Pink's Bottom Line on Media, Money and Sports
Conan O'Brien, Tesla and a top college running back
In today’s newsletter, I discuss Conan O’Brien’s move to a video streaming platform, Tesla’s addition to the S&P 500 and an emerging college running back.
MEDIA: Conan and Streaming
Here’s the latest sign of just how influential and important video streaming platforms have become.
Late night talk show host Conan O’Brien will end his 28-year run as host of a late night talk show on traditional linear television.
O’Brien will take his talents to video streaming platform HBO Max, where he will do a weekly program instead.
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While O’Brien’s current talk show on TBS hasn’t generated big ratings lately, he has had success in podcasting while that show has been on the air.
So, a star who rose prominently via traditional media now is embracing newer media platforms like video streaming and podcasting.
That’s a trend I expect to continue, and I suspect that we’ll see more and more stars who grew to fame on traditional media move to these newer platforms.
MONEY: Tesla and the S&P 500
S&P Global, the company behind the widely followed S&P 500 Index of stocks, announced after the close of trading Monday that it will add Tesla to the S&P 500 on December 21.
Tesla, a very popular stock among the daytrading set, had been rumored to become part of the S&P 500 for the past few months.
Tesla stock, not surprisingly, jumped after that announcement of its inclusion to the S&P 500.
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Here’s a breakdown of the likely reason why Tesla stock — or any other stock for that matter — that’s added to an index like the S&P often reacts by trading higher.
When a company’s stock is added to a widely followed index like the S&P, it usually creates new demand for those shares due to the soaring popularity among investors of index funds that track benchmarks like the S&P 500.
In other words, index funds rebalance their portfolios by buying the newly added stock and selling the stock of the company that it replaced.
At any rate, it’s not like there needed to be any more demand creation for a very popular stock like Tesla, but that’s probably what happened this week.
SPORTS: Top Running Back
For a number of years now in college football, the Mid-American Conference has played some of its games on Tuesday nights during the season. Last night was no exception as Buffalo beat Bowling Green in a blowout, 42-17.
For those who didn’t watch the game — I suspect that includes every subscriber to this newsletter — you missed an outstanding performance by Buffalo running back Jaret Patterson, who rushed for 301 yards.
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Patterson, a junior, burst on to the scene as a freshman, rushing for 1013 yards, then followed that up with 1,799 yards as a sophomore.
I expect Patterson to continue his exceptional performance at Buffalo the rest of this season — he’s run for 511 yards and eight touchdowns in three games so far this year.
Additionally, I expect him to become one of the top sleeper picks in the NFL Draft next year, and I anticipate that there will be a lot more talk about his pro prospects in major sports media the coming months.
Jeremy Pink currently serves as an advisor to companies in media and financial tech. He is 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. Jeremy 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)