Big flip

This is highly encouraging if generally true. Via Ankler, Wall Street is siding with the strikers in the Hollywood conflict!

= = = = = START QUOTE:

Michael Pachter, research analyst at Wedbush Securities, is more pointed: “The market thinks all of the corporate bosses are idiots, and generally sides with the unions.” He adds: “Higher pay might be difficult to endorse, but protections for residual uses of content and against AI make perfect sense to most people, and the media companies are intransigent and unapologetic.”

Indeed, it’s hard to find anyone on the analyst side feeling warm and fuzzy toward Hollywood right now.

“Investors were down on the media sector before the strikes and this hasn’t helped,” says James Dix, a former Wedbush analyst now covering the TMT sector with CryptoOracle, a New York-based investment advisory.

To make matters worse, as we now know, Wall Street rewarded media companies that could scale fast until that narrative hit the buffers in April 2022, when Netflix lost 200,000 subscribers, reported a bad quarter and saw its stock price plunge.

After that, Wall Street decided to replace subscriber growth-at-all-costs with profits,

= = = = = END QUOTE.

This is a historic first for goddamn sure. Wall Street has NEVER taken the union side before. [Starting in the ’70s most unions took the same side as Wall Street, ruining their own purpose, but that’s a different story.]

Most of the big media companies are either pure Tech Tyrants (Amazon, Apple) or owned by Tech Tyrants. They’ve been operating on pure QE crack since 2008, and still haven’t adapted to the loss of free counterfeit. Note the switch of Wall Street goals from growth to profit in April 2022. That’s when Powell made permanent QT definite and clear.

If Wall Street is now looking for profits instead of exponential growth, we are finally back in REAL ECONOMICS. The insane era of Share Value, which began in 1980 and turned total in 2008, is over.

Corporations have been destroying products and workers and customers for 40 years in order to please the demanding wife called Wall Street. Now they’re still doing the same thing after Wall Street snuck out of the bedroom. Like Wile E Coyote the corporations are jacking off in midair, pleasing their own CEOs and nobody else.