%, up 230 bps from 3.0% in Q1 2020.\nSource: fuboTV Q1 2021 Earnings Presentation\nOne of the main things that some people take issue with fuboTV has to do with the company having negative to very low gross margins. Currently, fuboTV is a structurally unprofitable company because it has variable costs that are greater than the price of their product, consequently, even at scale, fuboTV would have a profitability problem because scaling the business would only cover costs that are fixed.\nfuboTV uses an alternative to the gross margin concept by reporting thecontribution margin, which excludes all fixed costs and is simply measured by subtracting the variable costs of sales from revenues. The contribution margin is actually a better way to assess fuboTV currently versus using gross margins because the contribution margin metric is directly measuring the impact of variable costs on the company. As long as the contribution margin trends in a favorable manner, the company is moving toward profitability.\nIn the recentNeedham Technology & Media Conference, CEO David Gandler highlighted that the original goal of fuboTV was to have subscription revenue to pay for the content and the ad revenue, as well as other service attachments to be the profitability drivers.\nAs recent results show, fuboTV is starting to deliver on that original goal as advertising continues growing higher as a percentage of total revenue. The one thing I was unaware of is that wagering was not included in the original business model for fuboTV, which projected 30% gross margins in the long term. So, if wagering succeeds, it is expected to have additional upside in margins.\nOperating cash flow for fuboTV in Q1 was negative $53.9 million, improving more than $20 million compared to the fourth quarter 2020. This includes the impact of payments associated with wagering.\nOperating expenses for the quarter were up 80% year-over-year, far lower than the 135% increase in revenue over the same period.\nEarnings per share in Q1 were negative $0.59 and included $0.02 negative impact from expenses incurred for the launch of the wagering business and $0.02 negative impact from the amortization of the debt discount related to senior convertible notes.\nGiven the multiple tailwinds, coupled with FUBO's growing market share and sequentially lower Subscriber Acquisition Costs (SAC), the company did accelerate investments in employees, technology and infrastructure during the quarter. This resulted in an expected expense increase in absolute dollars year over year, however, the expense costs were significantly lower in proportion to revenue, resulting in a material year-over-year improvement in the Adjusted EBITDA margin from -72.3% to -38.8%. So fuboTV showed progress towards profitability in the Q1 quarter.\nBalance Sheet\nfuboTV ended the quarter with $465 million of cash, cash equivalents and restricted cash.\nfuboTV has adebt to equityof 0.48. Generally, a debt to equity ratio less than 1.0 is less risky than firms whose debt to equity ratio is greater than 1.0.\nfuboTV has aQuick Ratioor Acid Test of 2.33. A good Quick Ratio is any number greater than 1.0. A business has a quick ratio of 1.0 or greater, typically means the business is healthy and can pay its liabilities.\nGuidance\nSource: fuboTV Q1 2021 Earnings Presentation\nAn Interactive Product Development Company\nAnalyst Laura Martin of Needham at the recent Needham Technology & Media Conference call made a simple comment that helped me to really understand the fuboTV business.\nEssentially, fuboTV's core business makes no money and the company uses data to create different interactive products that can add $10 to $15 to $20 of monthly revenue per customer, thereby raising the ARPU over time.\n\n [Think of] fubo as the razor blade. You started the core business basically makes no money, and then you do these add-on services like upsells and advertising and wagering, all of which at like 80% margins to reach your awesome 70% male customer base that's 40 years old. So 20 years younger than linear TV. So it seems like you're executing that.Laura Martin -Needham Technology & Media Conference May 17, 2021 11:45 AM ET\n\nOne of the building blocks that fuboTV is currently building into its interactive television experience is fubo free to play predictive games, which should be going beta sometime in June. Fubo believes free to play games will enhance the sports streaming experience and also provide a bridge between its video service andsportsbook.\nThe engine that makes everything go for fuboTV is data and the fubo free-to-play games will allow the company to better understand the types of games that people like to play. It will tell the company which types of sports people like, which types of plays that people like, the viewer level of engagement, the impact on viewership, and the impact on advertising sales. This data will allow fuboTV to highlight future games that people may like. It will also likely help fuboTV to develop better wagering products for its sportsbook down the road too.\n\n But right now, I think that the way I look at fubo is more of a mini Amazon ecosystem. We have people that are spending 129 hours on the platform. That is an enormous amount of time that people are spending with us so it's in our best interest to learn what they like, learn what they don't like, learn what they want, give them what they want, see if we can create a more immersive experience.Source: David Gandler - -Needham Technology & Media Conference May 17, 2021 11:45 AM ET\n\nDavid Gandler has also mentioned that it is fuboTV's goal to emulate the success of a Spotify(NYSE:SPOT)or Netflix, which is generally considered to have been accomplished through using data to build their product development programs. I have recently started viewing fuboTV as more than just another vMVPD and much more as an interactive TV product development company.\nfuboTV Sportsbook\nIn Q1, fuboTV took action to accelerate the launch of fubo Sportsbook by completing the acquisition of sports betting and interactive gaming companyVigtoryfor a total of $37.2 million.\nI think what attracted fuboTV to Vigtory is that the company owned a Sportsbook that had already signed amarket access dealin Iowa through Casino Queen. In addition, Fubo has also recently signed deals to become an authorized gaming operator of Major League Baseball (MLB) and the National Basketball Association (NBA). The NBA and MLB deals include access to official league data and logos within fubo Sportsbook once it is rolled out.\nThere are some people though thatview fuboTV's plans as being unrealistic, and that is part of the reason that I consider fuboTV a very speculative company. There really is a chance that fuboTV Sportsbook could flop for various different reasons ranging from regulatory to consumers simply not liking the experience. I think that is why fubo plans on gathering data with free to play games to research the things consumers might be receptive to.\nIf everything goes well, thenfuboTV will launch its sports betting divisionand Sportsbook app in Q4 of this year.\nNFL is the Game That Matters\nOne other criticism that I have seen many people make about fuboTV is some of the gaps in sports coverage with the biggest one being that because fuboTV didn't have Turner networks, it had missed out on a big portion of March Madness.\nOne thing I have recently learned about fuboTV is that the true building blocks for building a sports focused vMVPD in the USA is the NFL (and to a slightly lesser extent college football) and soccer is the required sport worldwide. Almost all other sports content is \"nice to have\" content that can be tacked on as the company scales. CEO David Gandler alludes to the importance of the NFL in the following comment.\n\n I think the NFL is really the only media content that has the type of audience pull or aggregation that we're accustomed to seeing. And as you know, we didn't have Turner. So March madness didn't have the type of impact that most people had believed would occur at fubo would lose subscribers in the first quarter.Source: CEO David Gandler -Needham Technology & Media Conference May 17, 2021\n\nValuation\nI decided to put DISH Network(NASDAQ:DISH)in the above comparison because Dish owns a competing vMVPD in Sling. Sling, however, is losing market share and Dish is a very mature company that investors don't see much upside in, which is likely why its valuation on a Price to Sales basis is so low.\nRoku(NASDAQ:ROKU)is comparable to fuboTV in the CTV advertising business. The Roku comparison is interesting because fuboTV's ARPU metrics are much better than the Roku ARPU metrics and I think fuboTV has more upside in advertising than even Roku. Roku, however, has far better profitability than fuboTV in almost any way one wants to look at it and Roku is a more mature, far less risky company at its current stage of development.