What we’re reading (2/3)
“Value Investing Is Back. But for How Long?” (Wall Street Journal). “Value investing—buying stocks that are cheap on measures such as earnings or book value—is having a renaissance. Up to last Thursday, large value stocks beat more expensive “growth” stocks by the most of any 50-day period since the technology bubble burst in 2000-01, with the exception of the post-vaccine rebound early last year. The big question for investors: Does this mark the rebirth of what was a dying strategy? Or was this just another spasm, already fading as technology stocks rebound?”
“Investors Are Turning To Active Managers — Even If ‘They Can’t Predict The Future’” (Institutional Investor). “Amid inflation worries and market volatility, a growing number of institutional investors are beginning to hand over the portfolio reins to active managers…Daniel Celeghin, managing director of the asset management consulting firm Indefi North America, said that while the diversification of uncorrelated assets is an evergreen task, the inclination to work with more skilled active managers is a reaction to market instability.”
“Meta’s Perfect Storm: Fleeing Users And Apple Privacy Changes Hit Ads Business” (Financial Times). “As more than $200bn was wiped off the value of Meta, chief executive Mark Zuckerberg focused blame for falling profits and users at Facebook’s parent company on a rival: TikTok, the viral short-form video app…[t]hat dramatic fall reflected how investors foresee an even grimmer future beyond just new competition from TikTok. Other Meta executives, such as chief financial officer Dave Wehner, admitted it faced a perfect storm of ‘headwinds’.”
“Cable News Networks Have A Serious Ratings Problem In The Age Of News Burnout” (Fast Company). “While most people would say 2020 was one of the worst years on record, the same might not be said by cable news executives. All the pandemic turmoil and election strife of 2020 saw audiences glued to cable news channels, leading to a surge in viewership. But 2021 saw a major reversal in the viewership fortunes of the major cable news networks...Fox Business: -47.5%…CNN: -40.5%…Fox News: -34.6%…MSNBC: -29.7%…CNBC: -19.0%.”
“The Real Cost Of 15 Minute Grocery Delivery” (The Journal). “A battle among fast grocery delivery companies is raging in New York and other U.S. cities. With millions of dollars of venture capital funding, startups are flocking to get products out to customers in under 20 minutes, but at what cost?”
