Daily Archives

GE is cleaning up their act… by getting rid of their health care, oil and gas, and locomotive businesses – a move that Wall Street loved, by the way. The company has vowed to simplify the business and start tackling that mountain of debt they are sitting atop of. However, as GE tackles one problem others seem to pop-up simultaneously.

GE seems powerless… when it comes to their power and banking segments. GE Power is getting killed by renewable energy’s rapid rise and was recently forced to lay off 12,000 workers. It is safe to say that power is being “challenged” and is unlikely to recover in the near-term. And while GE does have a renewable energy division, it is too small to make up for the company’s other shortcomings.

Aviation should take flight… and sales are expected to soar, led by GE’s LEAP engine. We will also hear more about GE Capital, who disclosed a $6.2B loss in January in the long-term insurance care business. It looks like things will get worse before they can get better.

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World Wrestling Entertainment… usually known simply as ‘WWE’ is up 152% this year and the show may go on. Shares of WWE were up 3% on Friday as Morgan Stanley raised its price target from $58 to $100. They have the momentum, and momentum is what we like to see.

Sticking to what they do best… which is wrestling. Sure, WWE competes in the media and entertainment industry with companies like Netflix and Amazon, but they have the wrestling niche in a chokehold. WWE is taking their niche and focusing on increasing original content, growing their subscriber base, and negotiating new TV deals. Most notably, the company has broadcast deals in the works with both Fox and Comcast.

A word of caution… because yes, WWE stock is killing it – but everything they have going could already be priced into the stock. For example, the stock surged 14% after the TV deals with Fox and Comcast were announced. So be sure to keep an eye on these wrestling maniacs – but try not to get pinned under an overpriced stock.

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On your marks, get set, GO!… Amazon is hosting its fourth Prime Day today beginning at noon PT – but pace yourself because it is a 36-hour shopping marathon this year. As the biggest event yet, Prime Day will be available in even more countries and will include millions of deals. Deals will also be available to welcome Whole Foods to the Prime family, such as a $10 credit when you spend $10 or more from July 11 through 17.

Better than Christmas… for Jeff Bezos and his company which many have predicted will earn about $3.4 billion in revenue and beat last year’s sales by 40%. Impressive numbers, but they represent just six times what a normal day is for the retail giant. More importantly, Amazon would like you to join the club and sign-up for a $119 Prime membership. But be careful because once you get a taste of that sweet free two-day shipping you are unlikely to live life any other way.

And here are the sales numbers… $900M in 2015, $1.5B in 2016, $2.4B in 2017, and an estimated $3.4B in 2018 (if you do your part). Also, last year the company saw a record-high number of free Prime trial sign-ups. With such impressive results, other retailers have been scrambling to create their own special days, including Target who will hold a one-day sale on Tuesday for “everyone – no membership required.” Happy Prime Day – just don’t spend to the point of “Primenesia.”

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