\nDraftKings(NASDAQ:DKNG)is similar to fuboTV's future Sportsbook business. Obviously, DraftKings is much further ahead in developing its Sportsbook and has far better profitability as far as gross margins are concerned. I view fubo and DraftKings as relatively early stage companies with similar risks on the wagering side of the business.\nI view fuboTV as a lot more speculative than DraftKings. I also think the market views fuboTV as being more risky because there is a great deal of doubt and uncertainty that the fuboTV vMVPD business can be made profitable using only subscriptions and advertising.\nI find most valuation models to be just about useless when it comes to speculative stocks like fuboTV because no one can accurately predict whether this company will ever become profitable or not and that will determine whether the stock has big upside or big downside from current prices.\nHowever, Wall Street analysts don't get paid to say they can't really put out a price target on a company. So let's look at analysts' price targets.\nSource:Yahoo Finance\nThere is a relatively wide spread in price targets with the low at $25 and the high at $60 but I am not a big believer in price targets for a company that is as speculative as fuboTV. The truth of the matter is that if fuboTV shows concrete evidence that the idea of it becoming an interactive CTV product development company is viable, then the stock price will likely blow past that $60 price target on the upper end like it was nothing.\nIf, however, fuboTV's advertising initiatives fail or fuboTV finds it too difficult to establish its Sportsbook and wagering business, investors will likely lose enthusiasm for the stock and the price could sink into the single digits.\nConclusion\nThe way that I invest in speculative companies is I find the key metrics to follow and then monitor them. If key metrics are trending positively, then I am comfortable buying the stock, whether or not the market bids the stock up or down.\nIf, however, I see multiple key metrics trending down, especially when the metrics are being measured year-over-year to eliminate seasonality, and I begin thinking a worsening trend is more than just a blip that the company can recover from, then I will begin entertaining the idea of selling the stock.\nSo what are the key metrics to pay attention to with fuboTV?\nWell, the CEO has mentioned that the top Key Performance Indicators (KPIs) that all of fuboTV managers aim for are subscriber growth, contribution margin and ad sales. I consider that those three metrics are also good for investors to monitor fuboTV's progress.\nAll three of those above metrics did very well in Q1 and currently fuboTV seems to be trending towards eventual profitability. So I consider the stock a buy at current prices and a strong buy if the stock price should fall further but that recommendation only applies for investors that have room for a speculative company in their portfolio. Conservative investors, on the other hand, might want to give fuboTV a pass.","news_type":1},"isVote":1,"tweetType":1,"viewCount":132,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":139110622,"gmtCreate":1621599682866,"gmtModify":1704360323113,"author":{"id":"3584498828278035","authorId":"3584498828278035","name":"Nadh","avatar":"https://static.tigerbbs.com/1c7a3761b3fd7d27ae83b8619be8a044","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3584498828278035","idStr":"3584498828278035"},"themes":[],"htmlText":"Cool","listText":"Cool","text":"Cool","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/139110622","repostId":"1139943283","repostType":4,"repost":{"id":"1139943283","pubTimestamp":1621595661,"share":"https://ttm.financial/m/news/1139943283?lang=&edition=fundamental","pubTime":"2021-05-21 19:14","market":"fut","language":"en","title":"Bitcoin hovers above $40,000 after a wild week that saw the cryptocurrency plunge 30% at one point","url":"https://stock-news.laohu8.com/highlight/detail?id=1139943283","media":"CNBC","summary":"Bitcoin’s price hovered above the $40,000 level on Friday, as a comeback for the world’s top cryptoc","content":"<div>\n<p>Bitcoin’s price hovered above the $40,000 level on Friday, as a comeback for the world’s top cryptocurrency was checked by worries around regulation.\nThe digital coin was up 1.7% at a price of $40,841...</p>\n\n<a href=\"https://www.cnbc.com/2021/05/21/bitcoin-hovers-above-40000-mark-as-regulatory-concerns-cap-gains.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Bitcoin hovers above $40,000 after a wild week that saw the cryptocurrency plunge 30% at one point</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; 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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBitcoin hovers above $40,000 after a wild week that saw the cryptocurrency plunge 30% at one point\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-21 19:14 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/05/21/bitcoin-hovers-above-40000-mark-as-regulatory-concerns-cap-gains.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Bitcoin’s price hovered above the $40,000 level on Friday, as a comeback for the world’s top cryptocurrency was checked by worries around regulation.\nThe digital coin was up 1.7% at a price of $40,841...</p>\n\n<a href=\"https://www.cnbc.com/2021/05/21/bitcoin-hovers-above-40000-mark-as-regulatory-concerns-cap-gains.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"COIN":"Coinbase Global, Inc.","PYPL":"PayPal","SQ":"Block","GBTC":"Grayscale Bitcoin Trust"},"source_url":"https://www.cnbc.com/2021/05/21/bitcoin-hovers-above-40000-mark-as-regulatory-concerns-cap-gains.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1139943283","content_text":"Bitcoin’s price hovered above the $40,000 level on Friday, as a comeback for the world’s top cryptocurrency was checked by worries around regulation.\nThe digital coin was up 1.7% at a price of $40,841 by 6 a.m. ET, according to Coin Metrics data. It bounced above the $42,000 mark Thursday as digital currencies attempted to rebound from a brutal sell-off earlier in the week.\nOther cryptocurrencies were in the red Friday, with ether down 2.2% at $2,741, XRP off by 4.6% at $1.13 and litecoin falling 2.4% to $206. Dogecoin, a meme-inspired crypto supported by Tesla CEO Elon Musk, was down 2.6% at 39 cents.\nBitcoin’s gains were capped Friday after the U.S. Treasury Department said a day earlier that it would require any cryptocurrency transfer worth $10,000 or more to be reported to the Internal Revenue Service.\n“Cryptocurrency already poses a significant detection problem by facilitating illegal activity broadly including tax evasion,” the Treasury said.\nIt’s the latest sign of an impending regulatory crackdown on cryptocurrencies. Earlier this week, China issued a warning reiterating its stance that financial institutions and payment firms are forbidden from providing crypto-related services.\ntcoin and other cryptocurrencies slid as much as 30%on Wednesday, as investors reacted to the statement from China as well as mixed signals from Tesla CEO Elon Musk.\nMusk came out as a supporter of bitcoin earlier this year, with Tesla buying $1.5 billion worth of the cryptocurrency and briefly accepting it as a means of payment. However, he halted the purchase of Tesla vehicles with bitcoin last week, citing concerns over bitcoin’s huge energy consumption.\nCritics have long warned about bitcoin’s environmental impact. The cryptocurrency uses as much electricity as entire countries like the United Arab Emirates and Pakistan, according to Cambridge University researchers.","news_type":1},"isVote":1,"tweetType":1,"viewCount":101,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":197100198,"gmtCreate":1621431678714,"gmtModify":1704357533281,"author":{"id":"3584498828278035","authorId":"3584498828278035","name":"Nadh","avatar":"https://static.tigerbbs.com/1c7a3761b3fd7d27ae83b8619be8a044","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3584498828278035","idStr":"3584498828278035"},"themes":[],"htmlText":"No pain no gain just fund and ull get money","listText":"No pain no gain just fund and ull get money","text":"No pain no gain just fund and ull get money","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/197100198","repostId":"2136911940","repostType":4,"repost":{"id":"2136911940","weMediaInfo":{"introduction":"Reuters.com brings you the latest news from around the world, covering breaking news in markets, business, politics, entertainment and technology","home_visible":1,"media_name":"Reuters","id":"1036604489","head_image":"https://static.tigerbbs.com/443ce19704621c837795676028cec868"},"pubTimestamp":1621427912,"share":"https://ttm.financial/m/news/2136911940?lang=&edition=fundamental","pubTime":"2021-05-19 20:38","market":"us","language":"en","title":"No pain, no gain for big funds hunting the next Tesla","url":"https://stock-news.laohu8.com/highlight/detail?id=2136911940","media":"Reuters","summary":"May 19 (Reuters) - Place your bets! The race to find the next Tesla is on but the search is turning ","content":"<p>May 19 (Reuters) - Place your bets! The race to find the next Tesla is on but the search is turning up plenty of clunkers as well as potential superstars.