Category Archives: Yahoo

In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But even the best stock picker will only win with some selections. At this point some shareholders may be questioning their investment in The Kraft Heinz Company (NASDAQ:KHC), since the last five years saw the share price fall 57%. Furthermore, it's down 14% in about a quarter. That's not much fun for holders. But this could be related to the weak market, which is down 6.1% in the same period.

Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns.

View our latest analysis for Kraft Heinz

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During five years of share price growth, Kraft Heinz moved from a loss to profitability. Most would consider that to be a good thing, so it's counter-intuitive to see the share price declining. Other metrics might give us a better handle on how its value is changing over time.

We note that the dividend has fallen in the last five years, so that may have contributed to the share price decline. The revenue decline of 0.1% per year wouldn't have helped. So the the weak dividend and revenue data could well help explain the soft share price.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

earnings-and-revenue-growth

Kraft Heinz is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling Kraft Heinz stock, you should check out this free report showing analyst consensus estimates for future profits.

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As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Kraft Heinz, it has a TSR of -46% for the last 5 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!

While it's certainly disappointing to see that Kraft Heinz shares lost 5.2% throughout the year, that wasn't as bad as the market loss of 22%. Of far more concern is the 8% p.a. loss served to shareholders over the last five years. This sort of share price action isn't particularly encouraging, but at least the losses are slowing. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 4 warning signs for Kraft Heinz (1 is potentially serious!) that you should be aware of before investing here.

But note: Kraft Heinz may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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Shareholders in Kraft Heinz (NASDAQ:KHC) are in the red if they invested five years ago - Yahoo Finance

Bill Gates called for realism in the climate change debate.Getty Images

Bill Gates said only innovation can help solve the climate crisis.

He told Bloomberg Zero it's "unrealistic" to expect people to radically change how they live.

Gates says he played a key role in the Inflation Reduction Act, which will help cut carbon emissions.

Bill Gates said the climate crisis will not be solved by expecting people to radically change their lifestyle over concerns about the environment.

"Anyone who says telling people to stop eating meat or wanting to have a nice house will basically change human desires, I think, that is too difficult," he told Bloomberg's Zero podcast. "You can make a case for it, but I don't think it's realistic for that to play a central role."

The billionaire philanthropist discussed the US climate bill in the podcast and said that climate change could not be solved without innovation.

"We're not even trying to make breakthroughs, such as inventing an economic way of making aviation fuel, cement or steel," he said. "The existing tools only apply to areas like electricity generation and don't apply to most of the emissions."

Gates has long been a supporter of climate change innovation. In 2015 he founded TerraPower, which designs nuclear reactors, and launched Breakthrough Energy, an investment vehicle that has invested in almost 100 clean-energy companies.

He has also funded a number of start-ups including Turntide, which creates energy-efficient electric motors, and lithium start-up Mangrove Lithium. Last year he published a book titled "How To Avoid A Climate Disaster" that calls for climate innovation.

The world's fifth-richest person also said in the interview that he played a key role in the Inflation Reduction Act, which has allocated almost $370 billion to help cut US carbon emissions by 40% over the next eight years.

"I am getting governments involved and this latest bill I was personally involved in a lot of what got written into it and working with the key senators in the last month to get it passed," he said.

Read the original article on Business Insider

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Bill Gates says telling people they can't eat meat or have a 'nice house' won't solve the climate crisis - Yahoo Finance

If you want to know who really controls AbbVie Inc. (NYSE:ABBV), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 70% to be precise, is institutions. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

No shareholder likes losing money on their investments, especially institutional investors who saw their holdings drop 6.2% in value last week. However, the 28% one-year return to shareholders may have helped lessen their pain. They should, however, be mindful of further losses in the future.

Let's take a closer look to see what the different types of shareholders can tell us about AbbVie.

Check out our latest analysis for AbbVie

ownership-breakdown

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in AbbVie. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at AbbVie's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. We note that hedge funds don't have a meaningful investment in AbbVie. Our data shows that The Vanguard Group, Inc. is the largest shareholder with 8.7% of shares outstanding. With 7.6% and 4.4% of the shares outstanding respectively, BlackRock, Inc. and State Street Global Advisors, Inc. are the second and third largest shareholders.

