Welcome to another edition of TSOH Weekly Roundup.
Each update features a Chart of the Week, along with a brief discussion on three news items relevant to companies in the TSOH investable universe.
Chart Of The Week (from “Microsoft: The $250 Billion Club”)
Three Notable Items
“How Beer Companies Stole Happy Hour From Liquor Brands”
Amidst sustained volume pressures in the U.S. alcohol business, one bright spot has been ready-to-drink cocktails (RTDs). While my investment activity in this industry has been relatively limited thus far – a stake in Fever-Tree – I see a handful of additional companies I’d be interested in at the right price.
“Sales by value for RTD cocktails rose 28% over the past 52 weeks… It has grown from 4% of the total U.S. alcohol market volumes in 2019 to 10% today… The RTD category isn’t a natural fit for distillers. The drinks are packaged, distributed and consumed more like beer. Making them requires canning facilities, but distillers are more likely to own bottling lines.”
“Personal AI assistants could soon reshape the digital economy”
An Economist article discussing the emergence of AI agents and assistants. As mentioned in last week’s Meta update, this has aligned with my own experience: Muse has quickly become an integral part of how I manage my business, and it has significantly impacted how I interact with the internet broadly - for example, far less use of search engines and other chatbots.
“More than 10 million people have downloaded the Muse app since its debut... ChatGPT, the hit chatbot from OpenAI that precipitated the AI boom, had only 3.7 million downloads of its mobile app in the same timeframe after its release, around six months after the web version was first unveiled.”
“The Making of Grand Theft Auto VI”
A Bloomberg article on the eight-year process to create the latest installment of GTA. Given the significance of this launch, I’ll be interested to see how it impacts engagement for a platform like Roblox, if at all, in the months ahead.
“GTA VI, due out November 19, is expected to be one of the biggest entertainment releases in history. Its immediate predecessor has sold 230 million copies, making it the bestselling nonmobile game of all time. The first trailer for GTA VI racked up almost 300 million views on YouTube, shattering records, while a recent gameplay premiere on Netflix was the platform’s most viewed content the week it came out… Some analysts expect the next GTA to sell 40 million copies on PlayStation and Xbox, and to generate more than $3 billion in revenue in its first four months.”
TSOH Updates
Here’s the updated TSOH research list for the past six months:
Monday’s research report will be an update on Roblox (RBLX).
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.