</p>\n<p>Fidelity Investments, BlackRock Inc, T. Rowe Price Group Inc and Scotland's Baillie Gifford are among the fund houses helping to bankroll the shift from fossil-fueled transportation with investments in one or more of 32 electric vehicle industry companies which they believe will be long-term winners in the electrification movement.</p>\n<p>In the short-term, there have been some bumps in the road.</p>\n<p>In just three weeks, from late April to mid-May, the combined value of those 32 companies has slid more than $200 billion to $810 billion, according to data compiled by Reuters and investor website Pitchbook, with Tesla, the world's most valuable automaker, accounting for three-quarters of the drop.</p>\n<p>The steep slide in the EV sector is, for some market observers, a natural progression from the sky-high valuations being doled out in a crowded market to companies, which in some cases have no revenues or even products to sell.</p>\n<p>\"You are going to see some roadkill,\" said Evangelos Simoudis, venture investor and author of “Transportation Transformation”.</p>\n<p>Of the 32 companies analysed by Reuters, 17 are doing or have done reverse mergers via special purpose acquisition companies (SPACs) often referred to as blank-check companies. Of the remaining 15, six are private with the rest publicly listed. Of the four big fund managers, T. Rowe Price has not invested in any of the EV-related SPACs.</p>\n<p>The market drop is particularly prevalent among those startups that have gone public through reverse mergers. From late April to mid-May, the market cap of Lordstown Motors</p>\n<p>plunged 32%, while battery company QuantumScape fell 29% and infrastructure company ChargePoint was down 24%.</p>\n<p>During the same period, Tesla's value declined 23%.</p>\n<p>Reuters could not quantify the overall impact of the recent slide in electric vehicle company valuations on the individual asset managers as some of the investments are private and it is unclear how much each firm has invested in each.</p>\n<p>BlackRock has invested in 22 of the 32 companies, Fidelity in 19, Baillie Gifford in eight and T. Rowe Price in four.</p>\n<p>The risk to mom-and-pop investors in mutual funds is somewhat limited, because portfolio managers typically spread their bets across more than 100 companies in a wide array of sectors.</p>\n<p>The big houses also parcel out their key investments across a number of their funds. Fidelity, for instance, distributes its Tesla investments to more than 100 of its mutual funds.</p>\n<p>\"We are looking for companies that are going to compound (in value) over time,\" said Elliot Mattingly, Fidelity's chief auto analyst and portfolio manager of the Fidelity Select Automotive Portfolio .</p>\n<p>Mattingly’s $191 million fund has posted a 102% total return over the past year. The fund’s top holding, though, is auto veteran Toyota , which accounts for 11% of the total portfolio. General Motors , Tesla and Chinese electric carmaker Nio rank second, third and fourth, respectively, fund disclosures show.</p>\n<p><b>ROULETTE WHEEL</b></p>\n<p>With traditional stock-picking funds losing business to cheaper index-tracking players, there is pressure to find stocks that will juice returns.</p>\n<p>\"These big investors, they're like, 'You know what, I'm going to bet on red, black.' They basically take out one quarter of the roulette wheel and they start putting money around and then they refine it,\" said Tony Aquila, chief executive of and an early investor in EV startup Canoo.</p>\n<p>\"It's no different than a sophisticated bettor in Vegas.\"</p>\n<p>An investment from a major fund firm is a huge endorsement for startups with no track record, and executives in the electric vehicle industry say such funds are accelerating the shift from fossil-fueled transportation.</p>\n<p>\"In categories where you have high innovation and it's an arms race, like with EVs, the BlackRocks and Fidelities are playing a very important role (in) stimulating innovation,\" said Aquila.</p>\n<p>A new route for institutional investors, which have seen both traditional investment opportunities and returns dwindle as the number of public companies has shrunk, is the PIPE, or private investment in public equities (PIPE).</p>\n<p>Backers of so-called SPACs or blank-check companies -- listed shell companies that raise money to acquire private businesses -- started offering private investments to big investors, typically at a discount, last year as a way to get them into startups ahead of their public offerings.</p>\n<p>Buying into a company via a SPAC can be riskier because SPACs have greater latitude than companies doing a traditional IPO to make growth projections that may not materialise.</p>\n<p>The Reuters analysis of investment data compiled by PitchBook shows a cadre of 17 EV-related startups has raised more than $9 billion in private investments backed by one or more of the big asset managers.</p>\n<p>BlackRock declined to comment for this story but it has been vocal about the transition to a more sustainable world presenting \"a historic investment opportunity.\"</p>\n<p><b>LONG-TERM PLAYS</b></p>\n<p>The PIPE route isn't universally popular.</p>\n<p>Baltimore-based T.Rowe Price has steered clear of offers from blank-check sponsors in the EV space, preferring instead to invest in companies with a path to going public within two to three years, giving it time to get acquainted with their strategies and have some influence on their boards.</p>\n<p>\"We don't like to spray and pray,\" said Joe Fath, portfolio manager of the T. Rowe Price Growth Stock Fund. \"Some investors spread bullets in a lot of different places. We do deep industry and company-specific research (and) selectively bet on firms that we think will be durable winners.\"</p>\n<p>Fath is a board observer at Rivian where T. Rowe Price has led the last three private investment rounds. Rivian's valuation</p>\n<p>continues to climb — from about $6 billion in early 2019 to an estimated $27.6 billion after the most recent raise in January 2021.</p>\n<p>Baillie Gifford, a 113-year-old fund firm whose early bet on Tesla has helped it outflank peers, is active as a pre- and post-IPO investor in several well-known EV makers.</p>\n<p>It has also participated in private placements connected with aerial vehicle startups Joby and German rival Lilium.</p>\n<p>The firm, with around $450 billion in assets under management, has a strategy of investing in companies that it expects to grow dramatically.</p>\n<p>The firm's investment in Chinese EV and battery maker BYD, which is also backed by Warren Buffett, has shed 13% of its value from late April to mid-May. Baillie Gifford's shares in newly public ChargePoint have dropped 24% over the same period.</p>\n<p>Investment manager Brian Lum said the firm's focus was on long-term performance.</p>\n<p>\"We typically hold things for five years, 10 years or even longer,\" said Lum. \"EV dominance is almost inevitable.\"</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>No pain, no gain for big funds hunting the next Tesla</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNo pain, no gain for big funds hunting the next Tesla\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1036604489\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/443ce19704621c837795676028cec868);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Reuters </p>\n<p class=\"h-time\">2021-05-19 20:38</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p>May 19 (Reuters) - Place your bets! The race to find the next Tesla is on but the search is turning up plenty of clunkers as well as potential superstars.</p>\n<p>Fidelity Investments, BlackRock Inc, T. Rowe Price Group Inc and Scotland's Baillie Gifford are among the fund houses helping to bankroll the shift from fossil-fueled transportation with investments in one or more of 32 electric vehicle industry companies which they believe will be long-term winners in the electrification movement.</p>\n<p>In the short-term, there have been some bumps in the road.</p>\n<p>In just three weeks, from late April to mid-May, the combined value of those 32 companies has slid more than $200 billion to $810 billion, according to data compiled by Reuters and investor website Pitchbook, with Tesla, the world's most valuable automaker, accounting for three-quarters of the drop.