Pink's Bottom Line on Media, Money and Sports
YouTube advertising, Amazon earnings and Super Bowl prop bets
In today’s newsletter, I discuss YouTube advertising, Amazon’s earnings and some fun Super Bowl prop bets.
MEDIA: YouTube Advertising
Alphabet, the parent company of Google and YouTube, reported strong quarterly earnings Tuesday.
YouTube advertising helped lead the overall company to that strong quarter as revenue from YouTube ads grew to $6.89 billion last quarter, a 47% gain compared to the same period a year ago.
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While video streaming services have commanded a lot of attention recently because of their extraordinary growth, YouTube remains a juggernaut in digital video.
YouTube also relies mostly on advertising revenue unlike most video streaming services that derive all or the bulk of their revenues from subscriptions.
The growth of YouTube revenue last quarter is also the latest indication that companies are shifting to digital advertising over traditional advertising — and that shift looks like it will continue.
MONEY: Amazon and E-Commerce
When Amazon reported its quarterly earnings last night, news that CEO Jeff Bezos plans soon to step down from his role as CEO and become Executive Chair understandably dominated the headlines.
However, that Bezos news might have overshadowed the company’s terrific quarter as Amazon’s earnings report revealed again the strength of the company’s overall business.
Pink's Bottom Line
Revenue topped $100 billion in the fourth quarter, the first time that revenue has hit that level in a single quarter.
Notably, Amazon’s e-commerce sales soared again last quarter — and throughout all of 2020 — thanks to an increase in online shopping as so many stayed at home because of the coronavirus pandemic.
That’s another sign that the coronavirus pandemic, which has accelerated many trends in the past year, has truly accelerated consumer acceptance of e-commerce and online shopping.
SPORTS: Super Bowl Prop Bets
Americans love to gamble on just about anything related to the Super Bowl, and there are a host of fun proposition bets — called “prop bets” for short — that are available.
A prop bet is essentially a wager on anything other than the outcome or point spread of the game itself. For example, a prop bet can be on something as simple who wins or loses the coin toss.
So, I checked FanDuel Sportsbook to review prop bets on this year’s Super Bowl. Here are a few that I found interesting.
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First, there’s a prop bet on whether or not a player will be ejected from the game. It’s +360 to bet that someone will be ejected, according to FanDuel.
Second, there’s a bet on whether or not a field goal or an extra point attempt will hit an upright. It’s +450 to bet on that happening, according to FanDuel.
Finally, there’s even a bet on whether the first offensive play of the game will result in a safety. It’s +10000 to wager on that, according to FanDuel.
I’ll give my prediction on the game itself in tomorrow’s newsletter.
Jeremy Pink is currently COO of Geniecast, a leading virtual content and experience company. He is the former CEO of private-equity backed Broadcast Sports International where he helped lead the company to a successful sale and exit during his tenure there. He is also a former CNBC television executive in New York, London and Singapore.
The information contained in this communication is strictly for general informational and entertainment purposes and is not meant to be construed as financial, investment, tax, or legal advice. This communication is not a solicitation to buy or sell any securities. I am not a financial advisor or offering professional advice of any kind. Users should not act upon the content or information found within this communication without first seeking professional advice appropriate for their individual situation. Decisions based on information contained in this communication are the sole responsibility of the user, and use of this communication and its contents constitutes an explicit understanding and acceptance of the foregoing disclaimers.
(Newsletter Editor: Karina Pink)