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A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own less than 1% of AbbVie Inc.. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own US$163m worth of shares. Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

With a 30% ownership, the general public, mostly comprising of individual investors, have some degree of sway over AbbVie. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

It's always worth thinking about the different groups who own shares in a company. But to understand AbbVie better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for AbbVie you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Join A Paid User Research SessionYoull receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

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AbbVie Inc.'s (NYSE:ABBV) institutional investors lost 6.2% last week but have benefitted from longer-term gains - Yahoo Finance

Theres not much working well for the New Orleans Saints. Theyre 1-3 after losing to the Minnesota Vikings, and they rank among league leaders in penalties. Their offense and special teams units are two of the least effective squads around the league. The defense cant do everything on its own. Its a really frustrating spot to be in after just four weeks, but its the hole theyve dug for themselves. Lets ask and answer three key questions: what went right, what went wrong, and whats the bottom line?

What went right?

Good things continued to happen almost every time Chris Olave was targeted. The rookie wide receiver caught 4 passes for 67 yards, converting a first down or scoring a touchdown each time. He rose to the occasion in a couple of high-stakes situations and looks like someone who will soon enter the conversation surrounding the leagues best receivers. Hopefully his late-game leg injury isnt serious; he returned to play through it.

And the defense had some really bright moments. Their third down package was on point, yielding just 5 conversions on 14 tries a success rate of only 35.7% The pass rush was active throughout the afternoon, sacking Cousins 3 times and totaling 8 hits, with nearly as many knockdowns. Cameron Jordan and Marcus Davenport were ridiculous mismatches for the Vikings bookend tackles and controlled the line of scrimmage. Theyre heating up at the right time.

It wasnt flashy, and at times he made some serious mistakes in two-minute situations (like clutching up just before halftime and fumbling inside New Orleans territory, and later losing 12 seconds on the final drive by being slow to line up the offense pre-snap) but Dalton turned in an efficient 20-of-28 passing line for 236 yards. Maybe he uncorks more big plays with Michael Thomas, Alvin Kamara, and Calvin Throckmorton in the lineup. We still didnt see enough to suggest he should start over Jameis Winston in the long term.

What went wrong?

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Lets start with the penalties. There were a ton of questionable fouls on the secondary late in regulation, giving Minnesota 50 yards and two first downs on a critical drive to retake the lead. A flag on Tyrann Mathieus supposed illegal use of hands didnt hold up under replay, and Adam Thielen successfully lobbied to have a pass interference foul called against Marshon Lattimore later on the same possession.

But there are dubious penalties against the Saints in every game. You cant control that. What you can control is a young, handsy defensive back like Paulson Adebo being fouled twice for holding (a problem he also had last year). You can coach a jumpy backup guard like Calvin Throckmorton out of drawing multiple false starts (which was an issue for him last season, too). You can drill reliable tackling technique and iron out procedural issues. This Saints team is sloppy and prone to mistakes and mental errors, and a week in London didnt change that. Dennis Allen and his coaching staff are failing their players and costing them games.

We saw another instance of Allens issues with Marshon Lattimore lined up against Justin Jefferson without any help; Jefferson ended the day by catching 10 passes for 147 yards and a score, dropping another would-be touchdown. Jefferson won that matchup and the Saints failed to adjust to it. I get it Allen wants to trust Lattimore to hold down his side of the field so help can be sent elsewhere. But when the chips were down in the games last minutes, he left Lattimore stranded on an island and allowed Jefferson to set up a game-winning field goal try.

Back to the offense. They experienced the same slow, sloppy start as weve seen with Winston under center and only managed 7 points in the first half. Dalton threw several risky passes that should have been intercepted by the Vikings defense. Again, maybe things run more smoothly with more hands on deck, but this was proof of what weve been saying about the Saints having two mediocre quarterbacks rather than any upgrades behind a struggling starter.

And what's the bottom line?

The Saints are a seriously flawed football team. Their coaching staff lacks an eye for detail and its led to too many penalties in too many critical situations. Theyre asking too many guys on the wrong side of 30 to do too much and make up for a poor draft strategy over the last few years. And there isnt a light at the end of the tunnel: their 2023 first round pick is going to the Philadelphia Eagles after an aggressive trade earlier this year. They went all in on 2022 and are getting burned for it.

