NY Times Buying The Athletic, Big Beverage Partnership, and Potential IPOs

Podcast Summary

• Learning effective communication skills from experts on the Think Fast, Talk Smart podcast: Improve communication skills with insights from experts on managing anxiety, taking risks, and harnessing nervous energy in the Think Fast, Talk Smart podcast. The New York Times' acquisition of The Athletic for $550 million highlights the importance of strong communication and user experience in business.

  Effective communication skills are essential in business and life, and the Think Fast, Talk Smart podcast can help you hone these skills. With nearly 43 million downloads and the number one career podcast in over 95 countries, this Webby award-winning podcast offers valuable insights from experts on various communication topics. Whether it's managing speaking anxiety, taking risks in communication, or harnessing nervous energy for powerful presentations, the podcast covers it all. Meanwhile, in the business world, the New York Times is making headlines with its agreement to buy The Athletic, a subscription-based sports site, for $550 million. While some may question the price tag, others see the potential for the Times to strengthen its digital presence, particularly in sports coverage. The Times has shown impressive growth in its digital subscription business over the past few years, making it a market-beating stock. However, the success of the acquisition will depend on how well the Times manages The Athletic's user experience.

• The New York Times adapts to the digital age but faces risks with acquisitions: The New York Times thrives online but loses certain segments to niche sites, making an acquisition of The Athletic a smart move despite risks. Meanwhile, Rivian Automotive's shares drop due to Amazon's partnership with Stellantis, highlighting the importance of adaptation in competitive industries.

  The New York Times, despite facing existential challenges in the digital age, has managed to adapt and become an online first media company, but this success has come at the cost of stripping certain segments of their business, such as sports coverage, which has made niche sports sites like The Athletic successful. The New York Times' recent acquisition of The Athletic for $550 million is a smart business move, but it comes with risks, as not all acquisitions work out. Meanwhile, Rivian Automotive's shares have been hit hard in the past few days due to competition from Amazon's partnership with Stellantis, a reminder that Amazon's financial stake in a company does not guarantee exclusive partnerships. The media and automotive industries continue to evolve, and companies must adapt to stay competitive.

• Competition from tech giants in the EV industry: Smaller EV companies must recognize the competitive landscape and adapt to stay relevant as tech giants like Amazon enter the industry.

  For smaller companies like Rivian in the electric vehicle industry, they face competition not just from other players, but also from larger companies like Amazon and Stellantis. These larger companies view smaller companies as potential options and may pursue other deals that better serve their interests. Amazon, with its vast resources and aspirations, could potentially enter the automaking business itself. The EV industry is attracting many players, and it's essential for smaller companies to recognize the competitive landscape and adapt accordingly. Amazon, with its history of entering markets late but disruptively, is a company to watch in the EV industry. The industry's rapid growth and the involvement of tech giants make it an exciting space to monitor in 2023.

• Automotive and Beverage Giants Shift Focus: Volkswagen, Toyota invest $170B in EVs, challenging Tesla. Constellation Brands partners with Coca-Cola to launch Fresca cocktails, expanding beyond beer.

  Traditional automotive giants Volkswagen and Toyota are making significant investments in the electric vehicle (EV) industry, totaling $170 billion, and are poised to challenge Tesla with their manufacturing expertise and established supply chains. In the beverage sector, Constellation Brands is partnering with Coca-Cola to launch Fresca-branded cocktails, expanding their portfolio beyond beer and potentially threatening the market share of brewing companies. The pandemic has accelerated this trend as consumers increasingly opt for prepackaged liquor and spirit drinks. The success of Hard Seltzer in recent years has shown that beverage giants like Coca-Cola see potential in this market. For investors, the stock prices of these companies, including Constellation Brands, have seen significant growth, despite challenges faced by their CEOs in the past few years. Overall, these developments highlight the shifting landscape in both the automotive and beverage industries.

• Companies Adapting to Changing Consumer Habits and Market Conditions: Constellation Brands is launching new products, Instacart focuses on membership model for ongoing relationships, and both companies adapt to consumer convenience and pandemic impact

  Grapefruit is an underrated mixer in the alcohol space and Constellation Brands, which has streamlined its business in the last few years, is expected to launch new products in 2022, including a potential Instacart IPO. Instacart, a grocery delivery and pickup service, saw significant growth during the pandemic and is now focusing on establishing ongoing relationships with customers through a membership model. The company, which offers delivery fees as low as $4 for same-day orders over $35, aims to provide convenience and ease for consumers. Meanwhile, Constellation Brands, which has a history of being mismanaged but is now making strategic moves, is expected to launch new products later this year. Overall, these companies are adapting to changing consumer habits and market conditions, highlighting the importance of innovation and flexibility in business.

• Instacart's new CEO and IPO plans: Instacart, a grocery delivery service, saw growth during the pandemic but faces uncertainty regarding long-term growth and valuation. New CEO Fiji Simo, with expertise in monetization from Facebook, may bring new strategies to Instacart's grocery and ad businesses. IPO plans were delayed.

  Instacart and Reddit, two notable companies in the tech industry, experienced significant growth and changes in 2021. Instacart, a grocery delivery service, saw rapid growth during the pandemic but faces uncertainty regarding long-term growth and valuation. The company transitioned from founder Apurva Mehta to Fiji Simo as CEO and delayed their IPO. Simo, with a background at Facebook, may bring monetization expertise to Instacart's grocery and ad businesses. Reddit, a social media, news, and content aggregator platform, gained widespread attention due to the Wall Street Bets subreddit and the GameStop and AMC situation. With a large user base and reach in the top ten most visited websites in the US, Reddit's future success lies in capitalizing on its unique position as a hybrid platform and maintaining user engagement. Both companies present intriguing opportunities for growth and innovation in their respective markets.

• Reddit's monetization challenges and Stripe's role in Fintech: Reddit faces scrutiny over monetization and user base, while Stripe, a Fintech company, enables businesses to accept payments in over 135 currencies and offers advanced security.

  Reddit, with its impressive 52 million daily active users, is still working on optimizing its monetization strategy. While they have made around $400 million annually from advertising and membership models, this is below the rates of many peers. The company faces scrutiny regarding the size and effectiveness of its user base, monetization efforts, and content moderation. Additionally, the tech-savvy user base may use ad blockers, posing a long-term challenge for revenue growth. However, the strong retail following, driven by the Wall Street Bets community, could significantly impact the stock price once Reddit goes public. Moving on to Stripe, it's a lesser-known Fintech company that plays a crucial role in facilitating payments between businesses and their customers in over 135 currencies. Their software-as-a-service model offers various tools for accepting payments, both online and in-person, and rolling out buy now, pay later features. Stripe's platform also ensures advanced security. Despite being a private company, Stripe's significant impact on businesses and consumers makes it a noteworthy player in the financial technology sector.

• Stripe: A Comprehensive Payments Solution Provider: Stripe, with its comprehensive payments solutions, high-profile investors, and significant valuation, is well-positioned to capitalize on ecommerce growth and high switching costs, but its growth into this valuation presents a challenge due to limited information as a private company.

  Stripe is a comprehensive payments solution provider, offering tools for invoicing, virtual and physical cards, and financing through Stripe Capital. With a successful business model similar to Square, Stripe's impressive roster of high-profile investors, including Peter Thiel and Elon Musk, and its significant valuation, it's poised to capitalize on the tailwinds of ecommerce growth and high switching costs. However, as a private company, information is limited, and its growth into this valuation will be a major challenge. Despite this, the bull case for Stripe is strong, and as more information becomes available, we may see even more upside.