</p>\n<p>The steep slide in the EV sector is, for some market observers, a natural progression from the sky-high valuations being doled out in a crowded market to companies, which in some cases have no revenues or even products to sell.</p>\n<p>\"You are going to see some roadkill,\" said Evangelos Simoudis, venture investor and author of “Transportation Transformation”.</p>\n<p>Of the 32 companies analysed by Reuters, 17 are doing or have done reverse mergers via special purpose acquisition companies (SPACs) often referred to as blank-check companies. Of the remaining 15, six are private with the rest publicly listed. Of the four big fund managers, T. Rowe Price has not invested in any of the EV-related SPACs.</p>\n<p>The market drop is particularly prevalent among those startups that have gone public through reverse mergers. From late April to mid-May, the market cap of Lordstown Motors</p>\n<p>plunged 32%, while battery company QuantumScape fell 29% and infrastructure company ChargePoint was down 24%.</p>\n<p>During the same period, Tesla's value declined 23%.</p>\n<p>Reuters could not quantify the overall impact of the recent slide in electric vehicle company valuations on the individual asset managers as some of the investments are private and it is unclear how much each firm has invested in each.</p>\n<p>BlackRock has invested in 22 of the 32 companies, Fidelity in 19, Baillie Gifford in eight and T. Rowe Price in four.</p>\n<p>The risk to mom-and-pop investors in mutual funds is somewhat limited, because portfolio managers typically spread their bets across more than 100 companies in a wide array of sectors.</p>\n<p>The big houses also parcel out their key investments across a number of their funds. Fidelity, for instance, distributes its Tesla investments to more than 100 of its mutual funds.</p>\n<p>\"We are looking for companies that are going to compound (in value) over time,\" said Elliot Mattingly, Fidelity's chief auto analyst and portfolio manager of the Fidelity Select Automotive Portfolio .</p>\n<p>Mattingly’s $191 million fund has posted a 102% total return over the past year. The fund’s top holding, though, is auto veteran Toyota , which accounts for 11% of the total portfolio. General Motors , Tesla and Chinese electric carmaker Nio rank second, third and fourth, respectively, fund disclosures show.</p>\n<p><b>ROULETTE WHEEL</b></p>\n<p>With traditional stock-picking funds losing business to cheaper index-tracking players, there is pressure to find stocks that will juice returns.</p>\n<p>\"These big investors, they're like, 'You know what, I'm going to bet on red, black.' They basically take out one quarter of the roulette wheel and they start putting money around and then they refine it,\" said Tony Aquila, chief executive of and an early investor in EV startup Canoo.</p>\n<p>\"It's no different than a sophisticated bettor in Vegas.\"</p>\n<p>An investment from a major fund firm is a huge endorsement for startups with no track record, and executives in the electric vehicle industry say such funds are accelerating the shift from fossil-fueled transportation.</p>\n<p>\"In categories where you have high innovation and it's an arms race, like with EVs, the BlackRocks and Fidelities are playing a very important role (in) stimulating innovation,\" said Aquila.</p>\n<p>A new route for institutional investors, which have seen both traditional investment opportunities and returns dwindle as the number of public companies has shrunk, is the PIPE, or private investment in public equities (PIPE).</p>\n<p>Backers of so-called SPACs or blank-check companies -- listed shell companies that raise money to acquire private businesses -- started offering private investments to big investors, typically at a discount, last year as a way to get them into startups ahead of their public offerings.</p>\n<p>Buying into a company via a SPAC can be riskier because SPACs have greater latitude than companies doing a traditional IPO to make growth projections that may not materialise.</p>\n<p>The Reuters analysis of investment data compiled by PitchBook shows a cadre of 17 EV-related startups has raised more than $9 billion in private investments backed by one or more of the big asset managers.</p>\n<p>BlackRock declined to comment for this story but it has been vocal about the transition to a more sustainable world presenting \"a historic investment opportunity.\"</p>\n<p><b>LONG-TERM PLAYS</b></p>\n<p>The PIPE route isn't universally popular.</p>\n<p>Baltimore-based T.Rowe Price has steered clear of offers from blank-check sponsors in the EV space, preferring instead to invest in companies with a path to going public within two to three years, giving it time to get acquainted with their strategies and have some influence on their boards.</p>\n<p>\"We don't like to spray and pray,\" said Joe Fath, portfolio manager of the T. Rowe Price Growth Stock Fund. \"Some investors spread bullets in a lot of different places. We do deep industry and company-specific research (and) selectively bet on firms that we think will be durable winners.\"</p>\n<p>Fath is a board observer at Rivian where T. Rowe Price has led the last three private investment rounds. Rivian's valuation</p>\n<p>continues to climb — from about $6 billion in early 2019 to an estimated $27.6 billion after the most recent raise in January 2021.</p>\n<p>Baillie Gifford, a 113-year-old fund firm whose early bet on Tesla has helped it outflank peers, is active as a pre- and post-IPO investor in several well-known EV makers.</p>\n<p>It has also participated in private placements connected with aerial vehicle startups Joby and German rival Lilium.</p>\n<p>The firm, with around $450 billion in assets under management, has a strategy of investing in companies that it expects to grow dramatically.</p>\n<p>The firm's investment in Chinese EV and battery maker BYD, which is also backed by Warren Buffett, has shed 13% of its value from late April to mid-May. Baillie Gifford's shares in newly public ChargePoint have dropped 24% over the same period.</p>\n<p>Investment manager Brian Lum said the firm's focus was on long-term performance.</p>\n<p>\"We typically hold things for five years, 10 years or even longer,\" said Lum. \"EV dominance is almost inevitable.\"</p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TROW":"普信集团","BYD":"博伊德赌场","BLK":"贝莱德","QS":"Quantumscape Corp.","NIO":"蔚来","GOEV":"Canoo Inc.","TSLA":"特斯拉","CHPT":"ChargePoint Holdings Inc."},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2136911940","content_text":"May 19 (Reuters) - Place your bets! The race to find the next Tesla is on but the search is turning up plenty of clunkers as well as potential superstars.\nFidelity Investments, BlackRock Inc, T. Rowe Price Group Inc and Scotland's Baillie Gifford are among the fund houses helping to bankroll the shift from fossil-fueled transportation with investments in one or more of 32 electric vehicle industry companies which they believe will be long-term winners in the electrification movement.\nIn the short-term, there have been some bumps in the road.\nIn just three weeks, from late April to mid-May, the combined value of those 32 companies has slid more than $200 billion to $810 billion, according to data compiled by Reuters and investor website Pitchbook, with Tesla, the world's most valuable automaker, accounting for three-quarters of the drop.\nThe steep slide in the EV sector is, for some market observers, a natural progression from the sky-high valuations being doled out in a crowded market to companies, which in some cases have no revenues or even products to sell.\n\"You are going to see some roadkill,\" said Evangelos Simoudis, venture investor and author of “Transportation Transformation”.\nOf the 32 companies analysed by Reuters, 17 are doing or have done reverse mergers via special purpose acquisition companies (SPACs) often referred to as blank-check companies. Of the remaining 15, six are private with the rest publicly listed. Of the four big fund managers, T. Rowe Price has not invested in any of the EV-related SPACs.\nThe market drop is particularly prevalent among those startups that have gone public through reverse mergers. From late April to mid-May, the market cap of Lordstown Motors\nplunged 32%, while battery company QuantumScape fell 29% and infrastructure company ChargePoint was down 24%.\nDuring the same period, Tesla's value declined 23%.\nReuters could not quantify the overall impact of the recent slide in electric vehicle company valuations on the individual asset managers as some of the investments are private and it is unclear how much each firm has invested in each.\nBlackRock has invested in 22 of the 32 companies, Fidelity in 19, Baillie Gifford in eight and T. Rowe Price in four.\nThe risk to mom-and-pop investors in mutual funds is somewhat limited, because portfolio managers typically spread their bets across more than 100 companies in a wide array of sectors.