Thats not to say things cant turn around. The NFC South is still a competitive division, and its a long season. They sat Kamara and Thomas and Winston this week to protect their health and rest them up for the long haul. Weve seen New Orleans hit its stride and win six, seven, eight games in a row before. Its not impossible.

But that happened with Sean Payton on top of the organization. We can say pretty definitively by now that Allen isnt Payton. And he doesnt have to be he can absolutely lead this team to success in his own way. But too often this year weve heard that drumbeat that the Saints want to maintain continuity and do things Paytons way. If things dont change soon, were closer to deciding Allen was the wrong guy for the job rather than someone who might be able to turn it all around.

Story originally appeared on Saints Wire

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Instant analysis from the Saints 28-25 loss to the Vikings - Yahoo Sports

The Cleveland Browns officially ruled out defensive end Myles Garrett for Week 4 against the Atlanta Falcons, the team announced Saturday morning. He was originally listed as questionable four days after he was involved in a one-car accident on Monday afternoon. Garrett suffered a shoulder sprain, biceps strains as well as minor lacerations, bumps and bruises from the crash.

Garrett spoke for the first time since the accident on Friday, where he described the incident as "a hell of an event" and that he was "grateful to be here."

Police issued Garrett a citation for speeding and failing to control his vehicle after reports say Garrett drove his Porsche off the west side of an Ohio roadway Monday afternoon, hit a ditch and a fire hydrant and flipped the car before coming to a stop.

He was reportedly driving 65 miles-per-hour in a 45-mph zone. Garrett said he swerved to avoid an animal and then "overcorrected" on a wet road that caused the car to flip. He and a female passenger who reportedly sustained non-life-threatening injuries were taken to a local hospital before they were both released Monday night.

The Browns confirmed most of this news on Tuesday.

This was not the first time Garrett was cited for speeding. Garrett has been issued five speeding tickets over the past four years, according to cleveland.com, and eight since 2017. This includes a citation for driving 120 mph in a 70-mph zone and 99 mph in a 70-mph zone over a two-day period in 2021.

Garrett did say Friday that he should slow down more when driving.

"I gotta be smart overall with driving," Garrett added. "Don't take it for granted. Be grateful that I'm able to still be here."

Garrett has tallied three sacks, four tackles for a loss, five quarterback hits and a forced fumble in three games this season for the Browns. He was drafted No. 1 overall by Cleveland in 2017 out of Texas A&M.

Myles Garrett might play just four days after crashing his car. (Photo by Nick Cammett/Getty Images)

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Myles Garrett ruled out for Week 4 after scary car crash, says he's 'grateful' to be alive - Yahoo Sports

Washington and UCLA headline a hefty Friday slate to start Week 5 of the 2022 college football season.

The No. 15 Huskies visit the Bruins as 3-point favorites. While Washington is the only team ranked, both are undefeated ahead of what could be a pivotal Pac-12 matchup (10:30 p.m. ET, ESPN).

Washington already has as many wins in 2022 as it did a season ago. The 2021 season was a mess for the Huskies and new coach Kalen DeBoer brought in former Indiana QB Michael Penix to run the offense. Penix has been one of the best quarterbacks in college football so far this season as Washington has scored at least 39 points in all of its games.

Penix has thrown for 1,388 yards and is completing 64% of his passes while tossing 12 TDs to just one interception so far this season. RB Wayne Taulapapa is averaging over six yards a carry and Washingtons top three receivers are all averaging over 16 yards a catch. This is a far cry from the Washington offense we saw plod around the field last season.

Washington quarterback Michael Penix Jr. is pictured during an NCAA football game against Kent State on Saturday, Sept. 3, 2022, in Seattle. Washington won 45-20. (AP Photo/Stephen Brashear)

UCLA, meanwhile, is also putting up points. The Bruins have rushed for 882 yards over the first four games of the season and are averaging nearly six yards a carry as a team. QB Dorian Thompson-Robinson has thrown for nearly 500 fewer yards than Penix but is completing 75% of his passes and has thrown eight touchdowns.

The offensive success of each team so far is why the over/under is currently 64.5. Short road favorites are a dangerous play; UCLA had a scare against South Alabama in Week 3 but appears to be a solid team. Washington, meanwhile, could be one of the best teams in the Pac-12. Wed lean to betting the under in this game and dont have a real read on the spread. It should be a phenomenal matchup if you can stay up for it.

