It’s crunch time for Yahoo’s Marissa Mayer

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Until now, Yahoo’s stake in Chinese Ebay-like giant Alibaba has bolstered Yahoo’s stock price. But now Alibaba has gone public (Yahoo retains a $34billion stake), Marissa Mayer needs to sell stockholders her ideas to keep Yahoo afloat. Luckily, she revealed yesterday that Tumblr, her biggest acquisition yet, is expected to generate $100 million in revenue, and positive operating earnings, in 2015.

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Chipotle booms while MacDonald’s tanks

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A record quarter for profit growth at Chipotle coincides with severe shrinking at McDonald’s, where net income is down 30%. Americans prefer to eat elsewhere and while in China a meat scare has hot profits. Macdonald’s are fighting back, simplifying menus and rearranging outlets. It isn’t working.

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Youtube is a vast untapped resource

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YouTube is responsible for about 40% of online video consumption, which is surging. And yet, relative to other forms of advertising (online and traditional) online video has a long way to run.  Youtube’s informal streaming music service, is now the largest in the world, both in terms of streams per month and monthly users. It’s doubling down on that with a subscription-based audio product expected in the coming months. All this makes the $1.65 billion Google paid to buy YouTube in 2006 seem like a killer bargain.

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The music industry will hit a bottom next year, and then resume growth, says Credit Suisse

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In fresh research this week Credit Suisse argues that global recorded music industry could soon return to expansion, driven largely by rising adoption of subscription-based streaming services. If subscription based streaming music goes mainstream—it is likely to get a big lift if and when Apple starts promoting/integrating Beats Music, which it bought earlier this year—plenty of people will be spending more on music than they ever have before, for access to more music than they’ve ever had before. And suddenly, the music business will have a new growth engine. But how will the money be carved up?

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Quantitative easing does not lead to inflation

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Does quantitative easing cause inflation? In a word, no. In a sentence, not in a liquidity trap, when interest rates are as close to zero as makes no odds.

Here is the proof, from Paul Krugman. The red line is  inflation, the blue line QE in the US. The arrow marks notorious  letter sent by certain economists to FED chairman Ben Bernanke telling him that his policy of QE was certain – certain – to lead to inflation.

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