Category Archives: Digital Lifestyle

Experience-driven shopping and entertainment redefining the American Shopping Mall

Experience-driven shopping and entertainment redefining the American Shopping Mall

This article in the Wall Street Journal talks about the new mall, one driven by our need and desire for an experience, even when shopping. It’s no longer about price or selection when you head the mall, it’s about the experience when you’re there. In our thematic world, this is an extension of the Content is King thematic that shows those experiences that engage us a consumers we will pay for.

After all, with literally everything you need at the push a button thanks to Amazon Prime and other online retailers, it takes more to get us off the couch and trek over and search for a marketing space than a 50% off coupon at Macy’s.

Landlords are nudging out the once-coveted big box chains in favor of sporting-goods retailers, fast-fashion chains, supermarkets, gyms, restaurants, movies theaters and other types of entertainment as they seek to keep their properties relevant in an age increasingly dominated by online shopping.

Source: Mall Owners Push Out Department Stores – WSJ

Continued market uncertainty after Brexit has us tightening up our positions

Continued market uncertainty after Brexit has us tightening up our positions

While we did come in from the beach long-enough last week to share our views on the Brexit vote, it’s good to be back in the saddle full-force with this week’s Tematica Investing.  So let’s get right down to it . . .

In this week’s Tematica Investing:

  • Renewed Brexit fallout uncertainty and Italian banking concerns have tipped the market mood back to cautiousness. Recent earnings have been disappointing and likely set the stage for what is to be a challenging June quarter earnings season. We remain very comfortable with the Tematica Select List holdings given the mix of defensive business models and thematic tailwinds.
  • We are adding iShares Barclays 20+ Yr Treasury Bond ETF (TLT) shares to the Tematica Contender List and look to revisit the shares closer to $134-$135.
  • We are boosting our price target for AT&T shares to $45 from $42 and raising our protective stop loss to $39 from $36. We will continue to keep T shares on the Tematica Select List, but we would not recommend adding to your T shares at current levels.
  • We are also raising our price target and protective stop loss for our Physicians Realty Trust (DOC) shares. Our new price target is $25, up from $18, and our new stop loss is set at $18, up from $16. Much like T shares, we will continue to keep DOC shares on the Tematica Select List, but advise against committing fresh capital at current levels.
  • Nike (NKE) reported quarterly earnings last week, which were essentially in line. As expected the liquidation sales at Sports Authority and Sports Chalet will be a short-term disruption, and we continue to like the shares given our longer-term perspective. We continue to have a Buy on NKE shares and our price target remains $66.

Click the link below to download the full report.

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Safety & Security in the skies is more than TSA screening

Safety & Security in the skies is more than TSA screening

 

We all want more and more of the comforts of home when we’re in the skies, including the ability to connect with work and friends, or continue to consume content at blistering paces — drivers of our Content is King and Connected Society thematics . Unfortunately, those connections in today’s world can also be an open door for those up to no good — best case unleashing viruses and hacks into our devices, or worst used to actually harm the plane.  The airline industry is responding to this Safety & Security thematic playing out in the skies:

As aircrafts become ‘smarter’ and more connected, the chances of them being hacked increases, so it’s right that IT bosses are focusing on cybersecurity.

Source: Security the Winner as Airlines Plan Big Investments – Infosecurity Magazine

Despite shifting polls, investors await Thursday’s Brexit vote

Despite shifting polls, investors await Thursday’s Brexit vote

With yesterday being the summer solstice — the day on the calendar with the most daylight for those in the Northern Hemisphere — we put those extra minutes to good use and finished up this week’s issue of Tematica Investing a day early!

The stock market teeter tottered this past week as its focus shifted from the June Fed meeting to the pending June 23 Brexit vote. Brexit polls have moved back and forth favoring “Stay” then “Leave” then “Stay” again, ping-ponging the degree of uncertainty. As we know, the stock market abhors uncertainty and has responded in kind based on the latest Brexit poll.

In this week’s Tematica Investing:

  • Past the Brexit vote, we will soon have June quarter earnings upon us and that means the coming days may feature earnings pre-announcements. Given these two events we intend to sit on the sidelines until after the July 4th holiday when the we should have a much clearer picture of things.
  • We have complete review of the Tematica Select List, and given the sheer size of those updates we are holding back with Ask Tematica this week. Included in these updates are tweaks to our positions in AT&T (T), PetMed Express (PETS) and Physicians Realty Trust (DOC)Read More >>

Your next issue of Tematica Investing will be published on July 6th as we take a needed break to recharge ahead of the upcoming earning season. Rest assured, should circumstance dictate the need to take action, we will be sure to issue a detailed special alert via email to all active subscribers.

Click the link below to download the full report.

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Follow the Money: Advertisers adapting to new reality of distracted consumers

Follow the Money: Advertisers adapting to new reality of distracted consumers

 

The realities of the Connected Society and Content is King thematics are that consumers are ignoring the ads that are essentially funding the content they are consuming on their phones, tablets, laptops and TV’s around the world.  As made famous in the 1976 movie All the President’s Men, when you really want to know what’s going on “Follow the Money”:

As the global marketing industry gathers on the French Riviera for the Cannes advertising festival this week, there is an awareness that grabbing consumers’ attention is getting harder and more frustrating across nearly all types of media. People are avoiding print ads, skipping through TV ads and cutting cable subscriptions. Reaching them online is getting tougher, too, between the rising use of ad blockers and the many scams in which fake, computer-generated web traffic lures in ad dollars.

As a result, companies are rewriting their marketing playbooks. Some are blurring the line between advertising and content, in the hopes of passing through the filter of what consumers actually see and read. Others are diving deeper into data and location targeting on the theory that consumers will embrace ads that they find relevant.