Tulane and Houston get the festivities started Friday night (7 p.m. ET, ESPN) and the Cougars are 2.5-point favorites. Houston is 3-1 after escaping with a win over Rice in Week 4 while Tulane followed its big win over Kansas State in Week 3 with a loss to Southern Miss in Week 4. Over 55 feels like the right play here. While Houstons pass rush has its moments, the defense overall isnt very good.

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UTSA is a 4.5-point favorite at Middle Tennessee State (7:30 p.m. ET, CBSSN). UTSA is 2-2 with losses to Texas and Houston while MTSU is coming off a 14-point win at Miami. Both teams are averaging and giving up over 30 points per game, though UTSA has played a slightly tougher schedule. Well take UTSA to cover in this one.

Boise State is a 6.5-point favorite at home against San Diego State (8 p.m. ET, FS1) as Taylen Green is set to make the start at QB. Starting QB Hank Bachmeier is transferring away from the Broncos after getting benched and the team made a change at offensive coordinator after a 17-point loss to UTEP in Week 4.

Boise States offense has been awful so far this season. Bachmeier and Green have combined to throw for just 652 yards on 122 pass attempts and the team has rushed for fewer than 500 yards at just over 3.5 yards a carry. It says a lot about San Diego State that the Aztecs are TD underdogs to the Broncos and its pretty clear why the over/under for this game is just 39. We re leaning toward the over, however. Boise State has to get it figured out at some point on offense and a coordinator change may be the spark it needs.

The nightcap features New Mexico and a revitalized UNLV (11 p.m. ET, CBSSN). The Rebels are 3-1 and beat Utah State by 10 points and North Texas by 31. UNLV is a 14-point favorite over New Mexico after the Lobos lost 38-0 to LSU in Week 4 and also have lost by 17 to Boise State. Watch for UNLV QB Doug Brumfield in this one. Hes completing 70% of his passes and has 12 total touchdowns through the first four games of the season.

The American League playoff field can officially be set on Friday night with wins by the Rays and Mariners. The Mariners are 5.5 games up on the Orioles with seven games to play and the Rays are five games up with six to play. If the Orioles lose to the Yankees on Friday night and the Mariners and Rays win, the latter two teams will secure the final two Wild Cards spots.

The Orioles are +155 to win at the Yankees while New York is -190.

The National League has a serious fight for the final Wild Card spot. The Phillies are now just a half game ahead of the Brewers with seven games to play while Milwaukee has six games left. Philadelphia starts a series against the last-place Washington Nationals on Friday and is -175 to beat the Nationals. The Brewers, meanwhile, are playing the Miami Marlins and are -175 to win.

After watching Tua Tagovailoa get stretchered off the field in the second half it feels callous to congratulate those who won money on the Bengals victory over the Dolphins. Cincinnati won 27-15. The total was 49 and Cincinnati was a 4-point favorite.

Excerpt from:

The Daily Sweat: Washington and UCLA headline a Friday feast of football - Yahoo Sports

Florida Gov. Ron DeSantis broadcast his national ambitions this week by taking credit for a flight that sent undocumented immigrants from Texas to Marthas Vineyard, making him the latest conservative lawmaker to protest the rise in illegal immigration by shipping border crossers to a liberal state.

The governor's stunt may have broken the law, and spurred locals to assist the migrants. Its nonetheless likely to strengthen his position as former president Donald Trumps most formidable rival in 2024 among Republican primary voters. DeSantis has attracted national attention for championing his state's so-called don't say gay law and for downplaying the risks of COVID-19.

But it's his fundraising prowess that perhaps cements his standing as the primary Trump alternative. After years of diligently gathering checks, the Florida governor is now on the cusp of a major milestone. He is set to soon take the mantle of having raised the most money of any candidate for governor ever.

Thats according to data from OpenSecrets.org that goes back decades.

Florida Governor Ron DeSantis speaks after the primary election for the midterms during a rally in Tampa in August. (REUTERS/Octavio Jones)

The DeSantis story is more about a politician who's using his state campaign to be a test site for a potential presidential run," Sarah Bryner, the director of research and strategy at OpenSecrets, told Yahoo Finance on Friday.