\nThe big houses also parcel out their key investments across a number of their funds. Fidelity, for instance, distributes its Tesla investments to more than 100 of its mutual funds.\n\"We are looking for companies that are going to compound (in value) over time,\" said Elliot Mattingly, Fidelity's chief auto analyst and portfolio manager of the Fidelity Select Automotive Portfolio .\nMattingly’s $191 million fund has posted a 102% total return over the past year. The fund’s top holding, though, is auto veteran Toyota , which accounts for 11% of the total portfolio. General Motors , Tesla and Chinese electric carmaker Nio rank second, third and fourth, respectively, fund disclosures show.\nROULETTE WHEEL\nWith traditional stock-picking funds losing business to cheaper index-tracking players, there is pressure to find stocks that will juice returns.\n\"These big investors, they're like, 'You know what, I'm going to bet on red, black.' They basically take out one quarter of the roulette wheel and they start putting money around and then they refine it,\" said Tony Aquila, chief executive of and an early investor in EV startup Canoo.\n\"It's no different than a sophisticated bettor in Vegas.\"\nAn investment from a major fund firm is a huge endorsement for startups with no track record, and executives in the electric vehicle industry say such funds are accelerating the shift from fossil-fueled transportation.\n\"In categories where you have high innovation and it's an arms race, like with EVs, the BlackRocks and Fidelities are playing a very important role (in) stimulating innovation,\" said Aquila.\nA new route for institutional investors, which have seen both traditional investment opportunities and returns dwindle as the number of public companies has shrunk, is the PIPE, or private investment in public equities (PIPE).\nBackers of so-called SPACs or blank-check companies -- listed shell companies that raise money to acquire private businesses -- started offering private investments to big investors, typically at a discount, last year as a way to get them into startups ahead of their public offerings.\nBuying into a company via a SPAC can be riskier because SPACs have greater latitude than companies doing a traditional IPO to make growth projections that may not materialise.\nThe Reuters analysis of investment data compiled by PitchBook shows a cadre of 17 EV-related startups has raised more than $9 billion in private investments backed by one or more of the big asset managers.\nBlackRock declined to comment for this story but it has been vocal about the transition to a more sustainable world presenting \"a historic investment opportunity.\"\nLONG-TERM PLAYS\nThe PIPE route isn't universally popular.\nBaltimore-based T.Rowe Price has steered clear of offers from blank-check sponsors in the EV space, preferring instead to invest in companies with a path to going public within two to three years, giving it time to get acquainted with their strategies and have some influence on their boards.\n\"We don't like to spray and pray,\" said Joe Fath, portfolio manager of the T. Rowe Price Growth Stock Fund. \"Some investors spread bullets in a lot of different places. We do deep industry and company-specific research (and) selectively bet on firms that we think will be durable winners.\"\nFath is a board observer at Rivian where T. Rowe Price has led the last three private investment rounds. Rivian's valuation\ncontinues to climb — from about $6 billion in early 2019 to an estimated $27.6 billion after the most recent raise in January 2021.\nBaillie Gifford, a 113-year-old fund firm whose early bet on Tesla has helped it outflank peers, is active as a pre- and post-IPO investor in several well-known EV makers.\nIt has also participated in private placements connected with aerial vehicle startups Joby and German rival Lilium.\nThe firm, with around $450 billion in assets under management, has a strategy of investing in companies that it expects to grow dramatically.\nThe firm's investment in Chinese EV and battery maker BYD, which is also backed by Warren Buffett, has shed 13% of its value from late April to mid-May. Baillie Gifford's shares in newly public ChargePoint have dropped 24% over the same period.\nInvestment manager Brian Lum said the firm's focus was on long-term performance.\n\"We typically hold things for five years, 10 years or even longer,\" said Lum. \"EV dominance is almost inevitable.\"","news_type":1},"isVote":1,"tweetType":1,"viewCount":127,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":197372270,"gmtCreate":1621431517390,"gmtModify":1704357527736,"author":{"id":"3584498828278035","authorId":"3584498828278035","name":"Nadh","avatar":"https://static.tigerbbs.com/1c7a3761b3fd7d27ae83b8619be8a044","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3584498828278035","idStr":"3584498828278035"},"themes":[],"htmlText":"Wow","listText":"Wow","text":"Wow","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/197372270","repostId":"1126891253","repostType":4,"repost":{"id":"1126891253","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1621404438,"share":"https://ttm.financial/m/news/1126891253?lang=&edition=fundamental","pubTime":"2021-05-19 14:07","market":"us","language":"en","title":"Oat Milk Company Oatly to IPO -- Here's What Investors Need to Know","url":"https://stock-news.laohu8.com/highlight/detail?id=1126891253","media":"Tiger Newspress","summary":"The largest oat milk company in the world, Oatly, could be going public this weekon Thursday.The Swedish firm is know for its dairy-alternative products made from oats. The items range from basic oat milk, to even ice cream and yogurt made from oat milk. According to its website, Oatly’s goal is “to make it easy for people to turn what they eat and drink into personal moments of healthy joy without recklessly taxing the planet’s resources in the process.”Oatly confidentially filed for its IPO ba","content":"<p>The largest oat milk company in the world, Oatly, could be going public this weekon Thursday.</p><p>The Swedish firm is know for its dairy-alternative products made from oats. The items range from basic oat milk, to even ice cream and yogurt made from oat milk. According to its website, Oatly’s goal is “to make it easy for people to turn what they eat and drink into personal moments of healthy joy without recklessly taxing the planet’s resources in the process.”</p><p>Oatly confidentially filed for its IPO back in February, then officiallyset terms of the move last week. According to multiple outlets, Oatly will offer about 84.4 million American depositary shares (ADS) at between $15 and $17 per share. In total, the Oatly IPO could reach a $10.1 billion valuation, and the firm hopes to raise $1.1 billion.</p><p>Additionally, Oatly plans to trade on the Nasdaq exchange under the ticker “OTLY” and had nine lead underwriters for its IPO.</p><p><b>The majority shareholder</b></p><p>Oatly was founded in 1994 by Rickard Oste, a professor of food chemistry and nutrition in Sweden, and his brother Bjorn Oste. Working in Malmo, Sweden, they developed a way of processing a slurry of oats and water with enzymes to produce natural sweetness and a milk-like taste and consistency.</p><p>Oatly’s image benefited from a roster of celebrity investors, including Oprah Winfrey, Natalie Portman, Jay-Z’s Roc Nation company, and Howard Schultz, the former chief executive of Starbucks. All have some connection to the plant-based or healthy living movement.</p><p>The majority shareholder is a partnership between an entity owned by the Chinese government and Verlinvest, a Belgian firm that invests some of the wealth of the families that control the Anheuser-Busch InBev beer empire. Blackstone, the giant private equity firm, owns a little less than 8 percent in Oatly.</p><p>The company’s growth went into overdrive after Verlinvest bought a majority stake in 2016 via a joint venture with China Resources, a state-owned conglomerate with vast holdings in cement, power generation, coal mining, beer, retailing and many other industries. The new financing helped Oatly to expand in Europe and begin exporting to the United States and China, where many people cannot tolerate cow’s milk. China Resources’ involvement undoubtedly helped open doors in the Chinese market. Asia, primarily China, accounted for 18 percent of sales in the first quarter of 2021, and is growing at a rate of 450 percent a year, according to Oatly.</p><p>In Europe, there is growing alarm about Chinese investment in strategic industries like autos, batteries and robotics. The European Commission has begun erecting regulatory barriers to companies with financial links to the Chinese government. But so far no one has expressed fear that China will dominate the world’s supply of oat milk.