TSOH Weekly Roundup (05/01/26)
Welcome to the fifth edition of the TSOH Weekly Roundup, which will be in your email inbox each Friday at 11am ET. Each update features a Chart of the Week and a brief discussion on three news items relevant to the TSOH investable universe. If you have feedback on this format, please let me know.
Chart Of The Week
One revealing chart following a big week for mega cap tech earnings.
Three Notable Items
“QVC Lost the Home Shoppers to Social Media Influencers”
I haven’t talked about Qurate in nearly five years, but here’s what I wrote when I liquidated the position in May 2021: “I no longer feel comfortable with the bet that I’m being asked to make. When I first invested in QRTEA in September 2020, at an average cost of ~$7 per share, I felt that I had a straightforward understanding of what needed to happen for the investment to be a success. Today, at ~$13 per share, I feel a bit behind the eight ball - and when financial leverage is involved, that’s not the place to be.” Qurate was different from the typical TSOH investment, one where the position was held on a tight leash; what happened subsequently to QRTEA shows why.
“The stuck-at-home population has long been QVC’s most reliable source of sales; its best year ever came in 2020, when it pulled in more than $14 billion in revenue. In the years since, that figure has dropped more than a third.”
“Roblox’s David Baszucki Built the Biggest Playground on Earth”
Roblox doesn’t fit the mold of a traditional gaming company, with recent engagement and DAU trends that have left industry peers in the dust. In this interview with David Senra, co-founder and CEO Dave Baszucki discusses his path to Roblox, along with his long-term vision for the platform. (Note that the stock price is down about 15% this morning following Q1 FY26 results.)
“Roblox and YouTube are both content platforms, but the content in a video platform is typically solo engagement. The content in Roblox is a scaffold for communication and being together… In Roblox, the viral loops are the quality of the content and the users being together / social connection.”
“Spotify Premium Now Includes Peloton Classes, Marking Push Into Fitness Content”
I have long viewed Peloton’s standalone digital efforts with skepticism, a conclusion subsequently supported by lackluster digital app paid subscriber trends. I’ll have more to say on this topic following Peloton’s Q3 FY26 results, but I view this global partnership as an intelligent attempt to find an answer to that question, which may also support improved CF Subscriber trends. In my view, it speaks to the unique and valuable position Peloton holds in fitness.
“Spotify is offering workout classes from Peloton to premium subscribers, marking the music streaming pioneer’s first major foray into fitness content [Spotify has ~293 million global premium subs]. The partnership will bring curated playlists and access to a catalog of more than 1,400 ad-free, on-demand content from some of Peloton’s most popular wellness instructors.”
TSOH Updates
Here’s the updated TSOH research list for the past six months:
Have a great weekend!
NOTE - This is not investment advice. Do your own due diligence.
I make no representation, warranty, or undertaking, express or implied, as to the accuracy, reliability, completeness, or reasonableness of the information presented in this report. Assumptions, opinions, and estimates expressed in this report constitute my judgment as of the date thereof and are subject to change without notice. Projections are based on a number of assumptions, and there is no guarantee that they will be achieved. TSOH Investment Research is not acting as your advisor or in any fiduciary capacity.