DeSantis has structured his fundraising in a new way, directing donors both to his campaign committee and his political action committee. The PAC has been successful, Bryner notes, because it has no contribution limits.

Plenty of wealthy donors have taken full advantage of that quirk in campaign finance laws.

A key donor is Citadel CEO Ken Griffin. The hedge funder has backed DeSantis for years, giving $5 million for his current campaign on top of contributing $5.75 million in 2018.

Griffin declined to list DeSantis as his favorite candidate during a May appearance at the Milken Institute Global Conference. However, he conceded that DeSantis has done a lot of things right when it comes to preparing for 2024.

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Griffin also said at that appearance that he didnt appreciate the governor's recent campaign against the The Walt Disney Company (DIS) over his opposition to the state's anti-gay law. It can be portrayed or feel or look like retaliation, Griffin said.

Citadel CEO Ken Griffin speaks at the 2022 Milken Institute Global Conference in Beverly Hills, California in May. (REUTERS/Mike Blake)

According to the latest data, DeSantis has raised over $174 million since he took office. That's much more than he is likely to need to hold his seat, where he enjoys a polling edge against Democratic rival, Charlie Crist. While this money is ostensibly being raised for the upcoming governor's race, it's clearly aimed at 2024 and whatever DeSantis doesn't spend can be saved for the future.

The biggest contributor on record is Robert Bigelow. The owner of the Budget Suites hotel chain has written exactly one check so far this election cycle: $10 million to the DeSantis PAC. Bigelow has bestowed his fortune on a range of unlikely causes, from UFO-hunting to "consciousness studies" to inflatable space habitats, according to Forbes.

Another mega-donor is Richard Uihlein and his wife, who have chipped in $1.2 million. Uihlein, worth an estimated $3.9 billion, gave Trump money during the 2020 contest, according to Federal Election Commission data, but hasn't given to the former president since then. Still, he's backed an array of Trump-aligned candidates such as Herschel Walker in Georgia and Blake Masters in Arizona this year.

Plenty of other big names grace the DeSantis donor database. Notable financial figures include Charles B. Johnson of Franklin Resources ($594,919 since 2019); Home Depot co-founder Bernie Marcus ($500,000), hedge funder Paul Tudor Jones ($400,000), and more.

Home Depot co-founder Bernie Marcus during a ribbon cutting ceremony in 2005. (Barry Williams/Getty Images)

DeSantis has already set the fundraising record among non-self-financing governors and willI likely soon surpass the totals achieved by Meg Whitman in California and Jay Pritzker in Illinois in recent years. Those two billionaires spent millions of their own money on their respective campaigns

The Florida governor has also gotten notice, but not yet any money, from another key GOP bankroller. Billionaire Peter Thiel, the key Trump donor in 2016 who sat out the 2020 presidential race, said at a recent conservatism conference that DeSantis is probably the best of the governors in terms of offering a real alternative to California, Insider reports.

Neither Trump nor DeSantis has yet declared plans to run for president in 2024, though Bryner notes they're both building their campaign war chests and may end up competing for donors in 2023.

Then-President Donald Trump and Florida Governor Ron DeSantis participate in a "COVID-19 Response and Storm Preparedness" event in Belleair, Florida in 2020. (REUTERS/Tom Brenner)

Trump is handily beating DeSantis in nearly every poll, which can be far from a reliable indicator this far ahead of an election. The former president has maintained his usual bravado in the face of the possible challenge.

Asked about potential competition from DeSantis, Trump told Yahoo Finance in an interview last year: I'd beat him like I would beat everyone else.

Ben Werschkul is a Washington correspondent for Yahoo Finance.

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Florida's Ron DeSantis is on the cusp of raising more than any governor ever - Yahoo Finance

With the stock market in a deep funk (and getting funkier by the day) investors are looking for safe places to park their money, like stocks that pay healthy dividends. Which would be telecom stocks, right?

Maybe not.

The truth is that telecom stocks there are really only three biggies these days; AT&T (T), Verizon (VZ) and T-Mobile (TMUS) arent what they used to be. Some say that has to do with their disastrous forays into the world of media, but its probably more a matter of failed execution and the maturation of the business.