</p><p>Just in case, Oatly’s prospectus gives it the option of listing in Hong Kong if the foreign ownership becomes a problem in the United States.</p><p><b>The Key Markets</b></p><p>Oat milk is part of a larger trend toward food that mimics animal products. So-called food tech companies like Beyond Meat have raised a little more than $18 billion in venture funding, according to PitchBook, which tracks the industry. Plant-based dairy, which in the United States includes brands like Ripple (made from peas) and Mooala (bananas), raised $640 million last year, more than double the amount raised a year earlier.</p><p>According to the Plant Based Foods Association and Good Foods Institute, plant-based-food sales reached $7 billion in 2020.</p><p>Consumer Insights data quoted in the prospectus says the plant-based milk category will grow 20% to 25% over the next three years.</p><p>Oatly is focused on its role in helping to transform the food industry in order to be better for the environment and meet the health needs of its customers. The company points out that substituting a cup of Oatly for a cup of cow’s milk reduces greenhouse gas emissions, land use and energy consumption.</p><p>Tastewise, which provides food and beverage data and intelligence, said in a December 2020 report that “plant-based everything” will be one of the top 10 U.S. trends for this year.</p><p>Oatly’s key markets are Sweden, Germany and the U.K., though its products were available in 60,000 retail stores and 32,200 coffee shops around the world as of December 31, 2020. Among the places where customers can find Oatly is Starbucks, where demand was so high there was a shortage soon after the coffee chain introduced beverages made with the item.</p><p>Oatly arrived in the U.S. in 2017. The company says it “focused on targeting coffee’s tastemakers, professional baristas at independent coffee shops” as a way to enter the market.”</p><p>By December 31, 2020, Oatly was in more than 7,500 retail shops and 10,000 coffee shops in the U.S. Revenue in 2020 totaled $100 million in the U.S.</p><p>Oatly can also be found in 11,000 coffee and tea shops in China, and at more than 6,000 retail and specialty shops across the country, including thousands of Starbucks locations.</p><p><b>Loss of Warning</b></p><p>In 2020, Oatly had revenue of $421.4 million, up from $204.0 million the year before. However, the company reported a loss of $60.4 million “reflecting our continued investment in production, brand awareness, new markets and product development,” the prospectus said.</p><p>Oatly is classified as an “emerging growth company,” which means it does not have to make the same disclosures required of bigger public companies. A business remains an emerging growth company until it reaches a number of milestones, including annual revenue of more than $1.07 billion.</p><p>Oatly warns that it has reported losses over the last “several” years and expects operating and capital expenses to rise “substantially.”</p><p>“Our expansion efforts may take longer or prove more expensive than we anticipate, particularly in light of the COVID-19 pandemic, and we may not succeed in increasing our revenue and margins sufficiently to offset the anticipated higher expenses,” the company said in its prospectus.</p><p>“We incur significant expenses in researching and developing our innovative products, building out our production and manufacturing facilities, obtaining and storing ingredients and other products and marketing the products we offer.”</p><p><b>The dairy market is highly competitive</b></p><p>Oatly acknowledged in its offering documents that it faces fierce competition, including from “multinational corporations with substantially greater resources and operations than us.”</p><p>That would include British consumer goods maker Unilever, which said last year that it aims to generate revenue of one billion euros, or $1.2 billion, by 2027 from plant-based substitutes for meat and dairy, for example Hellmann’s vegan mayonnaise or Ben &amp; Jerry’s dairy-free ice cream. Unilever has not announced plans for a milk substitute.</p><p>Some industry analysts argue that Oatly’s size gives it an edge over these giants, allowing it to be more innovative than a corporate behemoth. Food start-ups are “younger and faster,” said Patrick Müller-Sarmiento, head of the consumer goods and retail practice at Roland Berger, a German consulting firm.</p><p>The established food giants also have a tougher time than newcomers convincing consumers that they are sincere about saving the planet, an important part of the oat milk sales pitch.</p><p>Mr. Müller-Sarmiento, the former chief executive of Real, a German chain of big box stores, said meat and dairy alternatives are not having trouble competing with Big Food for precious retail shelf space. “Retailers are urgently looking for new products,” he said.</p><p>Time was when Nestlé or Unilever would have simply acquired Oatly, just as they have gobbled up hundreds of other brands. But they would have trouble justifying the audacious $10 billion price that Oatly has set as the benchmark for its stock offering.</p><p>Nestlé’s answer was to develop its own milk substitute, Wunda, which the company unveiled this month and plans to sell initially in France, Portugal and the Netherlands. Made from a variety of yellow peas, Wunda is higher in protein than oat milk. Some nutritionists have said that oat milk and other dairy alternatives are a poor substitute for cow’s milk because they don’t have nearly as much protein.</p><p>Stefan Palzer, the chief technology officer at Nestlé, took issue with those who say a big company can’t move as fast as a bunch of Swedish foodies. A young team at Nestlé developed Wunda in nine months, including three months of market testing in Britain, Mr. Palzer said in an interview.</p><p>Nestlé was able to adapt existing production facilities to make Wunda, rather than building new factories like Oatly must do. The company already had plant scientists who could identify the best kind of pea and food safety experts who could navigate the regulatory approval process, Mr. Palzer said.</p><p>The Wunda developers “could have any expert they wanted to have on the project,” Mr. Palzer said. “That enabled them to move at this speed.”</p><p>Nestlé already has dairy-free versions of Nesquik drinks and Häagen-Dazs ice cream and sells coffee creamers made from a blend of oat and almond milk using the Starbucks brand. The company is in a major push to develop substitutes for almost any kind of animal product. The next frontier: fish. Nestlé has begun selling a tuna substitute called Vuna and is working on scallops.</p><p>“It’s a great opportunity to combine health with sustainability,” Mr. Palzer said of plant-based alternatives to milk and meat. “It’s also a great growth opportunity.”</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Oat Milk Company Oatly to IPO -- Here's What Investors Need to Know</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nOat Milk Company Oatly to IPO -- Here's What Investors Need to Know\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2021-05-19 14:07</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p>The largest oat milk company in the world, Oatly, could be going public this weekon Thursday.</p><p>The Swedish firm is know for its dairy-alternative products made from oats. The items range from basic oat milk, to even ice cream and yogurt made from oat milk. According to its website, Oatly’s goal is “to make it easy for people to turn what they eat and drink into personal moments of healthy joy without recklessly taxing the planet’s resources in the process.”</p><p>Oatly confidentially filed for its IPO back in February, then officiallyset terms of the move last week. According to multiple outlets, Oatly will offer about 84.4 million American depositary shares (ADS) at between $15 and $17 per share. In total, the Oatly IPO could reach a $10.1 billion valuation, and the firm hopes to raise $1.1 billion.</p><p>Additionally, Oatly plans to trade on the Nasdaq exchange under the ticker “OTLY” and had nine lead underwriters for its IPO.</p><p><b>The majority shareholder</b></p><p>Oatly was founded in 1994 by Rickard Oste, a professor of food chemistry and nutrition in Sweden, and his brother Bjorn Oste. Working in Malmo, Sweden, they developed a way of processing a slurry of oats and water with enzymes to produce natural sweetness and a milk-like taste and consistency.</p><p>Oatly’s image benefited from a roster of celebrity investors, including Oprah Winfrey, Natalie Portman, Jay-Z’s Roc Nation company, and Howard Schultz, the former chief executive of Starbucks. All have some connection to the plant-based or healthy living movement.