Source: Advertisers Try New Tactics to Break Through to Consumers – WSJ

A look behind the curtains at Netflix ($NFLX) and what’s at stake with our Content is King thematic

A look behind the curtains at Netflix ($NFLX) and what’s at stake with our Content is King thematic

At over 6,000 words, this piece by Joe Nocera of the New York Times isn’t a quick read . . . but it’s worth taking the time!  The Content is King thematic we use at Tematica focuses on the epic battle being fought from all angles — from Disney (DIS) to Netflix (NFLX) to Amazon Prime (AMZN) and dozens of others — each hoping to grasp a moment of our attention in our hyper-stimulated world. Throughout this article you get a sense of just what’s at stake and who the players are:

Just because Netflix had essentially created this new world of internet TV was no guarantee that it could continue to dominate it. Hulu, a streaming service jointly owned by 21st Century Fox, Disney and NBC Universal, had become more assertive in licensing and developing shows, vying with Netflix for deals. And there was other competition as well: small companies like Vimeo and giants like Amazon, an aggressive buyer of original series. Even the networks, which long considered Netflix an ally, had begun to fight back by developing their own streaming apps.

Source: Can Netflix Survive in the New World It Created? – The New York Times

Disney Seeks to Cater to China’s Growing Middle Class

Disney Seeks to Cater to China’s Growing Middle Class

Rising disposable incomes in the emerging economies and especially in China have led to a trade up in diets, a thirst for the branded products and now travel and entertainment. This is already starting to influence content decision at the major movie studios and airline destinations,  and this will only accelerate as the influence grows.

Walt Disney Co. has hosted over 600,000 visitors at its first theme park in mainland China since trial operations started early May, and its “enormous potential” has already prompted Disney to expand the resort, said Chief Executive Officer Robert Iger.

The government has predicted China’s $610 billion tourism industry will double by 2020, spurred by a growing middle class. DreamWorks Animation SKG Inc. plans to open its $2.4 billion DreamCenter and Haichang Ocean Park Holdings will unveil what’s slated to be China’s biggest marine park next year. Six Flags Entertainment Corp. is due to open its first park outside North America in 2019.

Source: Disney Sparks Theme-Park Battle to Entertain China’s Middle Class – Bloomberg

As fear eclipses greed in the market, we make a move on an Asset-Lite play

As fear eclipses greed in the market, we make a move on an Asset-Lite play

Over the last week, we’ve seen quite a shift in investor sentiment — fear and worry has come to the forefront, eclipsing greed. We dug into this data earlier this week in the Monday Morning Kickoff, but the needle has only moved further toward fear in the last few days.

In this week’s edition of Tematica Investing, here is what you’ll find:

  • Brexit fears and the growing realization that there indeed is a disconnect between the current stock market valuation compared to global growth and earnings expectations has led to a sentiment shift in the market over the last week. Read More >>
  • Chipotle Mexican Grill (CMG) shares passed through our $390 protective stop, removing them from the Tematica Select List, but we are adding them back to the Tematica Contender List. Read More >>
  • We are issuing a BUY rating on Alphabet (GOOGL) shares and putting them on the Tematica Select List as part of our Asset-Lite investing theme. Our target price is $880, and we would be comfortable adding to the position up to $760. Because this is a new long-term position, we are not setting a protective stop loss at this time as we expect to scale into the position in the coming month. Read More >>
  • Digging into the May Retail Sales data that was good for our Amazon (AMZN), Nike (NKE), PetMeds Express (PETS) and Physicians Realty Trust (DOC) shares. Read More >>
  • Ask Tematica – What’s the 411 on Good-Till-Canceled Orders? Read More >>

 

Click the link below to download the full report

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Experience Economy now at your local grocery store . . . 

Experience Economy now at your local grocery store . . . 

We’ve written a lot about how the Content is King and Connected Society thematics are creating the drive towards an experience-driven economy. Consumers are moving away from the American shopping mall to entertainment centers, while buying the stuff they need online through the Amazon’s of the world and the like. This article from the Wall Street Journal shows that the same phenomenon is starting to appear at the most local of all shopping experiences, the local grocery store.

 

Under growing pressure from discounters and online rivals, some grocery stores are offering Zumba classes or peppermint foot scrubs to transform themselves into places where customers might want to hang out rather than just grabbing groceries and heading home.

Source: Attention Shoppers: Yoga in Aisle 3 – WSJ

Just Eats’s app on Apple TV  signals more changes coming to how consumers use TV

Just Eats’s app on Apple TV  signals more changes coming to how consumers use TV

Apps are starting to blur the lines between smartphones and smartTVs, like AppleTV. From shopping to gaming, we are starting to see a more profound change beyond streaming and placeshifting for how consumers will use their TVs. 

Buoyed by its $2.45 billion IPO two years ago, Europe’s answer to GrubHub is alive and kicking in 15 markets across Europe, the Americas, and Oceania, and today the London-based company is lifting the lid on a handful of new initiatives designed to make it easier for families and friends to order food for delivery.

Now Just Eat is rolling out what it’s touting as an “industry-first” group-ordering feature on Apple TV and its first dedicated app for smart TVs.

In addition to its new Apple TV app, Just Eat says it is also committing to the broader TV realm and will be introducing apps for multiple smart TV brands within the next few months. But before that, it will launch an app for Amazon Fire TV, though as you may have guessed this won’t sport the same collaborative ordering features as the Apple TV app — it will just let people see the menu and the basket on the big screen.

Source: Just Eat is using Apple TV to make online food ordering truly collaborative | VentureBeat | Apps | by Paul Sawers