First the media math. Remember that within a two-week period in May of last year, both AT&T and Verizon jettisoned WarnerMedia and Yahoo, their respective content properties, (yes, the latter owns my employer, Yahoo Finance). These moves were made to rid the data-driven, left-brain telcos of frivolous, flowery never mind costly media businesses. Getting out of content, the thinking went, would allow the telephone companies distribution businesses to run full-out and unfettered, which would presumably be a boon to shareholders.

My days are a little bit more predictable than they were a couple of years ago, AT&T CEO John Stankey told Yahoo Finance's Brian Sozzi this week. That's one of the reasons why we made the decision to do what we're doing. I didn't think I could do my best work or the broader management team could do their best work if we were trying to fight too many battles on too many different fronts. We are a more focused company today. We're executing each week better than we were the week before, but we still have room to go.

John Stankey speaks onstage at HBO Max WarnerMedia Investor Day Presentation at Warner Bros. Studios on October 29, 2019 in Burbank, California. (Photo by Presley Ann/Getty Images for WarnerMedia)

For sure on that last point.

Since May 15, 2021, roughly when these announcements were made, Verizons stock is down 18% and AT&T is down 19%. The S&P is only off 4%. The stocks still underperform the market after factoring in their 6% plus dividend yields.

Perhaps thats surprising given these companies made game-changing announcements particularly in the case of AT&T, as its divestment of content was a much bigger move relative to the size of its overall business. Its also surprising since both AT&T and Verizon stocks sport generous dividend yields, which ideally would bolster the shares during a market downturn.

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Did deep-sixing the content businesses help the telcos stocks? No, it did not.

Before we get more into that, lets first consider T-Mobile, once ridiculed (and still loathed) by the Big Two, for its over-the-top former CEO, John Legere, and its garish (yet effective) pink branding. Legere stepped down two years ago, but, guess what, T-Mobile is now ascendent if not triumphant. Barrons recently pointed out that T-Mobile has a bigger market cap ($177 billion) than Verizon ($173 billion) or AT&T ($119 billion). True, both Verizon and AT&T are more leveraged, so that the overall enterprise value of the two older companies is bigger. But the fact remains that T-Mobile stock has trounced Verizon and AT&T and the market over the past five years.

John Legere arrives at Manhattan Federal Court during the T-Mobile/Sprint federal case in New York, U.S., December12, 2019. REUTERS/Shannon Stapleton

Why is that? In a word, execution. T-Mobile merged with Sprint, priced aggressively to build market share, and most importantly, improved its network.

TMUS 5g network is probably 18 months ahead of AT&T and Verizon's, if not a little more, says Keith Snyder, an industry analyst at CFRA. [AT&Ts and Verizons] balance sheets are bad. Those two companies combined have about $300 billion that they need to get off their balance sheet at some point. Meanwhile, they need to spend very heavily on network deployments and new spectrum.

And another thing: Verizon's stock price is lower than it was 20 years ago. AT&T's stock price is lower than it was 20 years ago, says veteran industry analyst Craig Moffett. Granted, they've paid dividends, but the total return by owning those stocks has been less than what you would have gotten from a corporate bond."

Someones made money here, though. As this 2017 McKinsey report points out, internet giants Amazon, Google and Facebook have built up massive businesses on the networks of AT&T and Verizon. The combined market caps of those three tech giants $3 trillion is 6.4 times that of the three telcos' $469 billion.

So did AT&T and Verizon blow it by not being able to marry content with distribution? Moffett thinks thats a red herring.

I'm not sure the tug and sway between content and distribution has ever been a terribly relevant thesis, Moffett says. It's one of those things that people like to talk about, but it doesn't really have all that much real-world application. Partially the problem with trying to be vertically integrated is that the law frowns on it. So there's limitations on what you could do. You could theoretically make content exclusive and that sort of thing, but as carriers you generally aren't allowed to do that. So there isn't really any particular strategic logic for being vertically integrated.

To Moffett its more a matter of two companies with declining businesses and bloated balance sheets that will struggle to pay their dividend down the road. AT&T already cut its dividend as part of its divestiture of the media business earlier this year.

As for the companies path forward: They're not going to go bankrupt, Snyder says. They're established, their businesses are generating cash. It's just that they need to rethink what they're doing. Moffett offers a more succinct prognosis: It's terrible.

On the other hand, both analysts are sanguine about T-Mobile, which they say will continue to grow at the incumbents expense.

