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Netflix, Amazon, Akamai Benefiting From Cable Cord-Cutters

Interest in cable TV cord-cutting and cord-shaving is on the rise, according to a new survey by Robert W. Baird & Co. In its semiannual video trends survey, 51% of respondents said they are considering canceling or reducing their pay TV service. That’s up from 47% in Q3 2015 and 46% a year ago, Baird analyst William Power said in a research note Wednesday. “Consistent with our past surveys, price remains far and away the No.1 dissatisfaction with traditional cable service, followed by streaming alternatives and paying for more channels than you need, all of which feed the OTT (over-the-top TV) opportunity,” Power said. Netflix ( NFLX ) remains the clear leader in the Internet streaming-video market, but Amazon.com is gaining fast, Power said. Almost half of Netflix subscribers said they view Netflix as a substitute to traditional TV, though 82% of Netflix subscribers still subscribe to cable or satellite. Survey respondents picked “Orange Is the New Black” as the most-watched Netflix original show, followed by “House of Cards,” “Making a Murderer,” “Daredevil” and “Narcos.” Baird surveyed 1,300 U.S. Internet users, which skewed the results toward younger consumers. Roughly 15% of those surveyed were cord-cutters or cord-nevers who didn’t subscribe to traditional pay TV services. “Due in part to the online nature of our survey and its bias toward a younger demographic, Netflix penetration of 75% of respondents is much higher than Netflix’s actual U.S. household penetration of close to 50%, and we expect Amazon ’s ( AMZN ) penetration of 52% of our sample is also significantly higher than actual,” Power said. Netflix penetration in the first quarter was unchanged from the Q3 2015 survey. But the Amazon Prime subscriber rate of 52% was up from 45% six months ago, Baird said. Akamai Technologies ( AKAM ), a leading enabler of streaming services, “should be well positioned to benefit from increased streaming,” Power said. Power rates Netflix stock neutral and Akamai stock outperform. He does not have a rating on Amazon. Akamai stock rose 2.1% Wednesday and Netflix stock rose 1.5%, while Amazon shares fell a fraction.

Comcast, Charter, Altice Cable Swaps Eyed After Deal Approvals

Charter Communications ( CHTR ) is moving closer to gaining federal regulators’ approval for acquiring Time Warner Cable ( TWC ) — a deal that could set the stage for assets swaps among cable TV firms, including  Comcast ( CMCSA ), analysts say. The Federal Communications Commission reportedly is set to greenlight the Charter-TWC merger, with conditions, though the deal is still being studied by California’s state regulators. Charter stock rose to just shy of a record high on the report. Regulators thwarted Comcast’s proposed purchase of TWC in early 2015. Europe-based Altice Group , however, expects to gain approval for its purchase of Cablevision Systems ( CVC ) in May, the company said. Altice earlier acquired Suddenlink Communications. If both the Charter-TWC and Altice-Cablevision deals sail through, cable TV firms are likely to explore asset swaps of cable systems in different markets, says a Barclays research report. “Post the completion of pending cable deals, there is some likelihood of potential asset swaps between the remaining distributors to align footprints more closely and extract more in synergies,” said Barclays. “While the regulatory push-back is fair to consider in this instance, we note that the FCC has concluded in the past that pro-competitive effects of clustering of cable systems tend to outweigh the negatives.” Even if the FCC approves the Charter-TWC merger, California’s OK might not come until late May, analysts say. Charter also plans to buy privately held Bright House Networks. Netflix ‘s ( NFLX ) support has smoothed the path for Charter’s deals, analysts say. Both TWC and Cablevision offer services in the New York City area, a big market. RBC Capital says the FCC might still be opposed to any sizable acquisitions by Comcast, the nation’s No. 1 cable TV firm. Comcast also owns NBCUniversal. “Comcast would be unlikely to be allowed to acquire a major cable firm or programmer, but could acquire long-distance assets, a wireless operator, or could engage in clustering and swaps with other cable operators,” RBC analyst Jonathan Atkin wrote in a recent research report. Charter stock rose 6% in the stock market today , to 198.16. Charter peaked at 199 last March. Time Warner Cable stock rose 3.3% Wednesday.

3 Best-Ranked BlackRock Mutual Funds To Boost Your Portfolio

BlackRock Inc. is the world’s largest asset management corporation with over $238 billion worth of assets under management (excluding money market assets). It caters to institutional, intermediary and individual investors through a wide range of products and services. It offers a range of risk management, strategic advisor and enterprise investment system services. BlackRock’s offerings range from individual and institutional separate accounts to mutual funds and other pooled investment options. In order to strike a balance between risk and opportunities, BlackRock aims to provide a wide range of investment solutions to its clients. Below, we share with you three top-rated BlackRock funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. BlackRock Small Cap Growth Equity Portfolio A (MUTF: CSGEX ) invests a major portion of its assets in equity securities of small capitalization domestic companies. According to CSGEX’s advisors, companies with a market cap similar to those included in the Russell 2000 Index are considered small-cap firms. CSGEX may also participate in IPO markets. The fund has a three-year annualized return of 4.7%. Travis Cooke is the fund manager of CSGEX since 2013. BlackRock California Municipal Opportunities Fund A (MUTF: MECMX ) seeks income exempt from Federal and California income taxes. MECMX invests a large portion of its assets in California municipal bonds. The fund invests a least half of its assets in investment-grade securities. MECMX may also invest a maximum of half of its assets in non-investment-grade bonds. The fund has a three-year annualized return of 3.6%. As of January 2016, MECMX held 147 issues with 2.69% of its assets invested in California St For Previous Iss Go Ref 5%. BlackRock GNMA Portfolio A (MUTF: BGPAX ) invests the majority of its assets in Government National Mortgage Association (“GNMA”) securities. BGPAX purchases securities that are rated in the highest rating category (AAA or Aaa) during the time of purchase by at least one major rating agency. The fund has a three-year annualized return of 1.7%. BGPAX has an expense ratio of 0.91% as compared to the category average of 0.93%. Original post