</p><p>The majority shareholder is a partnership between an entity owned by the Chinese government and Verlinvest, a Belgian firm that invests some of the wealth of the families that control the Anheuser-Busch InBev beer empire. Blackstone, the giant private equity firm, owns a little less than 8 percent in Oatly.</p><p>The company’s growth went into overdrive after Verlinvest bought a majority stake in 2016 via a joint venture with China Resources, a state-owned conglomerate with vast holdings in cement, power generation, coal mining, beer, retailing and many other industries. The new financing helped Oatly to expand in Europe and begin exporting to the United States and China, where many people cannot tolerate cow’s milk. China Resources’ involvement undoubtedly helped open doors in the Chinese market. Asia, primarily China, accounted for 18 percent of sales in the first quarter of 2021, and is growing at a rate of 450 percent a year, according to Oatly.</p><p>In Europe, there is growing alarm about Chinese investment in strategic industries like autos, batteries and robotics. The European Commission has begun erecting regulatory barriers to companies with financial links to the Chinese government. But so far no one has expressed fear that China will dominate the world’s supply of oat milk.</p><p>Just in case, Oatly’s prospectus gives it the option of listing in Hong Kong if the foreign ownership becomes a problem in the United States.</p><p><b>The Key Markets</b></p><p>Oat milk is part of a larger trend toward food that mimics animal products. So-called food tech companies like Beyond Meat have raised a little more than $18 billion in venture funding, according to PitchBook, which tracks the industry. Plant-based dairy, which in the United States includes brands like Ripple (made from peas) and Mooala (bananas), raised $640 million last year, more than double the amount raised a year earlier.</p><p>According to the Plant Based Foods Association and Good Foods Institute, plant-based-food sales reached $7 billion in 2020.</p><p>Consumer Insights data quoted in the prospectus says the plant-based milk category will grow 20% to 25% over the next three years.</p><p>Oatly is focused on its role in helping to transform the food industry in order to be better for the environment and meet the health needs of its customers. The company points out that substituting a cup of Oatly for a cup of cow’s milk reduces greenhouse gas emissions, land use and energy consumption.</p><p>Tastewise, which provides food and beverage data and intelligence, said in a December 2020 report that “plant-based everything” will be one of the top 10 U.S. trends for this year.</p><p>Oatly’s key markets are Sweden, Germany and the U.K., though its products were available in 60,000 retail stores and 32,200 coffee shops around the world as of December 31, 2020. Among the places where customers can find Oatly is Starbucks, where demand was so high there was a shortage soon after the coffee chain introduced beverages made with the item.</p><p>Oatly arrived in the U.S. in 2017. The company says it “focused on targeting coffee’s tastemakers, professional baristas at independent coffee shops” as a way to enter the market.”</p><p>By December 31, 2020, Oatly was in more than 7,500 retail shops and 10,000 coffee shops in the U.S. Revenue in 2020 totaled $100 million in the U.S.</p><p>Oatly can also be found in 11,000 coffee and tea shops in China, and at more than 6,000 retail and specialty shops across the country, including thousands of Starbucks locations.</p><p><b>Loss of Warning</b></p><p>In 2020, Oatly had revenue of $421.4 million, up from $204.0 million the year before. However, the company reported a loss of $60.4 million “reflecting our continued investment in production, brand awareness, new markets and product development,” the prospectus said.</p><p>Oatly is classified as an “emerging growth company,” which means it does not have to make the same disclosures required of bigger public companies. A business remains an emerging growth company until it reaches a number of milestones, including annual revenue of more than $1.07 billion.</p><p>Oatly warns that it has reported losses over the last “several” years and expects operating and capital expenses to rise “substantially.”</p><p>“Our expansion efforts may take longer or prove more expensive than we anticipate, particularly in light of the COVID-19 pandemic, and we may not succeed in increasing our revenue and margins sufficiently to offset the anticipated higher expenses,” the company said in its prospectus.</p><p>“We incur significant expenses in researching and developing our innovative products, building out our production and manufacturing facilities, obtaining and storing ingredients and other products and marketing the products we offer.”</p><p><b>The dairy market is highly competitive</b></p><p>Oatly acknowledged in its offering documents that it faces fierce competition, including from “multinational corporations with substantially greater resources and operations than us.”</p><p>That would include British consumer goods maker Unilever, which said last year that it aims to generate revenue of one billion euros, or $1.2 billion, by 2027 from plant-based substitutes for meat and dairy, for example Hellmann’s vegan mayonnaise or Ben &amp; Jerry’s dairy-free ice cream. Unilever has not announced plans for a milk substitute.</p><p>Some industry analysts argue that Oatly’s size gives it an edge over these giants, allowing it to be more innovative than a corporate behemoth. Food start-ups are “younger and faster,” said Patrick Müller-Sarmiento, head of the consumer goods and retail practice at Roland Berger, a German consulting firm.</p><p>The established food giants also have a tougher time than newcomers convincing consumers that they are sincere about saving the planet, an important part of the oat milk sales pitch.</p><p>Mr. Müller-Sarmiento, the former chief executive of Real, a German chain of big box stores, said meat and dairy alternatives are not having trouble competing with Big Food for precious retail shelf space. “Retailers are urgently looking for new products,” he said.</p><p>Time was when Nestlé or Unilever would have simply acquired Oatly, just as they have gobbled up hundreds of other brands. But they would have trouble justifying the audacious $10 billion price that Oatly has set as the benchmark for its stock offering.</p><p>Nestlé’s answer was to develop its own milk substitute, Wunda, which the company unveiled this month and plans to sell initially in France, Portugal and the Netherlands. Made from a variety of yellow peas, Wunda is higher in protein than oat milk. Some nutritionists have said that oat milk and other dairy alternatives are a poor substitute for cow’s milk because they don’t have nearly as much protein.</p><p>Stefan Palzer, the chief technology officer at Nestlé, took issue with those who say a big company can’t move as fast as a bunch of Swedish foodies. A young team at Nestlé developed Wunda in nine months, including three months of market testing in Britain, Mr. Palzer said in an interview.</p><p>Nestlé was able to adapt existing production facilities to make Wunda, rather than building new factories like Oatly must do. The company already had plant scientists who could identify the best kind of pea and food safety experts who could navigate the regulatory approval process, Mr. Palzer said.</p><p>The Wunda developers “could have any expert they wanted to have on the project,” Mr. Palzer said. “That enabled them to move at this speed.”</p><p>Nestlé already has dairy-free versions of Nesquik drinks and Häagen-Dazs ice cream and sells coffee creamers made from a blend of oat and almond milk using the Starbucks brand. The company is in a major push to develop substitutes for almost any kind of animal product. The next frontier: fish. Nestlé has begun selling a tuna substitute called Vuna and is working on scallops.</p><p>“It’s a great opportunity to combine health with sustainability,” Mr. Palzer said of plant-based alternatives to milk and meat. “It’s also a great growth opportunity.”