remote, netflix, television-6003839.jpg

Today in the Market (3/1/2024)

Good Morning! On Friday, U.S. equities started March on a positive note in response to PCE data and a continuing surge in the tech sector, with Nvidia (NVDA) reaching the $2 Trillion market cap for the first time.

The S&P 500 and the Nasdaq followed similar momentum and started the month up 0.80% & 1.14%, respectively, while the Dow Jones increased by 0.23%.

LOSING HOPE

Fisker (FSR) said that due to its financial situation, changing dealership sales strategy, and the difficult EV market, it had significant uncertainty about its capacity to remain operational when it submitted its annual financial report for 2023. On top of that, Fisker announced a 15% reduction in its workforce

What will Fisker do? Fisker started negotiating with “a large automaker for a potential transaction which could include an investment in Fisker, joint development of one or more electric vehicle platforms, and North America manufacturing,” Fisker also stated that it is in talks with a current noteholder regarding an additional investment in the company.

Not enough… Even with discussions about receiving financial support and forming a strategic alliance with a well-established auto manufacturer, they did not dispel concerns about Fisker’s unstable situation. The EV company plummeted by more than 32% and has been below $1 since early January.

ROUGH ENVIRONMENT

remote, netflix, television-6003839.jpg

Traditional media is dealing with a dual challenge… Television networks are declining due to a poor advertising environment, which is impacting income, while streaming is not profitable for most companies due to increasing expenses and stagnant subscriber growth.

For example… Paramount (PARA) recently announced that its linear ad revenue decreased by 15% in Q4 compared to the previous year. On top of that, Warner Bros. Discovery (WBD), Disney (DIS), and Comcast (CMCSA) saw a decline in advertising income in their conventional television and cable operations during the same time.

It only gets worse! The number of users discontinuing their streaming subscriptions has nearly tripled since 2019, reaching 140.5 million cancellations in 2023, marking the highest decline in subscribers in the last five years.

The bottom line. Almost all media businesses are still operating at a financial loss in that sector; except Netflix and, more recently, Warner Bros. Discovery.

Scroll to Top

Where Are You On Your Investment Journey?

Rise

Run

Relax

All investors are unique.  The above characteristics are examples, but may not reflect your particular investor demographics or situation.  An advisor with Edgar Investment Management, LLC will assist you with finding the best type of account for you. 

Investment advisory services are offered through Edgar Investment Management, LLC, an investment advisor registered with the State of Texas. Edgar Investment Management, LLC only offers investment advisory services where it is appropriately registered or exempt from registration and only after clients have entered into an investment advisory agreement confirming the terms of engagement and have been provided a copy of the firm’s ADV Part 2A brochure document.

The content found on this website is developed from sources we believe provide accurate information and is for educational purposes only. The information on this website is not intended as tax or legal advice. Everyone’s tax and legal situation is different, so please consult trusted and knowledgeable legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided on this website are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Material and information found on this website is not intended as an offer or solicitation for the sale or purchase of any specific security, mutual fund, ETF, bond, or investment strategy.  

Investing is risky!  No guarantee as to performance of any investment is implied by this website.  Make sure you have evaluated your options and spoken with trained professionals before you implement any investment strategy.  Past performance is not indicative of future results.  

Please be advised that Edgar Investment Management, LLC is a financial advisory firm specializing in investment management and financial planning services. We do not offer or provide any CPA-related services, including tax preparation, tax planning, or other accounting services. If you require assistance with tax-related matters, we recommend consulting a qualified CPA or tax professional who can provide specialized advice tailored to your individual needs.

Edgar Investment Management, LLC is not a Public Accounting firm.

 

Contact Us

Name
Best time(s) to contact you?
Best method(s) to contact you?

Contact Us

Name
Best time(s) to contact you?
Best method(s) to contact you?

We would love to hear from you! Please fill out this form and we will get in touch with you shortly.

  • About You

    Tell us a little about yourself. Don't be shy. Let's be friends.
  • How Can We Reach You?

    We would love to chat with you. How can we get in touch with you?
  • What's on your mind?

How much do you want to invest?