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News for investors20.12108
Bundle of investment news: Spider-Man and Oracle
Spider-Man Saves Cinemas, and Oracle buys Cerner.
Disclaimer: when we talk about, that something has grown, we mean a comparison with the same quarter a year earlier. Since all issuers are from the USA, then all results in dollars. When creating the material, sources were used, inaccessible to users from the Russian Federation. We hope, Do you know, what to do.
"Person, but the spider - without it, we are all without hands ": new Marvel movie brings hope to cinemas
New movie Marvel Cinematic Universe Spider-Man: no way home "collected for the first 4 days of rental 253 million dollars - which in general is an absolute record of the era of a pandemic and very cool even in comparison with the indicators of the "pre-war" era. Better than the third "Spider" in the history of the American box office were only "The Avengers": war of infinity "in 2018 with fees of 258 million for 4 of the day and the Avengers: final" in 2019 with 357.1 million.
First 4 of the day, including weekends, are considered decisive in the film industry - according to the indicators of the first days, one can understand, What is the audience's interest in the film?: the more fees these days, the better the final result will be. It is already visible, that "Spider" will be an undoubted success.
These news carry with them as good, and not very good conclusions for issuers in different industries.
For cinema chains like AMC and Cinemark, tactically, this is a plus.: fees, in fact, at the pre-coronavirus level, that this quarter for these companies will be at least better than expected. It's hard to say what they will have in the next half of the year.: new strains of coronavirus and restrictions on the level of filling the halls will hang weights on the cinema business for a long time, and super hits like "Spider" still do not come out every day.
For Disney, who made this film, Spider's success would mean some positive for accountability, and it shows, that its content remains highly sought after. That is why its film and series business can count on stable demand - which, certainly, very good in the context of developing her own Disney+ streaming service. But here we come to the negative.
The production of the third "Spider" cost Disney a tidy sum - $ 200 million. It is very very expensive. Also the new film is worth, in Newton's words, "on the shoulders of giants": he's part of a very big franchise, loyalty of the audience which has been cultivated for a very long time by a large number of other expensive films, the same "Avengers", for example. Cinema has become very expensive to produce. And the risks here are very high and success is by no means guaranteed..
For example, Disney+ series Hawkeye from the same universe, with a large budget of $150 million, performed very poorly in terms of views compared to other Disney+ series - and here is the big question, how much will it pay for the service. Film content production costs are on the rise, despite the fact that the risks of failure do not fall at all and even grow: the viewer went very moody.
Maybe, against the backdrop of the success of Spider, all studios will begin to spend intensively on the production of expensive blockbusters, which will lead to inflation and an increase in the cost of labor in this area. After all, there are not so many suitable specialists in effects and decorations., Yes and charts filming with cities and pavilions is not so easy to coordinate. Therefore, if the number of simultaneously filmed blockbusters increases, then the “average price for a hospital” for their production will also increase.
Using the example of Venom-2, we have already analyzed possible ways to save money for studios. But all the methods we are discussing - attracting specialists from the Old World and other parts of the planet and buying up new intellectual property on the cheap - are more than a palliative., rather than solving the problem. Star royalties and overhead costs rise despite efforts.
This is also a problem for streaming companies like Netflix.: her most popular action movie, Red Notice, cost as much as $160 million.. And the stakes are only rising: Netflix's Unreleased Thriller 'The Gray Man' Is Worth About $200 Million.
I do not think, that the rising cost of content production will kill streaming business, but investors should still mentally prepare for the, that the marginality of these services will mark time for a long time. Attracting and retaining subscribers will require hecatombs of money, no less impressive, than in the case of cinemas.
Recognition machine: Oracle buys medical IT company Cerner
IT giant Oracle (NYSE: ORCL) plans to buy high-tech medical business from Cerner (NASDAQ: CERN) for $ 30 billion - at a price of about 95 $ per share. In this way, if the deal goes through, then Cerner will be bought at a premium 35% to the price of its shares, and this is 70 $ per piece at the time of the appearance of the first messages about a possible purchase.
Cerner's business looks like this:
- Licensed Software - 12%. Selling data, algorithms, applications and other company software.
- Technology Resales — 3%. Reselling software from other companies, as well as foreign computer equipment.
- Subscriptions - 7%. Use of the company's software by its customers on a subscription basis.
- Professional Services - 35%. These are consulting and management services in the field of implementation of IT solutions, which Cerner provides to its clients.
- Managed Services - 23%. Cerner services for clients in the field of server management outsourcing.
- Technical support and maintenance - 19%. Services as for those, who uses Cerner software, so for those, who uses software from other companies.
- Reimbursement of transport costs — 1%. This segment is a formality: Cerner customers reimburse company travel expenses.
In the USA, Cerner makes 89% proceeds, and 11% in other countries. Cerner specializes in servicing healthcare businesses.
It cannot be said, what Cerner shows in recent years space growth rates: Coronacrisis has disrupted healthcare operations, leading to the cancellation and postponement of many of Cerner's contracts. But, On the other hand, its business is quite stable and stable - which in itself is a big plus.
Can't say for sure, that Oracle buys Cerner cheaply: Cerner buy with P / S above 5, a P / E she generally has about 53. But for Oracle, for which it is the most expensive purchase in history, Acquisition of Cerner serves both the development goals of its own cloud division, where she tries to close the distance between herself and Microsoft with Amazon, and the goals of expanding its presence in the field of medicine.
Purchase of Cerner, If she, certainly, will take place, This is good news for all the overvalued startups in the medical field., because then someone can buy them too.
What about Oracle, it's hard to say: here the result can be seen only after a couple of years of work with Cerner. But this purchase does not help reduce Oracle's debt burden., whose total liabilities already exceed $ 116 billion. So if I were Oracle shareholders, I would, maybe, and didn't panic, but still showed some skepticism about the appropriateness of this deal.