</p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"OTLY":"Oatly Group AB"},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1126891253","content_text":"The largest oat milk company in the world, Oatly, could be going public this weekon Thursday.The Swedish firm is know for its dairy-alternative products made from oats. The items range from basic oat milk, to even ice cream and yogurt made from oat milk. According to its website, Oatly’s goal is “to make it easy for people to turn what they eat and drink into personal moments of healthy joy without recklessly taxing the planet’s resources in the process.”Oatly confidentially filed for its IPO back in February, then officiallyset terms of the move last week. According to multiple outlets, Oatly will offer about 84.4 million American depositary shares (ADS) at between $15 and $17 per share. In total, the Oatly IPO could reach a $10.1 billion valuation, and the firm hopes to raise $1.1 billion.Additionally, Oatly plans to trade on the Nasdaq exchange under the ticker “OTLY” and had nine lead underwriters for its IPO.The majority shareholderOatly was founded in 1994 by Rickard Oste, a professor of food chemistry and nutrition in Sweden, and his brother Bjorn Oste. Working in Malmo, Sweden, they developed a way of processing a slurry of oats and water with enzymes to produce natural sweetness and a milk-like taste and consistency.Oatly’s image benefited from a roster of celebrity investors, including Oprah Winfrey, Natalie Portman, Jay-Z’s Roc Nation company, and Howard Schultz, the former chief executive of Starbucks. All have some connection to the plant-based or healthy living movement.The majority shareholder is a partnership between an entity owned by the Chinese government and Verlinvest, a Belgian firm that invests some of the wealth of the families that control the Anheuser-Busch InBev beer empire. Blackstone, the giant private equity firm, owns a little less than 8 percent in Oatly.The company’s growth went into overdrive after Verlinvest bought a majority stake in 2016 via a joint venture with China Resources, a state-owned conglomerate with vast holdings in cement, power generation, coal mining, beer, retailing and many other industries. The new financing helped Oatly to expand in Europe and begin exporting to the United States and China, where many people cannot tolerate cow’s milk. China Resources’ involvement undoubtedly helped open doors in the Chinese market. Asia, primarily China, accounted for 18 percent of sales in the first quarter of 2021, and is growing at a rate of 450 percent a year, according to Oatly.In Europe, there is growing alarm about Chinese investment in strategic industries like autos, batteries and robotics. The European Commission has begun erecting regulatory barriers to companies with financial links to the Chinese government. But so far no one has expressed fear that China will dominate the world’s supply of oat milk.Just in case, Oatly’s prospectus gives it the option of listing in Hong Kong if the foreign ownership becomes a problem in the United States.The Key MarketsOat milk is part of a larger trend toward food that mimics animal products. So-called food tech companies like Beyond Meat have raised a little more than $18 billion in venture funding, according to PitchBook, which tracks the industry. Plant-based dairy, which in the United States includes brands like Ripple (made from peas) and Mooala (bananas), raised $640 million last year, more than double the amount raised a year earlier.According to the Plant Based Foods Association and Good Foods Institute, plant-based-food sales reached $7 billion in 2020.Consumer Insights data quoted in the prospectus says the plant-based milk category will grow 20% to 25% over the next three years.Oatly is focused on its role in helping to transform the food industry in order to be better for the environment and meet the health needs of its customers. The company points out that substituting a cup of Oatly for a cup of cow’s milk reduces greenhouse gas emissions, land use and energy consumption.Tastewise, which provides food and beverage data and intelligence, said in a December 2020 report that “plant-based everything” will be one of the top 10 U.S. trends for this year.Oatly’s key markets are Sweden, Germany and the U.K., though its products were available in 60,000 retail stores and 32,200 coffee shops around the world as of December 31, 2020. Among the places where customers can find Oatly is Starbucks, where demand was so high there was a shortage soon after the coffee chain introduced beverages made with the item.Oatly arrived in the U.S. in 2017. The company says it “focused on targeting coffee’s tastemakers, professional baristas at independent coffee shops” as a way to enter the market.”By December 31, 2020, Oatly was in more than 7,500 retail shops and 10,000 coffee shops in the U.S. Revenue in 2020 totaled $100 million in the U.S.Oatly can also be found in 11,000 coffee and tea shops in China, and at more than 6,000 retail and specialty shops across the country, including thousands of Starbucks locations.Loss of WarningIn 2020, Oatly had revenue of $421.4 million, up from $204.0 million the year before. However, the company reported a loss of $60.4 million “reflecting our continued investment in production, brand awareness, new markets and product development,” the prospectus said.Oatly is classified as an “emerging growth company,” which means it does not have to make the same disclosures required of bigger public companies. A business remains an emerging growth company until it reaches a number of milestones, including annual revenue of more than $1.07 billion.Oatly warns that it has reported losses over the last “several” years and expects operating and capital expenses to rise “substantially.”“Our expansion efforts may take longer or prove more expensive than we anticipate, particularly in light of the COVID-19 pandemic, and we may not succeed in increasing our revenue and margins sufficiently to offset the anticipated higher expenses,” the company said in its prospectus.“We incur significant expenses in researching and developing our innovative products, building out our production and manufacturing facilities, obtaining and storing ingredients and other products and marketing the products we offer.”The dairy market is highly competitiveOatly acknowledged in its offering documents that it faces fierce competition, including from “multinational corporations with substantially greater resources and operations than us.”That would include British consumer goods maker Unilever, which said last year that it aims to generate revenue of one billion euros, or $1.2 billion, by 2027 from plant-based substitutes for meat and dairy, for example Hellmann’s vegan mayonnaise or Ben & Jerry’s dairy-free ice cream. Unilever has not announced plans for a milk substitute.Some industry analysts argue that Oatly’s size gives it an edge over these giants, allowing it to be more innovative than a corporate behemoth. Food start-ups are “younger and faster,” said Patrick Müller-Sarmiento, head of the consumer goods and retail practice at Roland Berger, a German consulting firm.The established food giants also have a tougher time than newcomers convincing consumers that they are sincere about saving the planet, an important part of the oat milk sales pitch.Mr. Müller-Sarmiento, the former chief executive of Real, a German chain of big box stores, said meat and dairy alternatives are not having trouble competing with Big Food for precious retail shelf space. “Retailers are urgently looking for new products,” he said.Time was when Nestlé or Unilever would have simply acquired Oatly, just as they have gobbled up hundreds of other brands. But they would have trouble justifying the audacious $10 billion price that Oatly has set as the benchmark for its stock offering.Nestlé’s answer was to develop its own milk substitute, Wunda, which the company unveiled this month and plans to sell initially in France, Portugal and the Netherlands. Made from a variety of yellow peas, Wunda is higher in protein than oat milk. Some nutritionists have said that oat milk and other dairy alternatives are a poor substitute for cow’s milk because they don’t have nearly as much protein.Stefan Palzer, the chief technology officer at Nestlé, took issue with those who say a big company can’t move as fast as a bunch of Swedish foodies. A young team at Nestlé developed Wunda in nine months, including three months of market testing in Britain, Mr. Palzer said in an interview.Nestlé was able to adapt existing production facilities to make Wunda, rather than building new factories like Oatly must do. The company already had plant scientists who could identify the best kind of pea and food safety experts who could navigate the regulatory approval process, Mr. Palzer said.The Wunda developers “could have any expert they wanted to have on the project,” Mr. Palzer said. “That enabled them to move at this speed.”Nestlé already has dairy-free versions of Nesquik drinks and Häagen-Dazs ice cream and sells coffee creamers made from a blend of oat and almond milk using the Starbucks brand. The company is in a major push to develop substitutes for almost any kind of animal product. The next frontier: fish. Nestlé has begun selling a tuna substitute called Vuna and is working on scallops.“It’s a great opportunity to combine health with sustainability,” Mr. Palzer said of plant-based alternatives to milk and meat. “It’s also a great growth opportunity.”","news_type":1},"isVote":1,"tweetType":1,"viewCount":257,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"defaultTab":"following","isTTM":true}