Is there any optimism to be had AT&T or Verizon? The bull case for Verizon or AT&T is that expectations are so low that the stocks have nowhere to go but up, Moffett says. And as long as they maintain the dividend, that thesis could perhaps work. But then he adds: The problem is, as we've seen so often with these companies, if they can't generate any growth, then the sustainability of the dividend eventually is in doubt.

For Verizon and AT&T, its not a great position to be in. Turns out even big splashy media deals couldn't help them.

This article was featured in a Saturday edition of the Morning Brief on Saturday, September 17. Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. Subscribe

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How media and T-Mobile got the better of AT&T and Verizon - Yahoo Finance

Lakers guard Russell Westbrook

The Lakers are stacked at guard especially point guard.

Russell Westbrook is a point guard. Patrick Beverley is a point guard. People may think of Kendrick Nunn as a two-guard, but hes 62 and has played every minute at the point (according to Basketball-Reference.com). Now the Lakers have brought veteran Dennis Schroder back into the mix at the point.

And all that ignores the fact LeBron James actually functions as the lead guard in Los Angeles.

Could the Lakers end up bringing Westbrook off the bench?

It was widely discussed around the league last season, and Frank Vogel and his Lakers staff reportedly considered it, but only went as far as benching him at the end of a couple of games. New coach Darvin Ham has the green light to do it and the Lakers have talked about it, Jovan Buha and Sam Amick of The Athletic report.

Yet, while the Lakers have been hopeful the Westbrook experiment might be a success this time, sources with knowledge of the situation told The Athletic that the prospect of Westbrook coming off the bench is being strongly considered.

At a minimum, it seems clear Westbrook will have to outplay new addition Patrick Beverley and Schrder if hes going to retain his starting role.

A player of Westbrooks stature MVP, nine-time All-Star, triple-double machine deserves a fair shot at the starting job heading into training camp. He might even be the presumptive starter unless someone else beats him out Westbrook and Nunn, with Beverley and Schroder off the bench. However, to stay a starter, Westbrook is going to have to accept a role within Hams offense, one where he spends some time in the corner as a shooter, plus hes going to have to defend every time down the court, things he was not willing to do for Vogel last season.

Its hard not to watch Westbrooks volume scoring game the past couple of seasons where he wants the ball in his hands but is just not efficient enough to be a No. 1 option anymore and think he would thrive as a sixth man. It wasnt just fans and the media talking about it, scouts and other team coaches were as well. Westbrook could be in a Jamal Crawford/Lou Williams/Jordan Clarkson role where he is given free rein and a green light against lesser defenders for 15ish minutes a night to do what he wants. He could still close games some nights, depending on matchups, but his primary goal would be to rack up numbers with the second unit and keep the Lakers in games (or extend leads).

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Its also possible a trade for Westbrook becomes more viable during the season (the longer it goes on, the less of his salary a new team would have to pay out of pocket). Amick and Buha confirm what has been said about the Lakers for weeks: They are interested in Bojan Bogdanovic, Clarkson, and Malik Beasley out of Utah, as well as Buddy Hield out of Indiana, but with the Lakers not wanting to take on salary into next season or give up both fist-round picks they can trade, its next to impossible to make a deal.

The Lakers are going to start the season with Westbrook. The only questions are will he start or come off the bench, and how well will he accept that new role?

Reports: Dennis Schroder agrees to re-join Lakers on one-year deal Showtime Lakers reunite for one more practice, few days in... LeBron says NBA definitely got this wrong with Sarver; Adam...

Beverley. Now Schroder. Could the Lakers bring Russell Westbrook off the bench? originally appeared on NBCSports.com

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Beverley. Now Schroder. Could the Lakers bring Russell Westbrook off the bench? - Yahoo Sports

The Tesla Model Y.Tim Levin/Insider

I drove a Tesla for the first time and came away impressed with the much-hyped brand.

The Model Y's sleek interior, speedy acceleration, and innovative tech features set it apart.

But its oversized touchscreen and lack of physical buttons isn't for everyone.

Tesla created and dominates the burgeoning market for electric vehicles. But can the startup's popular cars withstand a barrage of competitors from titans like Ford, General Motors, and Volkswagen?

