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  • Jamie Adams

Sweet Streams Are Made Of This

Tinder launches its own original content, FedEx are down, WeWork delays its IPO and Seinfeld is on the move. It's the Five on Friday of course!


The Five On Friday is our weekly newsletter covering the investing world's top stories. If you want to subscribe for more great content, simply sign up here!


#AmazonTrust

Amazon has just had an antitrust-sized target painted on its back following a damning report from the Wall Street Journal which suggests that it has been manipulating search results to boost its most profitable products.


What does this mean?

Oh dear, you would think that Big Tech companies could learn from each other. Last week, we reported on Google’s breach of competition laws by manipulating its search engine to suit its own needs and now it seems that Amazon has been doing a similar thing on its own e-commerce platform. The Wall Street Journal report accused Jeff Bezos’ tech giant of adjusting its search algorithms to promote its own in-house products over others. The report suggests that searches on the site will primarily display Amazon’s private label business, which has seen steady growth in recent years. Some might argue that is only natural that Amazon should promote its own products over others, after all, this is what brick-and-mortar stores have been doing for years. The issue here, however, is the effect that it will have on smaller businesses who rely on Amazon’s algorithm to sell their products. By not properly enclosing the nature of the change, Amazon have seriously harmed smaller business chances for its own gain. 


Bet you didn’t know

On average, 1.3 million products are put for sale on Amazon every single day. 


#WeDone

Ok, that’s it, I promise this is the last WeWork news I’ll publish for a while now, because the office-share provider has gone and shelved its IPO until November.


What does this mean?

We will be the first to admit that our obsession with WeWork has probably gotten a little bit unhealthy, but can you really blame us? WeWork owner The We Company has postponed its initial public offering at the behest of its biggest backer SoftBank after a lackluster response from investors to its plans. Since it started its roadshow, the company has seen its valuation plummet from $47 billion in January to a ‘meagre’ $10-12 billion currently. According to the terms of its $6 billion credit line, WeWork needed to raise a minimum of $3 billion in its IPO. However, the company said on Monday that it now only expected to raise a little over $2 billion, forcing management to postpone its plans. Some positive news regarding WeWork’s governance structure, as the board successfully removed some of CEO Adam Neumann’s vice-like grip on the company. Like the rest of you, I really don’t know how the story of WeWork will continue to unfold, but perhaps it’s time to take a little break from Neumann and Co.


Bet you didn’t know

No company has ever appeared on the Five on Friday 3 weeks in a row, but I just can’t help myself. I wonder if I should have a trophy made up?



#FedUp 

FedEx saw its stock price plunge 14% this week, with Wall Street analysts bailing on the stock.


What does this mean?

The world’s most famous shipping company saw its price drop dramatically on Tuesday as its reported earnings missed estimates and the company cut its full-year forecast. The shipping giant has had a rough time of it as of late, with the finger of blame being pointed at the loss of Amazon’s business, trade issues, and foreign business related to integration with TNT Express. However, some analysts believe that the blame lies at the feet of management, who have not yet acknowledged the issues at hand or its own execution failures of the above mentioned problems. Four Wall Street firms have since downgraded FedEx’s stock, including Stifel and Deutsche. The key focus of the company’s management must be have a sharper focus on its key partnerships such as with TNT Express and for its executives to take more responsibility in the success and failure of these initiatives. Should FedEx plan on getting itself back on top in 2020, it will also need to find a new source of revenue to replace the losses from 2019, and Amazon is large hole to fill.


Bet you didn’t know

FedEx actually keeps empty planes in the sky to be able to respond to changing freight demand quickly.


#SwipesCameraAction

Popular dating app Tinder finished up filming its first original content series this week in Mexico, with an eye on the streaming market.


What does this mean?

In last week’s Five on Friday, I discussed how Facebook’s new dating app sought to take Tinder down. Turns out Tinder isn’t some one-trick pony after all and have just wrapped up filming of its first television series. Match Group Inc. owned Tinder’s new multi-episode series centers on an “apocalyptic” storyline with relationship subplots, but reportedly has no direct connections to its core dating app business. Many might be surprised to hear of this diversification of Match Group’s portfolio, but it should come as no surprise to anyone who was aware that Match is majority-owned by IAC, founded by Hollywood legend Barry Diller. With so many U.S.-based tech companies getting into the original content game, one has to simply think; why not? Everyone else is doing it. Tinder will be taking the phrase “Netflix and chill” to a whole new level. 


Bet you didn’t know

Tinder users love music. Users who share the music they’re listening to via Spotify gets 84% more matches than those who do not, so get sharing fellas’!


#AndFinally

Jerry, Elaine, George and Kramer have left 129 West 81st Street and are moving to a new home: Netflix. It was announced on Monday that the world’s leading streaming platform (for now) had struck a deal with Sony Entertainment to allow streaming of all 180 episodes of the 90’s sitcom. The move is the latest in the intensifying streaming wars as platforms and legacy media companies jockey for the rights to popular shows and is also a major comeback for Netflix after the company lost the streaming rights to shows like ‘Friends’ and ‘The Office’. The deal will take the much-beloved show away from Amazon Prime and Hulu and reportedly dwarfs the $425 million that AT&T's WarnerMedia paid for "Friends" and the $500 million NBCUniversal paid for the "The Office." The big takeaway from this story is that streaming platform will still need to heavily invest in acquiring the rights to old, binge-worthy TV series, on top of original content, as seen in the recently proposed reboot of ‘The Office’, despite the original only ending 6 years ago. 


What does this mean?

After only just recouping some of its biggest brands in “Friends” and “The Office”, NBC have lost a big name in Seinfeld, which would have made an excellent addition to its upcoming Peacock streaming service. No soup for you NBC!


Bet you didn’t know

NBC made Jerry Seinfeld an offer that would have made him $110 million for a 10th season of the show. Jerry turned it down. 



The Week In Numbers


320 Tonnes

is how much in single-use plastic waste Burger King will reduce in their new environmental move to remove toys from its menu.


$200 million

is how much worth of oil has been lost in airstrikes in Saudi Arabia.


$16.5 billion

is the reported worldwide investment in industrial robotics last year, with increases in the U.S. and Europe.


MyWallSt operates a full disclosure policy. MyWallSt staff currently hold long positions in Amazon, FedEx, Match Co. and Netflix. Read our full disclosure policy here.

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