Ouch
The stock market has crashed! Why?
Why have these stocks dropped so much?
Do you think they will recover?
Netflix - down 72.5%
For the first time Netflix lost subscribers (200,000) in a quarter. Why?
They expect to lose about 2 million more in the next quarter.
competitors
inflation
the price rose by 15% in January
Do you feel there’s a difference between Apple TV Plus, Netflix, Hulu, Amazon Prime and Disney?
Do you think these are good ideas?
Netflix plans to…
cut costs - by cancelling unpopular shows even if they have good reviews
crack down on password sharing
maybe add a cheaper plan with ads
offer a streaming video game service
Netflix has missed their Japan target for many years. What should Netflix do to increase subscribers in Japan?
Nanox Imaging - down 70.9%
Pros:
They plan to give their machines to hospitals for free and charge $40 per X-ray.
Traditional machines are about half a million dollars and $300 per scan.
They have over 6,500 orders already
Originally developed by Sony, who dropped the project and the researchers decided to make their own company
The machine is being used in a hospital in Israel
Should I invest in this company?
Cons:
only 25 employees
has no income so far
hasn’t received FDA approval for it’s machine
Should I invest in this company?
Almost all High risk unprofitable companies have dropped the most during the stock market crash
What company do you wish you had invested in 10 years ago?
Sea Limited - down 79%
Sea Ltd started as an mobile game company. It’s Battle Royale game is one of the most popular games in South East Asia, India and Latin America.
Bigger companies have very similar games. How did Sea do so well in these markets?
phone and internet quality
game size (600mb vs 2gb)
graphics
number of characters
The company also incorporated local festivals and sponsored local celebrities to appear in games
It’s 2nd business is SHOPEE. A budget online retailer.
Amazon started by selling books. Why was this a smart idea?
What products should Shopee focus on first?
Are these strategies good ideas?
Shopee decided to focus on beauty and fashion products. They believe young women are trendsetters
Shopee offers sellers zero commissions at first (because it’s gaming business makes lots of money)
They hired many local and international celebrities to be in ads (Jackie Chan, Ronaldo, Black Pink). It’s rivals didn’t do this.
To protect customers Shopee will often withhold payment to sellers until the customer has confirmed delivery of their product
After Shopee became successful, their rival hired Hyun Bin as their celebrity sponsor.
Which celebrity is more popular in South East Asia?
Why do you think the stock down?
Sea suddenly left India 6 months after entering the market. Why do you think it pulled out?
Chinese apps are now banned in India. 18% of the company is owned by Tencent
Why did India decide to do this?
The Indian government believes Chinese apps:
censor anti-China content
pays influencers to be positive about China
shares user data with the Chinese government
Should Japan also ban Chinese apps (like Tiktok)?
Do you think Shopee can be popular in Japan?
Roblox - down 73.8%
Roblox makes simple free games for kids between 8 and 13.
Anyone can make and upload a game - costs are low
It makes money buy selling items
Players can chat to each other and recently voice chat
Reasons for the drop:
In Asia DAU’s rose 101%. DAUs in the U.S. and Canada declined slightly year over year in the last 4 quarters of 2021.
Why did the stock drop?
Why were more North Americans playing in 2020?
Roblox was excited to enter the Chinese market. At the start of 2022, Roblox shut down it’s app in China. They need to change the game because China’s new law makes game companies limit children under 14 to 40 minutes of playing time per day.
Should Japan make a similar rule?
Puma, Gap, Nike and Forever 21 have recently made stores in Roblox to advertise to kids. Other brands will probably do this in the future.
Some people think this is one of the best METAVERSE stocks. Do you agree?
Is it a good time to invest in Roblox?
Disney - down 41.5%
Why do you think Disney’s stock has fallen?
films
parks - Tokyo, Florida, Shanghai, Hong Kong
Some analysts believe Netflix’s stock price drop also affected Disney. The video streaming market is more competitive and in a recession people won’t want to pay for this service.
What advantages does Disney have over Netflix?
If inflation continues, will people cancel Disney Plus to save money?
How do you think Disney’s parks have changed since the pandemic?
price
staff numbers
number of guests
guest satisfaction
Their biggest strength is Disney Plus. It launched at the end of 2019.
Number of Subscribers at the end of 2021:
Hulu - 45 million
Amazon Prime Video - 200 million
Netflix - 221.8 million
Disney plus is the newest service. It launched in November 2019. How many subscribers do you think Disney + has?
Disney has 130 million subscribers globally. They are still increasing their price every year.
“Don’t say Gay Bill”
In March 2022 the Republican governor of Florida created a new law that stops schools discussing any LGBTQ issues under the age of 7.
For older kids the topic must be age appropriate. Parents can now sue the school if the issue is taught inappropriately.
This means teachers can’t say if they’re gay. Kids with gay parents aren’t allowed to talk about them publicly.
Disney was a donor to the Florida government but decided to oppose the new law by refusing to donate any money to the government until it’s removed.
How do you think the Governor reacted?
The governor removed Disney World’s special tax status it’s had for over 50 years. Disney taxes itself and provides all government services for the 39 square miles it manages
sewer and water system
police
fire fighters
roads
building permits
Now Disney will have to pay more taxes to the government but the government must provide all these services.
Should Disney have kept quiet about Don’t Say Gay?
Zoom Video - down 72.6%
What is Zoom?
The stock price rose 444% in 2020. Why?
How does it make money?
Zoom has a FREEMIUM model. You can use it for FREE but you need to pay for PREMIUM services
Now non-paying users will see ADS after their meetings
Why do you think zoom could overtake older rivals like Skype and Teams?
At the start they provided…
higher quality video
more members (1000 vs 100)
special functions (like chat, surveys. SNS streaming and screen sharing)
Teams offers more services so slows down more if the internet is slow
Also the offered a special service for FREE to schools and universities at the start of the Pandemic. Of course they also provided training videos for students, parents and teachers on how to use the service
Why was this a good idea?
Pros
In 2022 their revenue increased 50% YOY
they are offering new services so customers are spending more money
Cons:
The number of users has decreased as people return to the office and schools
Microsoft is a richer rival
Is Zoom a good investment?