That's the big question I sought to answer when I got behind the wheel of a new Tesla Model Y SUV earlier this month. After testing more than a dozen battery-powered rides in the last year but never one made by Elon Musk I wondered whether Teslas can live up to the hype or not. Put differently: Are the company's fanatical supporters right, or are its cars nothing special?

I borrowed a friend's Tesla to find out for myself. (The company doesn't offer press loans, so journalists have to get creative.)

The Tesla Model Y.Tim Levin/Insider

The Model Y is Tesla's small SUV and its most popular product. It has a starting price of $65,990 and two motors that provide all-wheel drive. A Performance version that sacrifices some range for added quickness is available for $4,000 extra, but the base model is plenty sporty.

Tesla doesn't have dealerships and instead sells its cars online, direct-to-consumer. Buyers can take delivery at a Tesla location or have their vehicle shipped to their home.

The Tesla Model Y.Tim Levin/Insider

Slide into a Tesla and you'll find a refreshingly uncluttered interior free of conventional buttons, vents, and gauges. The cabin's sleek design and understated wood trim more evoke an Apple store than an automobile.

This minimalist look is made possible by a large touchscreen that controls practically all important vehicle functions aside from stopping, going, and turning. This command center contains the door locks, A/C settings, speedometer, and navigation system. It's also stuffed with outside-the-box features like games, a digital whoopee cushion, and Netflix, which can help owners pass the time while charging.

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The Tesla Model Y.Tim Levin/Insider

The display is super responsive to taps and swipes and features crisp graphics. Plus, Tesla regularly adds new capabilities through software updates, making the Model Y's cockpit a tech nerd's paradise.

There's plenty of room to stretch out in both the front and rear seats thanks to a totally flat floor and tall glass roof. And the Model Y provides tons of cargo space, including a generous trunk up front and an under-floor storage area in back, both of which you won't find in every EV.

The Tesla Model Y.Tim Levin/Insider

Despite not being the Performance model, the Model Y I sampled accelerated stunningly quickly, darting forward with every nudge of the accelerator pedal in the same way that other high-powered EVs do. And it handled more like a sports car than a lumbering SUV, offering quick, precise steering that let me point exactly where I wanted to go.

Tesla's advanced Autopilot feature confidently kept the SUV centered in its lane and followed the flow of traffic. While the system isn't autonomous, it could be helpful on long highway stints.

The Tesla Model Y.Tim Levin/Insider

Charging up after a long day depleting the Y's 330-mile range is easy as cake. After loading a credit card into the Tesla app, one simply pulls into one of the country's 1,500 Supercharger locations and plugs in.

Using Tesla's exclusive fast-charging stations is remarkably seamless compared with the often clunky process of filling up a non-Tesla at a public plug.

The Tesla Model Y.Tim Levin/Insider

As much as the Model Y is a tech-lover's dream, it could prove more of a nightmare for the less technologically adept.

Basic functions like opening the glove box, changing the wiper speed, and directing the air vents require using the touchscreen, which is not just inconvenient but also distracting to do while driving. I couldn't help but consider how someone like my mom, who needs help using DVR and shudders at the thought of navigating some new app, might be overwhelmed by a fully digitized driving experience.

The Tesla Model Y.Tim Levin/Insider

Plus, the Model Y lacks Apple CarPlay and Android Auto.

While the Y's stiff suspension aids agility, it doesn't insulate passengers well from bumpy roads. I also noticed lots of wind and road noise above 60 mph.

The Tesla Model Y.Tim Levin/Insider

As it turns out, the Tesla fans have a point. The Model Y has a lot going for it in that it's packed with dazzling tech, drives better than most SUVs, grants access to Tesla's convenient charging network, and generally feels different from other cars.

But it's not without flaws. In addition to what I've noted, widely reported issues like inconsistent build quality and difficulty with repairs are important considerations, but I didn't experience either firsthand.

The Tesla Model Y.Tim Levin/Insider

The Model Y is a great choice for many buyers, but Tesla isn't the only game in town anymore. The EV-curious have more attractive options than ever before as players like Audi, Rivian, and BMW pile into the EV space. And the competition is getting stiffer by the day.

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I drove a Tesla for the first time after testing 14 other electric cars. Now I get why people are so obsessed with Elon Musk's vehicles. - Yahoo...